The Commerce Commission has called on telecommunications providers to improve the industry switching process following a study that showed it was not working as well as it should for consumers.
“We’re concerned that 50% of mobile switchers and 45% of broadband switchers ran into at least one issue when switching and that 29% of mobile switchers and 27% of broadband switchers said the whole experience was so bad they wouldn’t want to switch again in future,” said Telecommunications Commissioner, Tristan Gilbertson.
In addition, the Commission’s latest consumer satisfaction report found that 31% of mobile consumers and 29% of broadband consumers have not switched because it requires ‘too much effort to change providers’, even though switching might mean they could get a better service for a better price.
The Commission conducted its study in response to concerns that switching levels in New Zealand are comparatively low and that consumers are being deterred from moving to competing providers – even in the face of more compelling offers.
“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,” said Mr Gilbertson.
He says a lack of comprehensive protocols between the “gaining” service provider and the “losing” service provider seems to be the central issue with the current switching process, leading to a number of problems, including double billing, unexpected charges, and delays.
“We see an important opportunity for the industry to work towards addressing these issues and we welcome the indications received from the TCF, the telecommunications industry forum, that they’re keen to work with us to explore this further.”
Mr Gilbertson says having a healthy, competitive market means ensuring consumers face no or very low barriers to change between competing products and providers.
“It will take some time to improve the process, but we still encourage consumers 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.”
Submissions on the Commission’s Improving RSQ: Switching Issues Paper are due by 17 April.
