UK regulator Ofcom rolled out a pair of proposals designed to ease mobile number portability for wireless customers
U.K. telecom regulator Ofcom proposed a pair of new rules designed to simplify the process for mobile customers looking to switch wireless carriers. The proposals include a new process in which the carrier the customer is switching to would be in charge of the process, while the second proposal is a modification of current rules that requires customers to contact their current provider for a special code in order to move their number.
Ofcom said it prefers the new option, which is termed a “gaining provider-led” process and places all responsibility for the number port in the hands of the “gaining” carrier. The customer would only be required to deal with the carrier they are switching to in the process, which is similar to the number portability process used in the United States.
The proposal to modify the current process would provide customers with the ability to receive their “PAC” code needed to transfer their mobile number to a new carrier via text message or online.
Customers will still need to receive a new SIM card from their new provider with either option, but the new proposals are set to ensure the customer’s old provider does not deactivate a customer’s SIM card until the porting process is complete. Ofcom said 38% of customers that switched mobile operators over the past 18 months experienced “one major problem during the process,” including 11% stating difficulty in contacting their current provider, 10% having difficulty canceling their service, 10% having issues in keeping their phone number and 20% claiming to have temporarily lost mobile service. The government regulator noted 5.9 million mobile customers have never switched service or considered switching service providers due to concerns regarding the current porting process.
Ofcom, which is accepting comments on the proposals through June 1, claims both options will provide a “faster, simpler switch for mobile customers.”
“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,” said Sharon White, Ofcom Chief Executive. “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.”
Analysts noted the proposals could be most beneficial for larger carriers that have established lower overall churn rates than smaller carriers.
“Of course all of this is good news for service providers with the largest market share,” said Declan Lonergan, VP at 451 Research. “This is reflected in their subscriber churn rates which have remained pretty stable – and low – over the past few years, especially on the postpaid side.”
Lonergan did note a more important task for Ofcom would be in attempting to ease porting options for consumers signed up for bundled service offerings.
“In instances where the customer is subscribing to three or four services from a single provider as part of a bundled offering, facilitating fast and painless switching to an alternative provider (or providers) is a significant challenge,” Lonergan said. “With the U.K. set for increased penetration of multiplay services over the next few years, Ofcom will probably be faced with the reality of churn rates that are even lower than those for postpaid mobile today. This has been the experience in other European countries where low churn is highlighted as a key benefit of the shift to service bundling, at least as far as the [service providers] are concerned. For consumers on the other hand, SPs boasting of reduced churn is not necessarily a welcome development.”
Ofcom did note it was looking into the bundled services issue between providers using the Openreach, Virgin Media cable or Sky satellite services, and expects to publish next steps, including any proposals for change as necessary, in the summer.”
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