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The communications regulator said that it had put forward the proposals after receiving thousands of complaints from customers who said that they had experienced problems switching companies.
The new regulations are also expected to prompt more users to look for better deals in the fiercely competitive broadband market.
More than 11 million customers in Britain are already signed up to broadband. The main barrier to switching providers has been obtaining the required migration authorisa- tion codes (MACs). Some companies are slow to provide the code to existing customers, often to hinder them switching to another provider.
Elsewhere, consumers have found themselves unable to get in touch with providers, perhaps because the company has closed down or is not answering calls. People moving home have been unable to set up broadband because of technical glitches that show, wrongly, that the building is already connected.
At present the broadband industry provides MACs to users under a voluntary scheme, meaning that providers who make it difficult for their customers to obtain a MAC are unlikely to be in breach of obligations, limiting Ofcom’s ability to take action to protect consumers. The new proposals would make it mandatory for companies to give MACs to customers on request and give Ofcom powers to investigate and even fine providers who do not comply.
Ofcom wants to develop a process by which customers can obtain a MAC from another source if their own broadband provider is unable or unwilling to comply. It will also work with the industry to sort out technical problems that prevent people switching when they move house.
A spokesman for the regulator said that while the majority of users were able to switch smoothly, when problems did arise they tended to be extremely disruptive to customers.
“What concerns us is where providers drag their heels and make it difficult for customers to get hold of a MAC,” he said. “There have been cases where people have become so fed up with waiting that they end up just giving up and staying where they are.
“There is a lot of competition in the broadband market but if customers aren’t able to exercise their choice then it is of limited value.”
He added: “This is especially important now as many customers are coming to the end of their current deal. We saw lots of people signing up to broadband about a year ago and as contracts are often 12 months, there will be many people beginning to look again for a new provider and seeing what deals are available.”
BT, a leading broadband provider, welcomed the proposals. A spokesman said: “BT already fully participates in Ofcom’s voluntary initiative to give MACs and these proposals would help us. It would resolve, for example, the situation where someone moving to a new home finds that the bills have not been paid and is then refused the MAC by the existing provider until the bills have been resolved.
“We spend a lot of time working with customers of ISPs [internet service providers], not necessarily our own, to sort out these problems. If there was a third party from which customers could obtain a MAC other than the existing provider, it would save customers a lot of inconvenience.”
The proposals are subject to a public consultation, which ends on October 5.
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