Switching mobile networks to be made easier

http://www.theguardian.com/money/2016/mar/23/switching-mobile-networks-ofcom

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Mobile phone customers will not have to organise their own move to a new provider under proposals designed to make it easier for people to switch.

Telecoms regulator Ofcom said around 2.5 million people who had changed providers in the past 18 months had experienced at least one major problem during the process, including difficulties cancelling their existing service or keeping their phone number.

Under the current system, consumers who want to switch but keep the same number have to notify their existing provider and request a Pac code, which they take to the provider they plan to join.

Even if they do not want to transfer their number, if they are on a pay-monthly deal they must cancel their existing service when they have signed up to a new provider.

Ofcom has proposed two alternative options to make mobile switching quicker and simpler, and support competition in the market.

Under its preferred option, responsibility for the switch would be with the new provider, which would arrange the transfer of the number and the cancellation of the existing contract. This “gaining provider-led process” would mean that customers would only deal with the firm they were moving to.

The second option is a change in the process of getting Pac codes, which would mean customers could request it by text or online, rather than having to phone up and ask.

Ofcom said some customers had indicated that they were put off switching because they did not want to call to cancel.

Both options include measures to help customers avoid paying double when moving between deals and their contracts overlap. Under the first one, firms must allow people to defer the start of their new deal by up to 30 days, while under the second the notice period would start the day the Pac is requested.

Ofcom’s chief executive, Sharon White, said: “It is unacceptable for people to be missing out on better mobile deals because they fear the hassle of switching, or are put off having had a poor experience in the past.

“We want mobile customers to benefit from speedier, simpler switching, making it easier for them to vote with their feet and take advantage of choice in the market.”

Ernest Doku, telecoms expert at price comparison website uSwitch.com, said the gaining provider-led process was the only solution.

“The major problem with a market where the operator you’re trying to leave handles your switch is that they have no incentive to make it easy,” he said.

“A gaining provider-led model should spell the end of the best deals being kept under the table, only appearing when you threaten to leave – not unlike a Marrakesh souk. All customers should be able to see those offers, rather than them being reserved for those who haggle.”

Doku added that the process to unlock handsets needed to be simplified too. “Ideally, all smartphones should be sold unlocked to support new networks.”

Ofcom’s consultation on the proposals runs until 1 June, and it plans to announce its decision and a timeframe for implementation in the autumn.