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Product category: Communications and utilities
News Release from: uSwitch | Subject: Broadband
Edited by the Insidemoneytalk Editorial Team on 18 February 2008

MAC migraine continues for broadbanders
trying to switch

Exactly one year ago, the broadband regulator, Ofcom, introduced new rules to make it easier for consumers to move between broadband companies.

These included forcing companies to supply its customers with a MAC code within 5 working days of its request But new research by uSwitch.com reveals that the rules are failing to deliver

In fact, statistics suggest things are getting worse...

Since February 2007: Nearly 4 out of 10 (38%)[1] broadband switchers have not received a MAC code within the compulsory 5 day period.

1 in 7 (14%)[2] requests for a MAC code have failed to materialise at all.

Less than half (46%)[3] of switchers confirmed that they received a MAC code the first time they asked for it.

Nearly a quarter (24%)[4] had to chase their provider for their MAC code at least once.

Before the Ofcom Code of Practice just 11%[7] of requests for a MAC code failed to materialise, since the regulation this has increased to 14%[2].

A year after compulsory regulations were introduced to improve the experience for the 260,000[5] consumers switching broadband every month a new study, by independent price comparison and switching service uSwitch.com, reveals that the new rules are failing to deliver the results they set out to achieve.

Over the last year, nearly four out of ten[1] requests for a MAC code have not been fulfilled within the mandatory five day period, and more than one in seven requests have simply failed to materialise[2].

The mandatory Code of Practice was introduced by Ofcom on 14th February 2007 in response to complaints that companies were refusing, delaying or even charging to supply a MAC code - required by any customer wishing to move to a new broadband service.

However, the findings show that the targets introduced - for broadband firms to supply consumers with a MAC code upon request, free of charge and within five working days - are not being hit.

The uSwitch study reveals that less than half (46%)[3] of broadband switchers received a MAC code the first time they asked for it and nearly one in four (24%)[4] had to chase their provider at least once.

In contrast, of those who switched before the Code of Practice was introduced, in February 2007, just 13%[6] had to chase their provider to receive their code.

Furthermore, before the regulation just 11%[7] of requests for a MAC code failed to materialise, since the regulation this has increased to 14%[2].

uSwitch.com is calling for: All consumers to receive a MAC code within five working days.

No consumer to have to chase their current supplier for their MAC code.

Regular checks by the regulator and reporting across the broadband industry to ensure the MAC Code of Practice is followed.

Suitable deterrents to be put in place to ensure suppliers adhere to the Code of Practice.

Steve Weller, Communications Expert at uSwitch.com, comments: "It's disappointing that despite the mandatory Code of Practice being introduced, providers are still dragging their heels at the customer's expense.

MAC codes not only enable customers to move to a new broadband service quickly and smoothly, but they ensure that bills from the old supplier stop.

They are so vital that some companies actually refuse to sign new customers up if they don't have a code.

Ofcom needs to address this issue as a matter of urgency and come down hard on providers failing to deliver a MAC code.

If this means issuing financial penalties then so be it." Weller continues: "Prices have fallen 36%[8] over the last four years and the average household can now save over £100[9] a year by switching.

What's more, speeds are now faster than ever.

With so much to gain, it would be a scandal to see an inadequate MAC code process putting consumers off from moving to a better deal." For more information visit www.uSwitch.com or call 0800 093 0607.

Before February 2007:26%[10] of broadband switchers did not receive a MAC code within the compulsory 5 day period.

11%[7] of MAC requests failed to materialise 30%[11] of switchers confirmed that they received a MAC code the first time of asking 13%[6] had to chase their provider for their MAC code at least once* A MAC code (Migration Access Codes) allows a broadband customer to seamlessly switch broadband provider, without any break in service.

The code is similar to a serial number used to identify your broadband connection by the local telephone exchange.

By having a MAC Code, broadband customers are able to switch from one provider to another without problems - in theory.

1.Of 1480 broadband customers surveyed by YouGov on behalf of uSwitch, who switched within the last 12 months and needed a MAC to do so, 569 (38%) confirmed that they did not receive their MAC within 5 days of it being requested.

2.

Of 1480 broadband customers surveyed by YouGov on behalf of uSwitch, who switched within the last 12 months and needed a MAC to do so, 212 (14%) did not receive a MAC at all.

3.

Of 1268 broadband customers surveyed by YouGov on behalf of uSwitch, who switched within the last 12 months and needed a MAC to do so, 577 (46%) confirmed that they received their MAC first time.

4.

Of 1268 broadband customers surveyed by YouGov on behalf of uSwitch, who switched within the last 12 months and needed a MAC to do so, 305 (24%) had to chase their supplier at least once for a MAC.

5.

Of 10285 broadband customers surveyed by YouGov on behalf of uSwitch, 2164 (21%) had switched provider within the last year.

Assuming this is consistent across the 15 million residential and SME broadband connections in the UK, 3,156,053 customers switched within the last year.

Assuming a consistent spread of switching across the way, this equates to 263,004 switches per month.

6.

Of 2760 broadband customers surveyed by YouGov on behalf of uSwitch, who switched over 12 months ago and needed a MAC to do so, 369 (13%) had to chase their supplier at least once for a MAC.

7.

Of 3090 broadband customers surveyed by YouGov on behalf of uSwitch, who switched over 12 months ago and needed a MAC to do so, 330 (11%) did not receive a MAC at all.

8.

Analysis conducted by uSwitch.com.

9.

Switching from the most expensive standalone 8Mb Unlimited broadband to the cheapest 8Mb Unlimited broadband with line rental saves £102 in a year (assuming previously paying standard BT line rental of £11 per month) and gives the added bonus of anytime calls to UK landlines and some international destinations.

10.

£Of 3090 broadband customers surveyed by YouGov on behalf of uSwitch, who switched over 12 months ago and needed a MAC to do so, 795 (26%) did not receive a MAC within 5 days of it being requested.

11.andnbsp; Of 2760 broadband customers surveyed by YouGov on behalf of uSwitch, who switched over 12 months ago and needed a MAC to do so, 835 (30%) confirmed that they received their MAC first time.

12.

Total sample size of YouGov survey was 11,870 adults.

Fieldwork was undertaken between 22nd - 24th January 2008.

The survey was carried out online.

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