Evidence from countries where such tariffs exist suggests that raising awareness among eligible consumers is a common problem
Portugal wants to see improvements after a disappointing start: The Portuguese regulator is getting serious about raising awareness of the recently launched social tariff. The main operators have made it available since February, at a cost of €5 (ex. VAT) per month, providing broadband at 12Mbps with a monthly allowance of 15GB. ANACOM has now launched an information campaign to target eligible households. The campaign will run in the press, on the radio, and through social networks, and will also target schools, student associations, and local authorities. The regulator estimates that more than 780,000 households are eligible, and aims to get them all on board. But uptake so far has been very low, with just 260 applications received as of 1 April. This shows that significant work will be needed to boost adoption.
Information campaigns are a necessary step: Portuguese operators are required to disclose information about the tariffs in “adequate” ways to raise effective awareness, but there are no specific requirements as to how prominently the tariff should be advertised. All the four main operators are currently displaying this information on their websites, but in places that could be difficult to find by those who aren’t specifically looking. Experience from other countries also suggests that low awareness is a common problem. In Belgium, where the regulator BIPT is reviewing the current framework for social tariffs, about a quarter of eligible households didn’t know about the tariff, and almost 10% are discouraged by the bureaucracy that comes with the application process. In the UK, Ofcom (and DCMS) recently called on operators to advertise their social tariffs more widely, having found that 84% of benefit recipients are unaware of them and that their uptake amounts to just more than 1% of those receiving Universal Credit.
Could the UK move towards a regulated tariff? For the time being, Ofcom is relying on voluntary commitments from operators, since it can only regulate social tariffs if the Government directs it to do so. However, the mood music is changing with the Culture Secretary now hinting at possible intervention. On Wednesday, BT came out in support of regulated tariffs. The fact that currently some major ISPs are not providing one places a higher burden on operators who do, and reduces the choice available to low-income households. BT also suggested that the tariffs could be funded by a discount scheme, with contributions both from Government and industry. Regulation would provide operators with certainty about the funding of social tariffs, as has been the case in Portugal where any net cost incurred for their provision can be shared between operators in the same way as the costs for the provision of universal service.
