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New “Text to Switch” service will save Brits £325 million in mobile phone bills every year.

  • Text to Switch heralds huge change that will affect all mobile users

  • Mobile users will be able to change to a new network with a single text message

  • At least 15% of all mobile users are out of contract, resulting in a total overspend of more than £325 million every year

  • Almost 10 million new phones will be sold in the UK this year – with the process greatly simplified by Text to Switch

  • Two in five people say they have experienced difficulties switching in the past

  • New measures will prevent people paying for old and new mobile services at the same time, saving £10 million in unnecessary costs each year

Mobile phone users who are reluctant to brave the process of changing to a new contract or network will find it far easier from this coming Monday (July 1) when the new Text to Switch rules come into effect.

These will allow mobile customers to leave their existing network by sending a single text message, greatly simplifying the whole process.

There are currently at least 15% of mobile users who are out of contract and cumulatively paying £27.4 million more than they should be every month – resulting in a total overspend of more than £325 million a year. These customers will now be able to switch to a new and better deal almost instantly.

Two in five switchers have experienced difficulties in moving to a different network in the past. Some have struggled to take their existing number to their new handset; some have found it hard to navigate websites – while others have simply got too frustrated with automated phone services and being placed on hold by call centres.

With around 10 million people planning to change phones this year alone, the simplified process will make an immediate difference to a large number of consumers.

It will also eliminate the potential for consumers to pay for two different services – their old and their new deals – at the same time. Networks will have to respond to a texted request for a cancellation code or a PAC code immediately, with these codes valid for 30 days. It is estimated that UK phone users double paying for mobile phone services costs £10 million every year.

Richard Neudegg, Head of Regulation at Uswitch.com, comments: “Too many mobile phone customers experience difficulties when changing to a different network.

“It should be networks’ best interests to make switching as easy as possible. If the process is slow and cumbersome people will quickly become frustrated. But a slick and speedy service will boost consumer confidence and increase the likelihood they will switch – a win for consumers and the industry.

“Text to Switch should make things far more simple. People who are out of contract, for example, overpay by an average of £8.17 a month due to their monthly payment still including a handset element, even though the handset has already been paid off. They are essentially paying again for something they already own.

“The theoretical hassle of switching has now been reduced, and the potential savings for millions of customers should make this a no-brainer.

“With end-of-contract notifications also set to arrive in early 2020, mobile users will now find it easier to change to the best deal for them, with Text to Switch making that process even simpler.”

FOR MORE INFORMATION

Rory Stoves
Phone: 020 3872 5613
Email: rory.stoves@uswitch.com
Twitter: @UswitchPR

Notes to editors

What is Text to Switch? Mobile users will be able to switch network with a single text message. A customer texting either for a PAC code or a cancellation code will have to receive these codes immediately from their provider. They are valid for 30 days. When is it live? Networks have had 18 months to implement this service. It is mandatory from Monday July 1, 2019. How does it work? Customers will text one of two memorable short codes, depending on whether or not they wish to keep their existing mobile telephone number. All mobile providers will have to use the same short codes. A customer’s existing provider must immediately respond by text – with either a ‘porting authorisation code’ (PAC) for those wishing to keep their phone number, or a cancellation code for those who want a new number. For businesses, they will get this code within two working days. The provider’s reply must also include important information about any early termination charges, outstanding handset costs, or pay-as-you-go credit balances. The unique switching code will be valid for 30 days. A customer will be able to pass the code on to their new provider at the point they place an order for their new service, without the need for any further conversation. Mobile providers will also be banned from charging for notice periods running after the switch date. This will put an end to people paying for old and new services at the same time – saving UK mobile customers around £10 million in total each year. The process can also be done online. You can find more details in our Uswitch guide.  

  1. Uswitch research. Respondents with a contract that includes a mobile phone were asked ‘When did you sign up to your current mobile contract?’ 15% were identified as being out of contract because when cross referenced with the length of contract they signed up to, they had been ‘in contract’ for longer than that term

  2. Uswitch research. There are 51,767,000 adults in the UK. 94% of adults own a mobile phone = 48,660,980. 47% are on pay monthly contracts = 22,701,967. 15% are out of contract = 3,354,253. Average monthly saving of £8.17 = £27,404,250 total monthly overspend, equivalent to £328,851,000 a year

  3. Uswitch research. Respondents were asked ‘Do you plan on upgrading your phone this year?’ 20% responded ‘Yes’. 20% of 48,660,980 is 9,732,196

  4. Ofcom research

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