Ofcom proposes one-call mobile switching

The Office of Communications (Ofcom) this week proposed a new rule that may mean up to 47m UK smartphone users could reduce their phone bills by approximately £150 per year. From autumn 2016, a simplified one-call process to new phone providers will allow customers to switch companies to obtain a better mobile deal in a more efficient manner. Ofcom and TalkTalk Telecom Group suggest this may help drive competition by offering more choice and therefore empowering the 6m customers who have never switched mobile phone providers, due to their perception that the process is complicated and stressful.

Millions of Brits have never switched smartphones because they think it's too stressful and complicated a process. But thanks to a new rule, this could soon change

Millions of Brits to save £150 with a single call after Ofcom makes it easier to switch smartphone deals

Leading watchdog Ofcom is ringing in the changes to make switching easier for millions of smartphone owners.

It means up to 47 million Brits will be able to slash bills by an average £150 a year without battling with mobile phone companies in a complex and time consuming process.

For Ofcom’s shake up of the smartphone market will bring in a simple one call system that puts the heat on the providers to sort out the convoluted paperwork.

Under new plans - similar to simpler energy switching steps - all users need to do is contact their new provider who will then take over the process.

Ofcom figures show out of 47 million mobile phone users, only 2.5 million have switched companies in the last 18 months.

And almost six million have never switched because of the complicated and stressful process, Ofcom said.

It slammed the current system as “unacceptable” and said consumers were missing out on cheaper deals.

Under the existing scheme, Brits who want to switch but keep their number must call their provider and ask for a special code known as a PAC (port authorisation code) to allow them to transfer their phone number.

Monthly contract customers who are happy to ditch the number have to cancel their exiting deal and then start afresh with the new provider.

But switchers face a hard sell from firms to stay and can find it difficult to leave when providers drag their heels or cut off their smartphone service.

Image: PA) PA)

Ofcom 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.”

The new “gaining provider led” system is the regulator’s preferred method but it has also outlined an “automated PAC request” which allows mobile phone users to get their PAC by text or online with no need to speak to the old provider.

Both proposals will ensure that old SIM cards are not turned off until the new ones have been activated.

The final decision will be made in the autumn but Ofcom said the shake-up follows complaints from four in ten mobile phone owners who hit problems trying to contact providers when trying to switch.

A fifth said they were cut off during the transition period and one in ten had to battle to keep their number.

Telecoms experts called on Ofcom to plump for the “gaining provider led” option.

Ernest Doku of uSwitch.com said: “The major problem with a market where the operator you’re trying to leave handles your switch, is they have no incentive to make it easy.

“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 being reserved for those who haggle.”

Dan Howdle of advice website Cable.co.uk said: “I’m elated that Ofcom is finally looking to expose the convoluted switching process for what it is - not merely a series of laborious administrative hoops, but a set of sticking points designed to actively dissuade us from switching provider.

“Customers can save a lot of money by switching to the best new customer mobile deals.

“ If Ofcom takes this action this coming autumn, UK consumers can look forward to shaving a significant amount from their annual outgoings, and with far less fuss.”

And Tristia Harrison, managing director at TalkTalk added: “The existing system is over complicated, and makes it far too difficult for people to shop around for the best deals.

“An easier, simpler process will help drive competition and put power back in the hands of customers.”