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UK mobile phone firms to be banned from selling locked handsets UK mobile phone firms to be banned from selling locked handsets
(about 3 hours later)
Ofcom says companies must allow customers to switch networks freelyOfcom says companies must allow customers to switch networks freely
Mobile phone companies are to be banned from selling devices that are locked into specific networks, the UK communications regulator has ruled. Mobile phone companies are to be banned from selling devices that are locked into specific networks to make it easier for customers to switch providers.
Ofcom said BT/EE, Tesco Mobile and Vodafone would be told to follow other big-name rivals in only supplying phones that allow customers to switch from one network to another while keeping their existing handset. The rules will come into effect from December 2021. The telecoms regulator, Ofcom, has ruled that BT, its mobile subsidiary EE, Tesco Mobile and Vodafone will have to stop selling mobiles that work only on their network from December next year. Other UK mobile phone operators already allow customers to switch from one network to another while keeping their existing handset.
Selina Chadha, Ofcom’s connectivity director, said: “We know that lots of people can be put off from switching because their handset is locked. So we’re banning mobile companies from selling locked phones, which will save people time, money and effort – and help them unlock better deals.” Ofcom said while consumers were able to get their mobile phones unlocked, it was sometimes complicated, and could cost about £10.
Companies such as BT/EE, Tesco Mobile and Vodafone still sell mobile phones that cannot be used on other networks unless they are unlocked. Customers can unlock their phones for a fee. In about half of cases, customers experienced difficulties switching providers. The regulator’s research found that more than a third of people who decided against switching did so because they were deterred by the process.
“We know that lots of people can be put off from switching because their handset is locked,” said Selina Chadha, Ofcom’s connectivity director. “So we’re banning mobile companies from selling locked phones, which will save people time, money and effort – and help them unlock better deals.”
Ofcom said it expected widespread compliance with the new rules, and companies breaking them risked heavy fines.Ofcom said it expected widespread compliance with the new rules, and companies breaking them risked heavy fines.
A Vodafone UK spokesman said: “We stand ready to implement these changes when they come into force.”A Vodafone UK spokesman said: “We stand ready to implement these changes when they come into force.”
Richard Neudegg, the head of regulation at the comparison site Uswitch.com, said the announcement would “finally rid the industry of this anachronistic practice … Despite some modest improvements to the process, unlocking, when required, is often a pain. A spokeswoman for EE said: “We’ll work with Ofcom to comply with its guidance.”
“When the new rules come into force, customers will be able to buy the phone and package they want, with whatever network, safe in the knowledge that if they later choose to switch to another network, they can do so easily and base the decision purely on what’s right for them.” Paul Stobart, the chief executive of Zen Internet, welcomed Ofcom’s move to support consumers but said it should not have required intervention by the regulator.
“To be honest, it is disappointing that the regulator has to intervene at all,” he said. “It should be up to all of us in the industry to make switching frictionlessly easy.”
The ban forms part of a package of measures to help customers, including giving them a full summary of their exact package including length and price.
Richard Neudegg, the head of regulation at the comparison site Uswitch.com, said the announcement would “finally rid the industry of this anachronistic practice”.
“Customers will be able to buy the phone and package they want, with whatever network, safe in the knowledge that if they later choose to switch to another network, they can do so easily and base the decision purely on what’s right for them,” he added.
Ofcom plans to launch a consultation to make it easier for customers to switch broadband provider. In recent years, the regulator has made it significantly simpler for consumers to change providers operating on BT-owned Openreach, which controls and runs most of the UK’s broadband network, such as BT, Sky and TalkTalk.
But trying to switch to a different network, such as Virgin Media’s cable network or the broadband network operated by CityFibre, is much more difficult.
“Reform of the switching system will be vital, with new full-fibre networks being rolled out across the country,” Neudegg said. “And as the industry has so far failed to agree to a new process, all eyes will be on the regulator to see how this will work in practice.”