£1.85 billion in lost broadband savings as Ofcom fails to enforce faster switching deadline
Ofcom has failed to enforce its 3rd April deadline for One Touch Switch – a new standard to make switching broadband providers easier and quicker
Over 11 million people plan to change provider in the next 12 months[1], but still have misplaced concerns about switching broadband - costing £1.85 billion in overpayments[2]
Top concerns include fear of being cut off (23%)[3] but majority are only offline for around 30 minutes[4]
Uswitch is urging Ofcom to take action and set a realistic new deadline for One Touch Switch to help consumers struggling with rising bills
Uswitch provides advice for consumers on what to expect when switching broadband providers
Misplaced concerns over switching providers is costing 11 million broadband customers[1] £1.85 billion a year in potential savings[2], according to new research from Uswitch.com, the comparison and switching service.
The research was released on the day Ofcom’s One Touch Switch, a new standard designed to make switching broadband easier and quicker, was due to come into effect (3rd April). However, it is clear that Ofcom has failed to enforce this deadline with broadband providers, meaning customers could miss out on potential savings of £162 a year[2].
One Touch Switch is a new broadband standard, designed to make switching providers easier so customers can swiftly move to a cheaper deal, a faster package or change if they’re unhappy with their broadband service.
The new process would also mean switching between physically separate networks, such as from Openreach to Virgin Media, Hyperoptic or CityFibre could be completed seamlessly, allowing consumers to take advantage of more competitive deals.
Once in place, customers would only need to contact a new broadband provider to switch, and would no longer need to speak to their current provider. Changing providers would also be quicker under One Touch Switch, taking just a day where possible, according to Ofcom.
Top reasons broadband customers are put off switching providers include a fear of being cut off (23%), confrontational sales calls (13%) and concerns about being charged twice (12%)[3].
In reality, these fears are largely unfounded. The switching process is usually easy and a new provider will do most of the work, including cancelling a customer’s current contract. Start dates for a new broadband contract can be scheduled up to a month in advance to avoid being charged twice [4].
Despite these concerns, many customers feel they would benefit from switching broadband providers. A third of those surveyed (30%) believe their broadband isn’t as fast as it should be and a fifth (19%) reported they were unsatisfied with broadband dropouts and reliability [6].
Uswitch is calling on Ofcom to set a new deadline to make sure the roll out goes ahead as soon as possible.
Ernest Doku, telecoms expert at Uswitch.com, comments: “With inflation-linked price hikes hitting millions of people this month, the delay to One Touch Switch is a missed opportunity for Ofcom to boost broadband customers’ confidence and help them get a good deal.
“Almost half of broadband customers want to switch right now, but many will miss out due to unfounded concerns and a lack of clarity about the switching process.
“All of these concerns would have been addressed if One Touch Switch had launched as scheduled.
“If Ofcom is serious about supporting consumers, as well as driving take up of new full fibre networks, there needs to be closer supervision of implementation programmes like this, as well as tougher consequences for providers if deadlines are missed.
“Switching broadband providers can save the average household £162 a year. Ofcom cannot allow for further delays at the expense of customers, especially given the current challenges to household budgets.
“What we need now is a tough but realistic new deadline for One Touch Switch and to push providers to make sure it happens.”
Broadband is a necessity for the majority of households across the UK, with consumers relying on it for streaming TV, music and movies, working from home and accessing vital information.
Four in 10 people (38%) said they’d have less choice of entertainment if they were without broadband for 1-2 days. A quarter (24%) reported they wouldn't be able to do their job when working from home [7].
Other concerns included struggling to stay in touch with friends and family (22%), not being able to manage household finances (20%) and losing access to important and up-to-date information (20%) [7].
When One Touch Switch does eventually launch, it will make switching UK broadband providers faster and more seamless, delivering greater choice and value for consumers.
For more information on how to get the best broadband deals visit Uswitch's guide on how to switch broadband.
-END-
Ernest Doku, telecoms expert at Uswitch.com, outlines what to expect if you choose to switch broadband providers before One Touch Switch comes into effect:
Why should I switch broadband providers?
According to the most recent Uswitch customer satisfaction survey, the most common reasons for switching broadband are price and price rises, internet speed, reliability and customer service.
How long does it take to switch internet providers?
The general rule of thumb to connect a new service is two weeks. But that doesn't mean you'll be offline for two whole weeks while the switch is prepared.
You should only expect to spend roughly 30 minutes offline while the switch actually takes place [4]. But if your new connection needs an engineer visit, it may take a little longer.
When cancelling with your current provider, you're usually required to give 30 days' notice, so be sure to plan accordingly.
Do I need to cancel my broadband before switching?
In most cases, the process of switching providers is easy and your new provider will do most of the work for you, including cancelling your current broadband contract.
If you're switching to or from providers with their own network – Virgin Media, Hyperoptic, Community Fibre etc. – you may need to cancel your contract yourself.
Check your T&Cs but most providers require at least 30 days notice. So, to avoid paying twice, schedule your start date with your new provider about a month in advance.
What are the costs associated with switching broadband providers?
Some providers do charge a set-up fee or have start-up costs - for example:
To cover the cost of equipment, such as Wi-Fi routers or TV set-top boxes.
If you need a new line installed – e.g., when upgrading to full fibre or moving to a new network like Virgin Media or Hyperoptic.
The only other costs you might incur when switching broadband are any cancellation or outstanding fees from your previous provider. But if you're out of contract and can time your switch right, there won't be too much to pay.
Can I change my broadband service before my contract is up?
If you want to change broadband service before the initial term of your contract is up, you'll likely have to pay an exit fee. This will often be fairly substantial and is likely to cancel out any savings you'd make by switching early.
The exception to this would be if your provider raises its prices above what’s stated in the terms of your contract, or is unable to provide you with the services you signed up for. If your provider raises prices above what’s stated in your contract, they must give you a one month notice of the new cost and allow you to exit the contract without a penalty if you choose.
If you do switch, you have a 14 day ‘cooling off’ period where you can cancel your request without being charged by your current broadband provider.
NOTES
[1] Opinium surveyed a sample of 2,000 UK adults from February 2023 to March 2023. Results were weighted to reflect a nationally representative criteria. Respondents were asked ‘Are you considering switching your broadband provider in the next 12 months?’ 42% indicated they were planning to switch. 42% of 27.3 million broadband customers in the UK (Uswitch source:) = 11,466,000 customers planning to switch.
[2] 11,466,000 customers planning to switch x £162 per average saving according to saving calculations = £1.85 billion.
[3] Opinium surveyed a sample of 2,000 UK adults from February 2023 to March 2023. Respondents were asked ‘What, if anything, would stop you from switching your broadband provider if you wanted to in the future?’. 23% answered ‘Fear of being cut off and left offline while changing suppliers’, 13% answered ‘Having to face confrontational or awkward phone calls with current supplier’ and 12% answered ‘Worry about being charged twice by my old and new provider’.
[4] Source: Uswitch guide on how to switch broadband.
[5] Source: Uswitch saving calculations.
[6] Opinium surveyed a sample of 2,000 UK adults from February 2023 to March 2023. Respondents were asked ‘Thinking back over the past 12 months, have you experienced any of the following issues with your broadband?’. 30% answered ‘My broadband is not always as fast as I believe it should be’, 19% answered ‘My broadband is not reliable and drops out at times’,
[7] Opinium surveyed a sample of 2,000 UK adults from February 2023 to March 2023. Respondents were asked ‘If you chose to switch broadband provider but were left without a connection for 1-2 days, what, if anything, would be the impact on your day-to-day routine?’. 38% answered ‘I would have less choice of entertainment, such as streaming movies, TV shows and music from online platforms’, 24% answered ‘I wouldn’t be able to do my job, as I rely on a broadband connection while working from home’, 22% answered ‘I’d struggle to talk and stay in touch with friends and family’, 20% answered ‘I wouldn’t be able to pay my bills and manage household finances’ and 20% answered ‘I wouldn’t be able to access important information such as travel and transport updates, and weather updates’.
For more information please contact:
Danny Holden, Red Consultancy on 07838 373742 / Danny.Holden@redconsultancy.com
Ellie Goodwin, Red Consultancy on 07720 613947 / Ellie.Goodwin@redconsultancy.com
UswitchTeam@redconsultancy.com
About Uswitch
Uswitch is one of the UK’s top comparison websites for home services switching, including broadband, mobiles, SIM Only and insurance. We’ve saved consumers over £2.5 billion off their bills since we launched in September 2000.
In 2022, Uswitch launched its free mobile app, Utrack, to help consumers manage their home energy costs. By connecting to their smart meter, users can track their energy usage hourly, get dynamic insights and calculate potential savings with handy tips.
Uswitch is part of RVU, a global group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.
About Uswitch
Uswitch is one of the UK’s top comparison websites for home services switching, including broadband, mobiles, SIM Only and insurance. We’ve saved consumers over £2.5 billion off their bills since we launched in September 2000.
In 2022, Uswitch launched its free mobile app, Utrack, to help consumers manage their home energy costs. By connecting to their smart meter, users can track their energy usage hourly, get dynamic insights and calculate potential savings with handy tips.
Uswitch is part of RVU, a global group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.