Ofcom See Positive Impact of UK Mobile Text-to-Switch System

Ofcom has today published a new analysis of the impact their “Text-to-Switch” (Auto-Switching) system for UK mobile operators (e.g. EE, Vodafone, O2 and Three UK), which was introduced in June 2019, had on consumers. Overall, the new system has fuelled a strong increase in consumers switching mobile operators.

The new “text-to-switch” system simplified the whole process of migrating between mobile operators and effectively banned them from charging for notice periods running after the switch date. Mobile providers are also required to give their customers better information about the financial implications of switching, such as any early termination fees.

Ofcom’s latest analysis of this system (here) found that 4.1 million mobile switches, where the customer kept their current number, were completed in the first 12 months after the reforms were introduced – an increase of 600,000 (15%) on the previous year. The number of such switches then further increased to 4.2 million in 2021.

The regulator also estimates that the savings made following the prohibition of notice period charges, as well as the reduction in time and effort spent switching, will deliver consumers a benefit of £130 million over a 10-year period. Ofcom also considered whether the Reforms had an impact on pricing, but so far they “have not been able to establish a link“.

We should point out that, all the way back in 2017, the regulator originally estimated that introducing the new system would cost the industry itself £44m over 10 years, although back then they predicted that it could also save UK consumers around £10m each year.

Overall, Ofcom’s study found that their “reforms were implemented on time and had a greater take-up than we had expected in the 2017 Statement“.

The Text to Switch Process

➤ To request their unique switching code, people must text the word “PAC” to the number 65075 (assuming you want to keep your mobile number). Those who don’t want to keep their mobile number would instead text the word “STAC” to 75075 (STAC means “Service Termination Authorisation Code“) but will follow the same process as below.

➤ The losing provider would immediately respond by text with the relevant number transfer code or with a cancellation code for those who aren’t intending to keep the same mobile number. The PAC code is valid for 30 days.

➤ The text reply will also include important information relating to any early termination charges, outstanding handset costs, or pay-as-you-go credit balances. This can be shared by text, online account or phone call.

➤ The unique switching code (both via the PAC or STAC process) should then be passed on to your new provider at the point you place an order for their service, without the need for a further conversation. Among other things, this helps to avoid double billing during the migration.

➤ Providers would also be required to publish and promote clear guidance to help customers follow the new process and make informed switching decisions.