Ofcom's simpler switching plans 'will shake up mobile industry'
Both new and loyal customers will benefit if Ofcom makes it easier to change provider, says expert
Ofcom's plans to make it easier to switch between mobile operators would benefit new and loyal existing customers, it is claimed.
The regulator wants to tackle problems users face in changing their mobile network provider by simplifying the process, and today released a consultation document on the issue.
Currently users changing their network who wish to keep their current number must obtain something called a PAC code from their previous provider and pass it over to their new provider to switch their number across.
Under Ofcom's proposed update, however, the customer's new provider would be responsible for shifting their number across themselves.
Dan Howdle, editor-in-chief of mobile comparison service Cable.co.uk, said such a change would shake up the entire mobile operator industry, changing the way companies reward customers.
"Since switching currently involves contact with the provider they're leaving, customers often face a barrage of questions from providers trying to find an in' with which to change their mind," he said.
"Frictionless switching will even the odds among UK mobile providers, creating a better, fairer marketplace and allowing customers to take advantage of the best deals.
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"That, in turn, will shift the focus of special offers and limited deals from being primarily aimed at new customers to being equally shared among those who remain loyal."
Ofcom's consultation document said that fewer people are switching providers, with fewer even bothering comparing providers, either.
Just six per cent of customers switched their mobile operator in 2014, down from nine per cent in 2013, according to the watchdog's statistics, and half have reported problems during the process.
The report added: "We believe that the current switching arrangements are likely to generate unnecessary harm for customers. This is true whether or not they choose to port their number."
Those issues include the length of time switching can take, confusion over multiple ways to switch providers, overlapping contracts, and slamming' when a customer is switched to a new provider without their consent.
While another proposed option could see users simply text their old provider for their PAC code, Richard Neudegg, regulation expert at uSwitch.com, said making a new operator responsible for switching is the best way to overhaul an "archaic process", a step that could also revolutionise other industries.
"It is frustrating that it remains unnecessarily difficult and time consuming to swap mobile providers when 93% of us now own mobile phones," he said.
"Mobile has been left with an archaic switching process. With some providers, you even have to ask them to unlock your handset first. However, mobile is just one part of the bigger picture. Ofcom made changes to switching broadband in June, which improved the experience for some customers.
"However, these didn't apply to mobile, pay TV or Virgin Media's broadband network, so there is still plenty of room to shake things up there too."
What happens next
The watchdog will follow up its consultation document with a consumer survey, the results of which it will publish in spring 2016 if the survey suggests there are problems with the current process, another consultation will take place on how to address the issues.
For now, Ofcom wants feedback on its current document outlining its proposals, and people can find out how to submit their opinions here.
Best providers
The news comes on the same day as a RootMetrics survey found EE to be the top UK mobile operator for the first half of 2015, offering the best combination of speed and reliability.
The provider, which now has 10.9 million 4G customers, ranked top in the network performance analysis organisation's research, being the only operator to hit the 20Mbps threshold for median download speeds.
EE came top in 21 out of 24 awards, and tied the remaining ones with rival Three, tying on network reliability in Scotland and Wales.
Vodafone improved its overall ranking to come second, ahead of Three, in the network speed category, while O2 finished last overall in the UK, though RootMetrics predicted it will improve as its 4G network expands.
"EE is continuing to come out on top for mobile performance, but there is a heated and often close battle with the other operators," said Chris Smith, RootMetrics's general manager for Europe.
"We want consumers and network operators to look at this report and use it to inform purchasing decisions and understand the areas where improvements can be made."