Ofcom to release broadband handcuffs

By MICHAEL CLARKE
Updated:

 

THE UK's telecoms watchdog is set to introduce new regulations to make it easier for consumers to switch their broadband provider.

Ofcom will issue proposals before the end of the year recommending the establishment of a code of practice that will force broadband providers to co-operate with each other when a consumer wants to switch.

The organisation admitted it has seen an upsurge in complaints from angry consumers who have been prevented from switching services because disruptive tactics by their provider.

In order to switch providers under current rules, consumers must request a Migration Code (Mac code) to give to the new supplier. However, there is nothing in law to force the provider to hand the customer the Mac code on request and many force customers to wait 30 days or until the have disconnected the service.

Blair Wadman, broadband manager at comparison website uSwitch.com, said: 'A Mac code means that the consumer's broadband connection is down for around 20 minutes but if the supplier refuses to hand that over and they have to disconnect it can mean they are without the internet for two weeks.'

There is a voluntary code of practice between some of the larger providers but Ofcom said that it is not working. The organisation believes this deters consumers from looking for the best broadband deal because of the 'hassle factor' of switching.

A spokesman said: 'We have seen a large increase in the number of complaints we receive on this issue. Many people are still in their first broadband contract and will be looking to switch when their current deal runs out so its important that there are guidelines in place to facilitate this.

'We expect the broadband market to become like the home phone or mobile phone market with plenty of competition and choice.'

Steven Locke needs his broadband connection for his job as a computer tutor. He wanted to switch services from Onetel to Tiscali but the company said it would give him the Mac code after a 30-day cancellation period.

He said: 'This was lucricrous as my broadband would have been disconnected so the code wouldn't have worked anyway. I need my broadband connection for my job and it would have meant I would have been without it for over a week.'

After several complaints to the company Onetel eventually relented and gave Mr Locke the code needed. 'It was an arduous process for me and I work with computers so it must be a minefield for less experienced people.'

It is also believed that Ofcom will examine the length of contracts customers are tied to. Most suppliers insist on a 12-month deal because of the initial cost of the setting up the service. 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 early from a contract they are often forced to pay up the term of the deal in full.

Most watched Money videos