Ofcom takes the lead to stop broadband baddies

Communications watchdog Ofcom plans to introduce new regulation that will make it easier for consumers to switch broadband providers.

Currently, the migration of users from one vendor to another is governed only by a voluntary initiative, whereby the customer requests a migration authorisation code (MAC). This unique code, when passed onto the new service provider, eliminates, or at very least minimises, changeover disruption.

However, as the process is not mandatory, some service providers don't comply. This makes it difficult for Ofcom to step in to sort out issues and has resulted in thousands of complaints from disgruntled members of the public.

To remedy the situation, the watchdog has launched a consultation process outlining its proposed approach. It plans to introduce a General Condition with the aim of minimising the issues consumers currently suffer when they select or change suppliers.

If the intended regulations come into force, all broadband providers will have to provide customers with MACs when requested.

"New regulatory and industry initiatives - for example, the unbundling of the local loop - have created a competitive market in broadband, resulting in the availability of cheaper, better and faster services. However, if consumers are to continue to see the benefits of competition, they must be able to shop around - and, once they have found a good deal, to switch broadband providers without undue effort, disruption or anxiety," said Ofcom in a statement.

"Where consumers don't have access to processes that let them switch easily, they may suffer inconvenience and distress. If consumers start to think that switching providers carries this kind of risk, the competitive process can be dampened in a way that means all consumers will suffer."

"Competition is only effective where customers can punish 'bad' providers by taking their custom elsewhere, and reward 'good' providers by staying where they are. If switching is difficult, competition may, over time, fail to ensure that consumers receive the benefits they should be able to expect."

The deadline for responses to the proposed changes is October 5. Ofcom will also launch an additional consultation early next year to identify the best way of helping consumers in circumstances where providers still fail to deliver a MAC.

Ofcom's announcement comes one month after it removed the price controls it first imposed on BT more than two decades ago. It also vowed to reduce consumer numbering confusion by introducing a new 03 prefix and removing 070 numbers.

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