Ofcom has confirmed it is to consult on introducing end-of-contract notifications for telecoms customers this summer.
According to recent research by uSwitch, more than eight million broadband customers and three million mobile customers who have a handset included in their deal may currently be out of contract.
This means that when the initial term of the contract is over, they are likely to be charged higher "out of contract" prices for the same service, without being notified.
Since telecoms providers are under no obligation to tell their customers when deals are coming to an end, uSwitch has put pressure on Ofcom to introduce end-of-contract notifications, as it would encourage more people to consider the quality and value of their service.
Ofcom has now stated it plans to consult on this idea in July 2018, as well as examine what factors might be stopping people from shopping around.
Richard Neudegg, head of regulation at uSwitch, commented: "Today’s announcement doesn't come soon enough.
"The introduction of end-of-contract notifications would finally see the communications industry catch up with others such as insurance and energy. "Whilst not a done deal that Ofcom will implement this, it is one step closer to victory for consumers who deserve to know the facts and shouldn’t be made to jump through hoops."
According to uSwitch's study, 79 per cent of telecoms customers do not know that broadband and mobile phone providers are not obliged to tell their customers when their contracts have ended.
However, some 40 per cent of broadband customers said they would be prompted to look for a cheaper or better deal if they knew when their contract was drawing to a close.
In addition, 47 per cent said they would get in touch with their broadband provider to negotiate a better deal if they were informed, while 18 per cent would be willing to switch providers in order to get a better contract.