28 November 2011 ~ 0 Comments

MILLIONS OF CONSUMERS TRAPPED BY THEIR MOBILE NETWORK

  • Over half (55%) of UK mobile users are tied into one mobile operator, with locked handsets unable to accept other SIM cards
  • Two thirds (66%) demand clearer information from the big mobile networks on their right to unlock

 

Millions[1] of mobile users are not free to access the best deals due to their handset being locked to one mobile provider, according to a new study by community-led mobile network giffgaff.  

The research reveals that over half (55%) of UK mobile customers – 44 million – own locked handsets, which prevents them from freely switching to use alternative network SIM cards. A probable reason for this is the level of customer confusion surrounding the issue. Almost a third of mobile users (28%) are unsure if unlocking is even legal, and a further 30 per cent wrongly assume their network is doing them a favour by locking their handset to prevent theft.

Despite this uncertainty, there is a clear demand for unlocked handsets with two thirds (61%) of those surveyed  indicating they’d always prefer to buy an unlocked mobile in the future to get the best deals quickly and easily. UK mobile users are also well up to speed on the other benefits an unlocked handset could bring, allowing them to use multiple SIM cards to:

  • Leave their mobile network if they were unhappy with their services quickly and easily (56%)
  • Get cheaper calls/texts on holiday (48%)
  • Use more than one network for call/text services (38%)

 

Its costs consumers £17 on average to unlock their mobile phone, meaning big mobile networks could collectively charge £700 million to unlock all the UK’s locked handsets. However, these charges are in stark contrast to consumer expectations with over half of respondents (57%) believing unlocking should be done for free.  In addition to unlocking charges mobile users are also dissatsified with information on unlocking currently provided by mobile networks (49%) and the government (53%).

With more than two thirds (66%) of mobile customers calling for mobile networks to be required to provide information about how to unlock mobile phones at the point of purchase, giffgaff has decided to take the issue up with OFCOM on behalf of consumers in a letter which calls for clearer and less restrictive SIM-locking practices in the UK. Mike Fairman, CEO of giffgaff, said:

““The practice of selling mobile phones locked to one network, or SIM-locking as it is known in the industry, is clearly having a big impact on consumers ability to get the best deal on the market. Our research shows that given a choice most mobile customers would prefer to have the freedom to be able to switch between networks freely and easily without having to buy a new handset or pay to unlock their current handset.

 

“As giffgaff is community-led, we want to make sure our members are able to make informed decisions, and for that reason we’re supporting this cause by presenting the findings and a call to action to OFCOM, to ask them to create legislation to ensure all mobile operators are providing clear information on unlocking at the point of purchase.  We’ve also created an easy to read unlocking fact sheet available for all consumers to download at www.giffgaff/unlocking.com.”

 

X, uSwitch Consumer Rights Specialist comments:

“giffgaff’s study has unveiled some concerning figures which confirm consumer’s uncertainty around mobile phone unlocking, which is an area that needs addressing immediately.  We support giffgaff’s recommendation to OFCOM, and we will be keen to see a positive outcome for consumers.”

For more information on unlocking and to download giffgaff’s unlocking fact sheet please visit www.giffgaff.com.


[1] 55% of YouGov respondents said they owned a locked mobile phone, multiplied by 80 million mobile phone customers in the UK

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