In July 2016, Ofcom proposed changing the switching process for consumers switching landline, broadband and/or pay TV services between the BT Openreach, Sky, Virgin and KCOM platforms. As a result of the consultation, Ofcom has decided not to intervene. Currently cross-platform switching involves the consumer calling their new provider and their old/current provider to organise the switch. Ofcom proposed changing this to a gaining provider led process or giving consumers the option to switch via a gaining provider led process.
CRA’s team assisting Sky during the consultation included Cristina Caffarra, Geoff Edwards, Simon Chisholm and Gerhard Dijkstra. CRA examined in detail Ofcom’s estimates of the consumer benefits of the proposal and showed that these were likely significantly overestimated. Ofcom’s decision accepted this conclusion, noting that the “quantified benefits to consumers are likely to be lower than originally estimated” and that, partly as a result of this, the benefits of the proposal did not necessarily exceed the costs.
For more details, please see Ofcom’s press release.
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