The Commerce Commission is seeking improvements in the telecommunications industry’s switching process after a study revealed that it is not functioning effectively for consumers.
Telecommunications commissioner Tristan Gilbertson noted that 50% of mobile switchers and 45% of broadband switchers encountered at least one problem when switching. Furthermore, 29% of mobile switchers and 27% of broadband switchers reported that their poor experiences would deter them from switching providers again in the future.
Moreover, ComCom’s latest consumer satisfaction report revealed that 31% of mobile consumers and 29% of broadband consumers refrained from switching as it requires ‘too much effort to change providers’. This reluctance persists despite the potential benefits of switching, such as getting a better service at more competitive prices.
According to telco commissioner Gilbertson, “Most consumers switch to get better price, quality or value – so any actual or perceived barriers that prevent switching also prevent important signals being sent to the market in these areas, dampening competition.”
He also pointed out that the primary issue which complicates the current switching process is the lack of comprehensive policies between the new services provider and the old service provider. Thus, causing problems such as unexpected charges, delays, and double billing.
Gilbertson identifies this as an important opportunity for the telecommunications sector to address the existing issues and is encouraged by the Telecommunications Forum (TCF) to work together regarding such matters.
“They’re (TCF) keen to work with us to explore this further,” he said.
Telco commissioner Gilbertson has also underlined that maintaining a healthy and competitive market requires ensuring that consumers encounter minimal or no barriers when switching between different products and providers.
While it will take some time to improve the process, consumers are continuously encouraged to “shop around for the best deal for them and, if they want to switch, work with their new provider to help ensure the process runs as smoothly as possible.”
The Commerce Commission is addressing barriers to switching as part of its ongoing efforts to enhance retail service quality (RSQ), a requirement under the Telecommunications Act.
ComCom’s RSQ initiative targets several critical consumer concerns, including billing, provider switching, marketing practices, contract clarity, installation processes, and service performance.