Ofcom to probe broadband switching

By MICHAEL CLARKE
Updated:

 

BROADBAND providers could be forced to make it easier for customers to switch suppliers under plans being considered by the telecoms watchdog.

Ofcom officials held a strategic review meeting with broadband providers and consumer groups earlier this week to thrash out how the industry should move forward.

The watchdog is concerned that consumers find it difficult to switch because suppliers make the process arduous and bureaucratic.

Ofcom is currently holding a lengthy strategic review on the future of the telecoms industry, but it is taking a closer look at the broadband market after consultation with consumer groups.

To change supplier inside of a 12-month contract consumers have to disconnect their service with the current provider before starting a new contract with another supplier.

It is possible to transfer at the end of a contract by asking their current provider for a MAC code and giving it to the new provider. However, if the current supplier or the provider the customer is moving to does not support the MAC process, then the customer must disconnect the service first.

In addition, consumers switching supplier cannot change the speed of their broadband connection. For example, somebody with a 512MB connection is only allowed to switch to a new provider on the same speed.

Ofcom believes this deters consumers from looking for the best broadband deal because of the 'hassle factor' of switching.

It is also thought Ofcom will look at the length of contracts consumers are tied to. Most suppliers insist that customers sign up for a 12-month deal, mainly due to the initial cost of setting up broadband. But the rate of progress in the industry means that many deals look poor value within months of them starting.

If customers want to release themselves from the contract early, most providers insist they pay up the term of the loan in full.

Ofcom currently operates a voluntary migration code of conduct, which the majority of providers are signed up for. However, a number of providers, including Tiscali, still have not yet signed up, making it difficult to switch.

Alan Tattersall, director of home services and communications at comparison website www.uswitch.com, said: 'The concern is how do customers change suppliers. At the moment switching is not as easy as you'd think and people can be left for up to 10 days without broadband.

'If you do any work from home or you are a small business and rely on your connection then that is too long to wait to change.'

Research from uSwitch suggests the majority of consumers are failing to shop around for the best broadband deals. Currently, 43% of consumers are signing up with their home phone supplier rather than scouring the market for cheaper options.

An Ofcom spokesman said: 'We are taking a close look at broadband, as we are with all sectors of the telecoms industry, in our strategic review.'

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