Ofcom has today launched a consultation to seek views on a range of options to make it easier for consumers to switch mobile providers. Having recently made the switching process easier for broadband consumers, Ofcom now wants to focus its attention on improving the switching process for mobile customers.
Currently, there are different processes that consumers have to go through when they switch their mobile provider, depending on whether they wish to keep their existing phone number or not. Ofcom is raising concerns that these processes are causing confusion amongst consumers. They are concerned that there is a perception that switching providers is hard which, in turn, deters consumers from switching. As a result, consumers may end up paying more and missing out on the best deals.
One of the alternatives being considered is a process known as ‘gainer provider led’ switching. This puts all of the responsibility for the switch onto the company to which the consumer is moving. This means that consumers will no longer need to contact their current provider when they switch, unless they choose to do so.
Ofcom is also looking into ways to simplify the process for obtaining a code that allows customers to keep their existing mobile phone number. Currently, customers can choose whether to keep their existing phone number or receive a new one when they switch mobile providers. To keep their existing number, they have to port their old one to the new network. This involves customers contacting their current provider to obtain a ‘porting authorisation code’ (PAC) and then taking this number to the provider they are joining.
As it stands, customers still have to deal with their existing provider if they are on a monthly contract, even if they don’t want to keep their number. They have to contact their current provider to stop the service, and organise a new service with the new provider themselves. Ofcom wants to prevent operators from making this process deliberately difficult, as they are concerned that it can be unnecessarily difficult for customers to switch providers.
Ofcom launched an industry-wide investigation into arrangements for cancelling and terminating services, last month. This latest consultation is, therefore, part of the wider work of Ofcom to make it easier to switch between communications service providers. Ofcom is also looking into customers’ experiences of switching providers for ‘triple play’ services – including broadband, landline and paid TV – between providers that use Openreach, Sky satellite networks or Virgin Media cable.
According to Ofcom research, the switching rates for mobile services have fallen to 6% from 9% between 2013 and 2014. Ofcom research is ongoing, to determine the ‘complex range of factors’ that have caused the decline.
Ofcom seeks to enable consumers to make well-informed decisions. They are concerned that if the process of switching providers is not straightforward, then consumers will be less likely to switch and competition may be restricted as a result.
The consultation is open for responses until the 6th October. According to Ofcom, it will consult on more detailed options for reform on mobile switching, if necessary, in the spring of 2016. Any reforms are expected to be brought into effect as soon as possible thereafter.
In the meantime, if you’re looking to move your business mobile contract, get in touch with us at Midland Telecom Networks Ltd. We will make the process as quick and simple as possible guiding you throughout to move your mobile numbers and all your important data across to your new smartphones!