‘MAC’ migraine in store for Orange customers

At a time when 2.8 million UK broadband customers confirm their dissatisfaction with their broadband supplier, Orange adds further misery by introducing the first switching charge.

From 12th December 2006, Orange will impose a £12 charge for all of its current customers who wish to receive a MAC code more than once, in addition to settling any fees for leaving their contract early. Although Orange is the first, UK consumers could well see a host of other broadband suppliers introduce such charges within months. uSwitch.com is therefore calling for Ofcom to act now before consumers are hit even harder in the pocket.

Steve Weller, Head of Communications Services at uSwitch.com, comments:“It seems ludicrous that given the current low levels of satisfaction, companies are penalising customers for switching to a better deal. It smacks of anti-competitive behaviour and will no doubt come as frustrating news to the one million customers tied into Orange’s broadband service. Customers may have to go back to their supplier more than once for their MAC code as they are only valid for 30 days, so from 12th December customers leaving Orange could well be presented with this new charge.”

With overall broadband customer satisfaction dropping by 9% in the last six months, prices falling by up to 17% over the last ten months and new market entrants aggressively competing for customers with a variety of sophisticated services, now is the time for consumers to review their current deal. Yet leading independent comparison and switching service uSwitch.com reveals that, for the 234,000 people who switch broadband every month, an essential part of the switching process, the MAC code, is not only causing confusion, difficulty and inconvenience, but it is now costing them money – potentially up to £3million a year.

Weller continues: “To add insult to injury, Orange came joint bottom in our recent customer satisfaction poll with one in three of its customers not satisfied with its service. Penalising those customers who are voting with their feet is certainly not going to boost morale across its existing customer base, let alone attract new customers.”

Customers can go down two different routes when they switch broadband. The first, and preferred option is a ‘seamless’ transition from their old provider to their new one, with minimum interruption to their broadband service. The second, less convenient option is to completely close down their existing broadband service, wait for the broadband line to become free, apply to their new provider, and wait potentially several weeks for their new broadband service to be activated.

Weller concludes: “We are encouraged that Ofcom is looking into regulating the MAC code issue, but we urge them to bring this issue to a swift and satisfactory conclusion. We would like to see an enforced code of practice, ideally giving customers ownership of their MAC code as soon as they register with a provider. Should they decide to switch, they would be in a position to quickly and easily give it to their new provider. This ‘single code’ process has already proved itself in the energy industry.

“The broadband market is constantly evolving, and before the end of the year we can expect to see more consumer choice and an enhanced range of services. There are already over 150 companies in the marketplace, and costs for standalone broadband can vary by up to £303 a year between suppliers. This should provide an incentive for all broadband users to review their current package at some point during the next 6-12 months, and we call on the industry to provide them with the freedom to switch seamlessly, simply and successfully.”