Survey shows one in five people given correct advice on switching mobile provider

Ref: 48/01
Date: 11 July 2001

New arrangements to make it easier for consumers to keep their mobile telephone number when changing networks have been welcomed today by Oftel.

Following an initiative driven by Oftel, a new procedure that allows consumers to transfer their number quicker and easier than before has been agreed by the four network operators. The improved process is due to be introduced on 1 October.

A mystery shopper survey conducted on behalf of Oftel has revealed that only one in five people who enquired about transferring their mobile number were given the correct advice on all the processes involved.

BT Cellnet, One2One, Orange and Vodafone have said their new arrangements will drastically reduce the time taken to transfer, or ‘port’, a number from twenty-five to five working days. Consumers will also be able to choose the date on which they switch their number.

Commenting on today’s announcement, David Edmonds, Director General of Telecommunications, said:

" I have been seriously concerned at the inadequacy of existing arrangements for porting mobile numbers. I therefore pressed the operators to provide a simple and cheap way to port numbers.

" Oftel welcomes the new arrangement by the four mobile network operators. This means that from October, consumers can switch their mobile numbers between networks easier and faster.

" Improving the transfer process will provide an opportunity for more consumers to retain their mobile number and maximise the benefits of switching between operators to get the best deal.

" This new arrangement is an example of telecoms operators working together. Oftel’s strategy encourages self and co-regulation and I am pleased to see this initiative will deliver benefits to consumers."

The need for such action is underlined by results from an independent mystery shopper survey that looked at whether consumers were being given the correct advice when enquiring about transferring their mobile number.

Conducted in 300 retail outlets and call centres of mobile service providers, the research shows that only one in five people were given correct advice when asking whether they could transfer their number, the costs involved and the length of time the process would take. Similarly, almost one in three consumers were told that it was not possible to keep their number or staff did not know whether it was possible.

David Edmonds added:

" This mystery shopper exercise has revealed some worrying findings. For example, four out of five customers were given wrong or no advice about whether they could transfer their mobile number and the costs and timescales involved.

" Oftel wants to ensure that consumers are well informed and aware of the choices available to them so I am writing to the mobile operators asking them to comment on these findings and set out their plans for improved performance."

The survey also looked at SIM locking which is the practice of mobile operators locking handsets to one particular network. The results show that less than half of the consumers surveyed were told they could keep their handset when changing supplier. Current guidelines allow operators to lock handsets, but the results of the survey will feed into Oftel’s current mobile market review.

A statement of compliance for fixed number portability has also been published by Oftel. European legislation states that fixed operators have to allow consumers to retain their telephone number when switching supplier. Recent consumer research suggests that whilst operators are complying with the legislation, further work by the industry is required to establish an improved fixed number portability regime.

Notes to Editors:

1. For further information about the new mobile porting arrangements please contact Christopher Webb at the Federation of Communication Services’ (FCS) Press Office on 01672 516000 or Frank Stuart-Brown, Chairman of Operator Policy Forum on 07010 700 121.

2. Mobile Phone Number Portability and SIM Unlocking Research is available on Oftel’s website at www.oftel.gov.uk/publications/research/2001/myst0701.pdf. Hard copies are available to the press from Oftel's press office on 020 7634 8991, or to the public from Oftel's Research and Intelligence Unit on 020 7634 8761.

3. Oftel’s Fixed Number Portability Compliance Statement is available on Oftel’s website at www.oftel.gov.uk/publications/numbering/stoc0701.htm. Hard copies are available to the press from Oftel's press office on 020 7634 8991, or to the public from Oftel's Research and Intelligence Unit on 020 7634 8761.

4. Mobile public telecommunication operators’ licenses require them to provide mobile portability to other operators on a reciprocal basis. This regulatory obligation came into force on 1 January 1999 and enables consumers to keep their mobile phone number when switching between suppliers. UK customers were the first in the world to be able to do this. Since then, nearly a million mobile numbers have been ported.

5. Mobile phone companies initially put in place a fax based process to support mobile number portability as such a system was inclusive of all mobile airtime service providers and did not involve significant investment at a point when the demand for portability could not be accurately predicted. The industry recognised at a fairly early stage that a fax based process would need to be replaced by a faster, more reliable and robust system and has been working toward an electronic system for a considerable period of time.

6. Oftel’s strategy is one of ‘appropriate regulation’. Appropriate regulation means regulation adjusted to the level of competition in the market and focused on the area of concern. Too much regulation, as well as too little regulation, can work against consumers’ interests by deterring investment and innovation.

7. The Federation of Communication Services (FCS) is the representative body for the UK mobile communications services industry and provides a central focus for developments, issues and legislation affecting all aspects of mobile communications.