Broadband customers seeking to switch from Orange to a new provider face a new penalty charge. The French group is preparing to introduce a £12 charge for providing the “mac” code, which allows easy transition to a new provider.
Orange is also to introduce for the first time a £5 charge for broadband customers who do not pay their bill on time.
The group, which has one million broadband customers, said that a charge for the switching code would apply only on repeat requests. The first application for a migration authorisation code, or “mac”, would continue to be free. The charge is targeted at customers who receive a code but allow the 30-day usage period to elapse, then request a new one.
A spokesman said: “Each time we have to generate a code it costs us.”
The announcement is likely to face opposition from consumers, many of whom have found that the plethora of “free” broadband offers have not lived up to the hype.
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A survey last week from uSwitch.com, the group that provides independent comparisons of services and prices, found that while low-cost broadband offers had encouraged thousands to sign up, customer satisfaction among users had dropped by 9 per cent in the past six months. Orange was named in the survey as one of the worst offenders.
The charge could also put Orange at loggerheads with Ofcom. The regulator is seeking ways to make it easier for consumers to switch broadband providers and a key area of focus is the “mac”.
Ofcom has found that a significant number of customers face disruption with their broadband service because of difficulty obtaining a “mac” from their existing supplier. The regulator has proposed new rules that will include the banning of charges for providing switching codes to broadband customers. A spokesman for Ofcom said: “We are considering stakeholders’ views on this proposal and intend to publish a full statement before the end of the year.”
However, broadband companies are allowed to introduce charges to cover the costs of customers leaving before their contract term is up.
In a letter to customers, Orange says: “You may want a ‘mac’ code, which will cost £12 to cover the processing fees. Don’t worry, we won’t charge you for the first one. Other than that, there’ll be no charge to close your account.”