LONDON-- The U.K.'s communications regulator Friday said it is proposing forcing telecommunications companies to pay automatic compensation to customers affected by poor service such as slow repairs and missed appointments.

Ofcom Friday said the plans would mean up to 2.6 million additional landline and broadband customers could receive up to 185 million ($231.2 million) in new compensation payments each year.

The proposals apply to fixed broadband and landline telephone services only, Ofcom said.

Ofcom said that a proposal BT Group PLC (BT.A.LN), Sky PLC (SKY.LN) and Virgin Media put forward in response to its plans to introduce automatic compensation through a draft voluntary industry code of practice does not sufficiently meet its concerns.

A consultation on Ofcom's proposals will be open until June 5, and Ofcom will publish its decision statement around the end of the year, it said.

-Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter: @RoryGallivan

(END) Dow Jones Newswires

March 24, 2017 03:59 ET (07:59 GMT)

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