The regulator says that from 15 February, 2020 firms including Sky, Virgin and BT will need to tell customers the best deals available to them.
Research indicates more than 20 million customers have passed their initial contract period and says many of them could be paying more than they need to.
People who bundle their landline and broadband services together pay, on average, around 20% more when they are ‘out of contract’. This rises to 26% among customers who bundle their pay TV with these two services.
Lindsey Fussell, Ofcom’s Consumer Group Director, said: “We’re making sure customers are treated fairly, by making companies give them the information they need, when they need it. This will put power in the hands of millions of people who’re paying more than necessary when they’re no longer tied to a contract.”
Providers will be required to send personalised and tailored information to several million individual customers.