MOBILE PHONE company O2 says the vast majority of domestic customers have been switched to online billing, despite reservations expressed by the telecommunications regulator.
The biggest mobile phone operator, Vodafone, is now also switching to paperless billing in a move that could have a disastrous impact on An Post.
Vodafone has made online billing the default option for all new domestic customers, who now have to pay €2 for each paper bill. The company says it will decide on a case-by-case basis whether not to apply the charge to existing customers.
The Communications Workers’ Union has warned An Post could be threatened by a move by big companies to online billing. “The outcome could be more devastating than postal liberalisation or a possible sell-off,” it warned members recently.
An Post said there was “no doubt” customers, when given a choice, preferred paper bills.
Utilities and phone companies say online billing is environmentally friendly but it also saves them money. Most companies offer the option but take-up was low until O2 adopted a different approach by requiring customers to opt out of its proposed new arrangements.
O2 says over 70 per cent of its post-paid customers have been switched to online billing, with the rest having opted out by telling the company they want to keep receiving paper bills in the post.
ComReg expressed serious reservations about the switch without customers’ prior express permission last August and said the change should only be made with “prior explicit agreement”.
However, O2 proceeded with the change after an initial trial proved successful. Customers were told the news in a letter which began “If it’s okay with you, your next bill will be online instead of in the post”. Details of how to opt out were provided at the bottom of the letter. Asked what the regulator had done, a ComReg spokesman said: “ComReg is pursuing the issue with O2 and we will provide an update when there are any developments to report.”.
Asked whether the telecoms provider was legally entitled to force people to opt out of online billing, a spokeswoman said the company believed it was in compliance with its licensing requirements.
O2 has 1.7 million customers but over-65s have not been switched to online billing and the change would not apply to pay-as-you-go customers. The spokeswoman declined to say how many customers had been switched to online billing or how much money had been saved by the change.
The Consumers Association of Ireland said the move was unprecedented because it forced customers to opt out of the change rather than giving them a choice.
Chairman James Doorley said in the UK companies provide incentives and cheaper rates to those who opt for online billing.
“I also think people are more likely to check their bills if they get them in the post.”