The Commerce Commission (ComCom) has called for improvements in the telecommunications switching process after a study revealed that many consumers face challenges when attempting to switch providers. The findings indicate that 50% of mobile switchers and 45% of broadband switchers encountered at least one issue during the process, with a notable percentage reporting dissatisfaction that would discourage them from switching in the future.

Telecommunications Commissioner Tristan Gilbertson expressed concern that 31% of mobile consumers and 29% of broadband consumers have refrained from switching due to the perceived effort involved, despite the potential for better services and prices. The Commission's study was prompted by low switching levels in New Zealand, which are significantly lower than in other markets, such as the UK.

Key barriers identified include a lack of comprehensive protocols between the gaining and losing service providers, leading to problems like double billing and unexpected charges. Gilbertson emphasized the importance of a competitive market where consumers can easily switch providers without facing significant obstacles.

The Commission is working collaboratively with the telecommunications industry to address these issues and improve the overall retail service quality (RSQ) as mandated by the Telecommunications Act. This ongoing effort includes tackling various consumer pain points, such as billing, marketing practices, and customer service.

Submissions on the Commission’s Improving RSQ: Switching Issues Paper are due by April 17, 2025, as the Commission seeks to engage with industry stakeholders to develop a roadmap for enhancing consumer experiences in switching providers.