Ofcom Plans To Ease Broadband Migration

Nearly half of consumers are put off from changing their broadband or a landline provider, because it is “too much hassle”, according to a new study by Ofcom.

The regulator is reportedly looking at ways to make the switching process quicker and easier, in order to improve consumers’ experience and to make competition fairer and more effective.

Complex switch-over

Ofcom has proposed a system where the customer’s new service provider guides the switch-over, giving the new provider an incentive to ensure that the process runs smoothly, as well as sparking competition between providers, driving lower prices and greater innovation.

However, Ofcom warns that measures will need to be implemented to protect consumers from the growing practice of “slamming”, where a customer is switched by an operator without their consent.

“There are a lot of different switching processes in the communications market, some the industry came up with, some the previous regulators sorted out – so it’s not surprising that people don’t find it easy to switch,” an Ofcom spokesperson told BBC News.

“There needs to be some level of consumer protection in there, but the process needs to be simple enough for people to take advantage of competition, better services and cheaper prices.”

Adding to the complication is the fact that around half of consumers buy their telecoms services as part of “bundles” including broadband, landline, mobile and television. The switching process for bundles therefore also needs consideration.

Broadband roll-out

Ofcom intends its plans to apply to the roll-out of superfast broadband across the UK – a process which is itself facing difficulties, largely due to funding shortfalls. In July, Culture Secretary Jeremy Hunt announced that the government’s plan to roll out 2Mbps broadband to all British homes by 2012 had been delayed until 2015.

About three million households (mostly in rural areas) still cannot get 2Mbps, and around one percent of the country (160,000 UK homes) cannot get broadband over phone lines at all, while fibre-based superfast broadband will miss about a third of the country under current plans by commercial providers.

Commercial operators plan to compete for the economically viable sectors of the country, instead of running fibre where people cannot afford it, but Hunt called for them to co-operate and share their networks saying: “There is currently nothing to stop telecoms or utility companies reaching commercial agreements to share their infrastructure, but very few agreements currently exist.”

Meanwhile, Ed Vaizey, the government’s Digital Minister, has said there will be no review of the business rates on fibre networks, which some say are the “biggest single barrier” to investment in next-generation networks.

“The key is that the system is transparent,” said Vaizey, speaking at the launch of a new fibre-to-the-cabinet (FTTC) broadband service put into the Hertfordshire village of Birch Green by a small broadband operator called Vtesse Networks. “My job is to work with the VOA to bring my issues to the table. We don’t need to go through the rigmarole of a review.”