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.
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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.
Heads up Mark, in your note at the bottom you’ve put “The full format is “INFO DDMMYY”” but that’s only the case for Three as far as I’m aware – it’s different with every provider. Eg. O2 don’t require anything after PAC/STAC/INFO, and Vodafone’s format is “PAC/STAC/INFO PIN” with PIN being your Voda PIN
Good point Ben.
VirginMobile requires info DDMMYY as well.
This system being setup has been a game changer I must admit, for so many reasons too.
The networks have found ways around text2switch. If you have more than one account they respond with multiple accounts found you need to call customer services. Other thing is when you decide to switch you get outbound retention advisors harassing customers with deals. Surely if you request a pac code with text2switch you don’t want to speak to retentions. You have made the decision to switch
A great concept by ofcom ruined by networks finding ways around the simplifying text2switch system
Ofcom needs involved again to ensure that the networks are being fair
The “more than one account” thing needs to go, unless it’s something linked in a way that you’d need to close both and clear a large balance. But I’m guessing this is going to be a very nuanced area that needs proper thought-out and negotiated scope between networks/Ofcom.
Re: Retention calls; no, I explicitly use my PAC to try and get a better deal. I want EE to ring me knowing I’m on the edge of leaving to offer me a very good deal. If they can’t, it’s irritating.
Credit where credit is due, it has made it much easier to switch. I think Ofcom should next look to E Sims and making that transition easier.
I used this service and got my PAC code and message (from Three) saying if I used the code that day my final bill would be £0. I used it that day and they still tried to stiff me for a final bill of about 4 quid. I complained via email and got a call back and they agreed a ‘good will gesture’ of me not having to pay it although I could prove they were in the wong by sending me an incorrect info in the original text message.
I recently PACd a number out of Three. The ETF should have been around £3 but the text I received said £31. I queried this and was told it was a system error and I definitely wouldn’t be charged £31. They were right but not in a good way as I got charged £93! I currently have a complaint open with Three.
I actually wanted a STAC but the system kept saying my number was on an account with multiple connections so I had to call them. This was true at one time but when I requested the STAC it was the only connection on the account. In any case, every CS person I spoke to (at many departments & levels with over an hour spent on the phone) all claimed not to have any idea what a STAC is so I ended up with a PAC.
Very much like this system. No arguing, no fuss, you might get a call to try to keep you but ultimately you have the code you need to leave. I so wish they’d do this for ISPs too.
TalkMobile seemed very reluctant to use thus services…. Was moving an elderly neighbor off of TM as the service in her house was 2G at best, nothing at worst (she has a 5G phone). I texted PAC to 65075 and on multiple occasions, all i got was ‘Sorry we didn’t understand your message’ when it was completely correct. Ended up doing it through the website which ofc tried to talk me into staying with them and made the option very hard to find.
I also can’t understand how Talkmobile forces you to call them for a PAC. Surely that’s not allowed?
Valid point. Seen it myself where a colleague had to call talk mobile to help a customer get a PAC – they were told to text, colleague said “We have done…three times”
I think it’s a limitation on TM’s services, don’t quote me on that
To the belly achers moaning about multiple connections on one account…
Your text request is for one number and one number only – and yes that is usually for the number you’re texting off of – however the reason you have to call for more than one service is because, statistically, a multiple line account is more likely to remain with provider x, but some networks only release singular PAC codes, and some release numbers under batch PAC codes.
I’ve seen numerous times that EE call customers when a pac is used right away, not requested, used! Let that sink in….
Oh and while we:m’re on the subject of switching, how many times have you been bombarded by your previous ISP after you switch to your new one? I’ve seen it happen and have had it happen.
And as a side note, for every good change that ofcom have implemented, there’s always someone out there going to use it for a less than honest means, that’s why Vodafone, 3, VM ask for date of birth or pin number because of the great SIM swap fraud of 2018/2019 when Lloyd’s Banking system went belly up because of a botched upgrade meaning lots of people got the shaft by unsavoury characters