Switching broadband about to become faster and easier

Telecoms regulator Ofcom is introducing new procedures to improve the ease and speed of switching your broadband and home phone.

Telecoms regulator Ofcom has announced plans to streamline, speed up and improve the entire switching process.

The watchdog believes that users currently face a number of different switching processes, depending on which provider they are moving from and to, plus the type of service being switched. The three main switching processes are: 

1. A ‘losing-provider-led’ switching process, where you must first contact your existing provider to obtain a code to give to the new provider.
2. A ‘cease and re-provide’ process, which requires you to communicate with both existing and new providers for your service to be terminated and new one installed.
3. A ‘gaining-provider-led’ process (also known as ‘notification of transfer’), where you only need to speak to the new provider, which then takes over the whole switching process.

Even more confusingly, if you're switching bundled services (such as broadband, landline and digital TV) you may have to follow both losing-provider and gaining-provider processes at the same time.

What's more, Ofcom's research found that, in cases where customers have to contact existing suppliers to request changes, the resulting process can be significantly more difficult to follow. This process also hands too much control to existing providers, which have an incentive to delay or disrupt transfers. This often results in unwanted pressure on customers not to change providers.

Easier, faster switching

To resolve these problems, Ofcom has decided that we need follow only a single switching process in future. In this gaining-provider-led process, new providers will lead the transfer process on behalf of those switching service. This means that we will no longer need to contact existing providers for the codes used to switch providers.

At present, this gaining-provider-led is already in use for most landline and broadband switches. However, the telecoms watchdog clearly believes that universal adoption of this approach will improve competition among providers, while also making the switching process simpler, faster and more transparent.

Research conducted by Ofcom last year certainly backs up its view that people switching their broadband or landline service find gaining-provider-led switches much easier to follow than the alternatives. Its survey found that three-fifths (60%) of people who switched both their landline and broadband services through a gaining-provider-led process found switching 'very easy', versus less than two-fifths (38%) of losing-provider-led switchers.

Loss of service during transfers - another major issue for many - occurred twice as often with gaining-provider-led switches, affecting almost a fifth (19%) of switchers. In contrast, less than a tenth (9%) of gaining-provider-led switchers experienced loss of service during transfers.

Three concerns for consumers

While this proposed streamlining of switching is welcome, there are at least three snags.

First, it applies only to switching providers on the Openreach copper network. Therefore, this will not help consumers currently connected via cable and fibre-to-the-premises (FTTP). For example, Virgin Media fibre-optic customers (including me) will not benefit from streamlined switching.

Second, Ofcom's consultation closes in October 2013, after which it expects to finalise new rules by early 2014, for introduction a year later. In other words, it may be spring 2015 before the switching process improves.

Third, Ofcom has decided against third-party verification of switching. This could lead to an increase in 'slamming' - suppliers switching people without their express knowledge and consent. This bad practice plagued the energy industry after UK markets for gas and electricity were thrown open to full competition. To combat slamming, Ofcom will require providers to keep records of every customer’s consent to switch.

The best deals

If implemented successfully, Ofcom's proposed bank-style switching service will make it easier for us to change phone and broadband providers with little fuss. With new providers doing all the spadework for customers, tariffs could well become cheaper over time, thanks to heightened competition.

In the meantime, there are still plenty of good reasons to switch providers, not least benefiting from faster broadband and lower prices. Typically, these savings amount to around £120 a year -- a sum well worth the modest amount of effort switching involves.

Here are three of the best deals for broadband bundles available today from market leaders BT, Sky and Virgin Media, courtesy of our award-winning partner, broadbandchoices.co.uk:

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