Ofcom is making it easier to change broadband providers from Saturday 20th June, but over four million broadband users, and customers of other telecoms services like mobile and pay TV, won’t benefit from the new rules.
Over two million frustrated broadband users have tried and failed to switch to new providers in the past year, missing out on savings worth £83 million
Brits switch mortgages more frequently than they move broadband supplier with 25% who’ve never moved saying it’s not worth the hassle or is too complicated
Almost a third (30%) of broadband users have never changed provider, and only 16% have switched in the past 12 months
Even more loyal to their providers are pay TV customers with 43% having never left their current provider – 13% of them blame being tied into bundles
Uswitch explains why Ofcom’s changes to the switching process, in effect from today, need to be extended to other services.
Problems with moving broadband supplier are costing affected UK households a staggering £83 million in potential savings on their bills. Worryingly, over two million frustrated broadband customers have tried and failed to switch to new providers in the past year, according to new research from price comparison and switching service Uswitch.com. Those that have switched saved an average of £36 on their annual broadband bills, while 10% of customers saved more than £50.
This research comes as industry watchdog Ofcom changes the rules governing how customers switch broadband suppliers. From Saturday 20th June, the new broadband supplier (people want to move to) will handle the whole process, rather than the provider the customer is leaving. However, over four million broadband users will not benefit from these new changes, as they don’t apply to Virgin Media’s network – just those switching from and to broadband on BT Openreach, which includes BT, Sky and TalkTalk customers. And despite change being needed across the telecoms market, the new rules don’t apply to mobile and pay TV customers either.
Uswitch’s research also reveals that Brits are actually more likely to get a new mortgage than move broadband supplier. Across the telecoms market, 43% of customers have never left their pay TV provider, 31% have stayed loyal to their mobile network, 32% have been with the same home phone provider since the beginning and 30% have never moved broadband provider.
Even though 68% of the broadband deals currently advertised last just one year or less, only 16% of customers have actually switched their broadband supplier in the last 12 months. Of those who’ve never moved broadband supplier, a quarter (25%) say it’s not worth the hassle or it’s too complicated. Almost one in eight (13%) pay TV customers who’ve never moved say it’s because they’re tied into bundled services.
More than half (51%) of bill payers would be more inclined to switch their mobile, pay TV and broadband if they did not have to contact their current provider and the network they were moving to handled and guided them through the process. Ofcom is already investigating claims from customers that providers make it hard for them to leave, with long call queue times when they are trying to cancel, billing issues, and problems unlocking handsets post contract.
More than four in 10 (41%) bill payers would be more likely to switch mobile, pay TV or broadband if it could be guaranteed they would not be left without service, while more than a quarter (26%) would be more tempted to move if the process happened within a specified time frame.
Ewan Taylor-Gibson, broadband expert at Uswitch.com, says: “While we’re getting the hang of switching some home essentials like car insurance, when it comes to broadband, pay TV and mobile, people are nowhere near as proactive.
“But this is not an open-and-shut case of consumer apathy. Telecoms is the only sector still languishing under a system where the company you are leaving handles the switch. They’re hardly going to fall over themselves to pack you off to a rival provider.
“The good news is that Ofcom is making improvements to broadband switching from 20th June, which will hopefully improve some customers’ experiences of moving to new providers. The bad news is this won’t include mobile, pay TV or Virgin Media’s broadband network.
“Industry-wide changes are needed to have far more of an impact. The price difference between the cheapest and most expensive broadband deals on the market right now is £120 per year, so we’re not talking about small change. Moving providers or moving deals really does save people money, so it should be simple for consumers to do.”
For more information visit www.uswitch.com or call 0800 093 0607
Lucy Smart
Phone: 020 7148 4663
Email: lucy.smart@uswitch.com
Twitter: @UswitchPR
Notes to editors All research was carried out via Opinium Research between 2nd and 5th June 2015 amongst a nationally representative sample of 2,005 UK adults aged 18+.
In the past 12 months, 6% of total broadband customers tried to switch provider but gave up. According to the latest figures from Ofcom, 77% of UK adults have broadband. According to ONS, there are 50,501,583 UK adults aged 18 and over. 77% of 50,501,583 is 38,886,219. 6% of that figure is 2,333,173. Respondents who have switched broadband supplier were asked ‘How much money did you save last time you switched to a different provider? The mean was £36 per year. Multiply 2,333,173 by £36 to get collective annual figure of £83,994,228
Those who have switched were asked ‘in the past five years, how many times have you switched providers for the services below’ – for broadband the mean number of switches was 2, and for mortgage it was 3
Those who have not switched were asked ‘What is the main reason you have never switched provider for the following services?’ – 46% are happy with their supplier, 16% said not worth the hassle, 9% said too complicated, 7% can’t be bothered, 2% said takes too long, 7% said current provider offered a better deal, 1% said provider too pushy when they asked to leave, 2% don’t want the awkward conversation with their current provider, 4% are afraid of being left without service, 10% have multiple services with one provider, 8% said other, 7% don’t know
Respondents were asked when the last time they switched provider was. The percentages of those who switched in the past 12 months were as follows – pay TV 14%, mobile 15%, home phone 13%, broadband 16%
Respondents were asked when the last time they switched provider was. The percentages of those who have never switched were as follows - pay TV 43%, mobile 31%, home phone 32%, broadband 30%. Those who have not switched were asked ‘What is the main reason you have never switched provider for the following services?’ – 13% of pay TV customers said it was because they had multiple services with one provider
Virgin Media UK has 4,563,700 broadband customers according to the Q1 2015 financial results: http://www.libertyglobal.com/pdf/press-release/Fixed-Income-Q1-2015-Release-FINAL.pdf
Those who have switched were asked how much they saved last time they switched provider. The mean was £36. Those who saved £51+ totalled 10%.
http://stakeholders.ofcom.org.uk/consultations/consumer-switching-review/statement/update-jun-15
All respondents were asked ‘Currently, if you want to switch your mobile, pay TV or standalone broadband, you have to contact the provider you are leaving. Would you be more inclined to switch mobile, pay TV or broadband provider regularly if the network you were switching to handled and guided you through the switch without you needing to contact your existing provider?’ – 51% said yes, 21% said no, 27% said not sure
All respondents were asked: ‘Which of the following do you think would make you more inclined to switch mobile, pay TV or broadband provider? – 41% said ‘if they could guarantee I wouldn’t be left without service, 26% said ‘if it happened within a specified timeframe’, 23% said ‘If I was able to switch different elements of a bundled service, 21% said ‘if I received updates telling me when I was out of contract, 21% said if I didn’t have to speak to my current provider’
Based on deals live on Uswitch.com on June 9 2015. Average cost of cheapest standard broadband package across six providers is £287.56 per year including line rental. Average cost of most expensive fibre broadband across six providers is £408.74 per year including line rental. Difference is £121.18
68% of broadband deals advertised last just one year or less, based on deals available through Uswitch.com on June 15 2015
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