MAC code crisis remains unresolved despite new rules by Ofcom

Following uSwitch.com’s warning that the MAC code system has reached crisis point, Ofcom introduces new rules it claims will ‘ensure consumers are able to switch to a different broadband provider quickly and easily.’

Steve Weller, Head of Communications Services, at leading independent comparison and switching service uSwitch.com comments:

“The 234,000 consumers switching broadband every month have a right to do so simply and free of charge and with this in mind we are pleased that Ofcom has taken a step forward towards resolving the MAC code issues. However, the new rules fail to go under the skin of the MAC code and address - let alone resolve - the true issues they present to the broadband industry.

“The most crucial matter, that Ofcom has failed to address today, is how MAC codes can be successfully transferred from one Local Loop Unbundled (LLU) provider to another. This will become an increasingly troublesome issue next year as the number of LLU connections is set to double from one to two million. While the transfer process works smoothly for customers moving from one IPStream service to another – such as from BT to Tiscali, they experience difficulties when attempting to switch from an LLU service to an IPStream service, or vice versa. Alarmingly, the broadband providers themselves become confused when it comes to transferring a MAC code between two LLU networks.

“We are pleased to see that, as of 14th February, broadband providers will have to supply a MAC code upon request and free of charge. However, it’s unclear whether the code will be free no matter how many times it is requested, or just for the first time. We recently revealed that Orange currently stands to make up to £3million a year following the introduction of a £12 charge to customers who request a MAC code more than once. It’s our hope that the new rules will halt this scandalous charge in its tracks.

Weller concludes: “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 companies offering new and enticing deals, now is the time for consumers to review their current deal with a view to switching. We urge the industry to remain focussed on this, and look forward to a standard practice that supports broadband customers switching from one provider to another, quickly and easily regardless of what network they are on, with strict penalties for the broadband companies that do not support this practice.”

USwitch’s MAC Code Warning: The Real Issues Facing MAC Codes

Orange set to penalise customers who switch away, potentially generating up to £3 million a year with new migration (MAC) charge– uSwitch.com warns other providers may follow suit

BT to levy £33.75‘cessation charge’ to providers not issuing MAC codes – this charge could be passed on to customers

Major providers on local loop unbundled (LLU) networks unable to accept MAC codes from customers arriving from other rival unbundled networks

1 million households already on LLU broadband, with this figure set to double by end 2007

TalkTalk and PlusNet failed to sign up to existing voluntary MAC code ofpractice

234,000 consumers switching broadband every month

2.8 million broadband users not satisfied with their service