Virgin Media fined £28m by Ofcom over mishandled calls

What's happened

Ofcom has fined Virgin Media £28 million after a three-year probe found the provider deliberately mishandled millions of customer calls amid efforts to deter cancellations and retain customers. The regulator says call drops, transfers, and long holds affected broadband, landline and pay-TV customers; Virgin Media has overhauled its customer-services operation in response.

What's behind the headline?

Key takeaways

• Ofcom’s ruling marks the largest consumer-protection fine under its regime, signaling a tougher stance on customer-hostile practices.
• The two-tier retention model and incentive structures appear to have created a culture that discouraged cancellations.
• The decision reflects growing regulatory focus on service fairness in telecoms amid rising consumer frustration with cancellations and upselling.

What this means for readers

• Expect less friction when trying to cancel or switch providers as Virgin Media implements remedies and compensations within six months.
• Other providers may face scrutiny if similar practices persist, potentially reshaping call-centre incentives.

Forecast

• We should see tighter compliance checks across the industry and more transparent handling of cancellations in the next 12 months.

How we got here

The investigation covers Jan 2022 to Sept 2024, when Virgin Media faced complaints about cancelling services and poor handling of calls. Ofcom found evidence of a two-tier retention structure and a commission scheme that rewarded discouraging cancellations. Virgin Media merged with O2 to form Virgin Media O2 in 2021 and later redesigned its customer services.

Our analysis

The Guardian reports Ofcom’s findings and the £28m fine, noting a two-tier system and commission rewards for discouraging cancellations. Independent and BBC News corroborate the broad findings, with quotes from Ofcom’s Natalie Black highlighting the scale of the penalties and the regulator’s expectations for compensation. BBC emphasizes the deliberate tactics like hang-ups and long holds; Guardian mentions customer stories and a call for input on similar experiences.

Go deeper

• Will you be checking if your provider has updated their cancellation process?
• Have you experienced difficulties cancelling a contract with a telecoms firm?
• What changes do you expect from other providers in response to this ruling?

More on these topics

• Ofcom - Telecommunications company

  The Office of Communications, commonly known as Ofcom, is the government-approved regulatory and competition authority for the broadcasting, telecommunications and postal industries of the United Kingdom.

• Virgin Media - Telecommunications company

  Virgin Media is a British telecommunications company which provides telephone, television and internet services in the United Kingdom. Its headquarters are at Green Park in Reading, England.

• United Kingdom - Country in Europe

  The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom or Britain, is a sovereign country located off the north­western coast of the European mainland.