Switching mobile phone networks is easier than you think
1 in 4 mobile phone users have switched networks over the last 12 months, reaping in savings of £895 million - or £81 each per year. Yet fear of losing their phone number is preventing 2 million consumers from getting a better deal.
Our love affair with our mobiles is greater than ever before, with Brits spending a staggering 111 billion minutes a year talking on the move. However, new findings from uSwitch.com reveal that this talk isn't as cheap as it could be, with mobile users missing out on a massive £1.5 billion in savings, because, amongst other things, they wrongly believe that they will lose their phone number if they move to a new network.
46 million consumers have a mobile phone and over 11 million have switched network over the last year - an industry churn rate of 24%. Switching has allowed consumers to make average annual savings of £81 and collectively save £895 million over the last 12 months. Yet, despite the relentless pressure on household bills, 40% of mobile users - over 18 million - have never made the move to a new network. While 2.4 million (13%) are afraid that it's simply ‘too much hassle', 1.8 million (10%) fear that they will lose their phone number if they switch from their existing mobile network.
The uSwitch.com poll of over 2,000 mobile users reveals a severe gap in awareness about the number ‘porting' process - the facility that enables consumers to keep their phone number when they change provider. Of the 11 million consumers who have switched networks over the last 12 months, 57% kept their phone number. But of those who didn't, 14% were unaware that this was an option and 23% felt that the process of keeping their number was too long or complicated to bother with. 25% opted for a new phone number to avoid any interruption to their service. All in all, over 13 million consumers would be willing to switch mobile network more regularly if it was easier to keep their phone number.
In fact, all mobile phone users are able to keep their number when they switch to a new network. To do so they must request a special authorisation code, or ‘PAC', from the network that they are leaving, and pass it to their new network. While the UK was one of the first countries to introduce such a system, it now severely lags behind other countries, which are able to complete the process in a matter of hours as opposed to days. Mobile phone users in Australia can transfer their phone number in 3 hours; in the USA it takes 2.5 hours and in Ireland the whole process can be completed in just 2 hours. In worst cases, mobile switchers in the UK have waited up to 6 days for their phone number to be transferred.
The uSwitch.com findings highlight the importance of regulator Ofcom's final decision on improving the process, expected during the first half of 2010. Its own review has revealed fundamental flaws in the existing PAC system. uSwitch.com calls for a new process that minimises inconvenience to the consumer with all arrangements for transferring the mobile phone number to be made by the new network, eliminating the need for the customer to put in any legwork.
Matthew Wheeler, communications expert at uSwitch.com, comments: "Mobile numbers are almost as important as home addresses these days. Anyone who has lost their mobile phone will know what a hassle it is to contact everyone you know with your new number - so of course people want to keep their number when they switch.
"The PAC process that enables this to happen is supposed to be a help, not a hindrance. But the fact that it is preventing so many from taking advantage of better deals is a great concern.
"Ofcom's review has dragged on for years and its final decision on how to make things better cannot come soon enough. We only hope that it clears this up once and for all so that consumers can start reaping the rewards of switching to a better deal. Talk is cheap - but we now want to see some action."
uSwitch.com's top tips for a better mobile deal
There are hundreds of thousands of mobile deals out there so here are some simple steps to guide you through the process:
Whether you want a pay-as-you-go or a contract phone, you'll need to know how many minutes and texts you use each month. You'll also need to check the terms of your existing contract.
There are lots of different ways to find the best deal. Comparison websites such as uSwitch.com enable you to search by different criteria and filter results by what's important - brand, price, even the colour of the handset.
Once you've found a deal and completed the new provider's application process, you can keep your phone number by getting a PAC (port authorisation code) from your existing provider, which you need to pass to the new provider. You will not lose your service during the transfer process.
Recycle your old handset - if you receive a new handset, put your old one to good use and re-cycle it. It's kind to the environment and you earn yourself or the charity of your choice even more cash in the process!