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Broadband switches are foiled by the code breakers 'Trying to get a
Independent on Sunday, The, Mar 23, 2008 by Emma Lunn
THE INTERNET
It should be easy to move to a better deal but customers fear they will lose out as suppliers drag their heels. Emma Lunn reports
There is a price war going on in the broadband market. Provid- ers are scrambling for business as more and more consumers, facing higher food bills and energy prices, look to reduce their monthly outgoings wherever they can.
However, evidence is emerging that rules introduced a year ago to help speed up the process of switching broadband pro- vider are not working.
A new survey by switching service BroadbandChoices.co.uk has found that a third of consumers who want to switch supplier and save money don't do so because they have no faith in the system.
"Many consumers are afraid to switch in case something goes wrong," says Michael Phillips, product development director at BroadbandChoices. "Some are concerned they will be stuck with a hefty bill for the privilege of moving, and that they could in fact be left without a connection for long periods - catastrophic for those relying on it for their livelihoods. Others simply can't be bothered with the headache of call centres, half of which have been shown in our research to offer conflicting advice to customers when it comes to switching."
Last February, the telecoms regulator Ofcom made it compulsory for broadband firms to supply customers with a MAC code free of charge within five days of one being requested. a MAC is like a serial number, used to identify your broadband connection within the local exchange.
If a provider has this code, it can simply move your connection over to its service. The idea was that armed with their MAC, consumers would find it easy to switch supplier.
But research by comparison site uSwitch.com has found that over the past year, nearly four out of 10 requests for a code have not been fulfilled within the mandatory five-day period, and more than one in seven requests have simply failed to materialise.
Steve Weller, communications expert at uSwitch, urges Ofcom to address the issue and to penalise providers that break the rules. "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," he says.
Ofcom claims that it is aware of the problem and poised to take action against firms that fail to issue the codes in time.
"We are still not satisfied that the industry has taken sufficient steps to improve the situation," an Ofcom spokeswoman tells The Independent on Sunday.
"We have put companies on notice that we intend to step up our activities against those providers who fail to comply with the rules," she adds. Ofcom has the power to fine firms up to 10 per cent of their turnover.
If you decide to go ahead with a switch, there are some good deals to choose from at the moment. Broadband users who also have an O2 mobile phone can get 8Mb broadband from the company for as little as 7.50 per month, while non-O2 mobile customers pay an extra 5 a month for the same service.
When O2 broadband launched in November, it was the first to carry out a line check to estimate the speed the customer would be able to receive to ensure they were placed on the correct package. Speeds are checked again a month later to make sure the client is on the best deal for the speed their line can support.
Other competitive deals at the moment include TalkTalk which charges 5.89 a month for up to 8Mb broadband and free evening and weekend landline phone calls. Customers also have to pay a 10.50- per-month TalkTalk line rental.
Other services require a BT line at 10.50 a month (if paying by direct debit and receiving non-paper bills). Plusnet charges 9.99 a month for 8Mb broadband on a one-month contract, while Pipex also costs 9.99 but you need to sign up for a year. Madasafish charges 11.99 a month for the first six months and 16.99 after that, and also offers phone and broadband bundles.
Other factors to take into account when choosing a new broadband provider include set-up costs, download limits and the cost of modems or wireless networking kits.
'Trying to get a MAC code has been a nightmare'
Sangeeta Franklin, a 39-year-old communications manager from Surrey, has been trying to switch her broadband service from Tiscali to Sky since January.
"Trying to get a MAC code from Tiscali has been a nightmare. I rang up several times and they always had excuses why they couldn't give it to me - saying it would be five days, then 10 days. I threatened to go to Ofcom and in the end they said they would email the code to me within five days."
But Tiscali instead emailed Sangeeta's MAC code, account details and phone number to a complete stranger. He called to tell her what had happened. "I flipped. I complained to the Information Commissioner about Tiscali breaching the Data Protection Act."
Eventually the code arrived and Sangeeta passed it to Sky. But then Sky told her BT had cancelled her order as it was doing some work on the line. By the time the work was complete, the code was out of date and she had to start the whole process again. She still doesn't know when she will be able to switch.