28% switched mobile phone provider last year

MORE than a quarter of Irish people changed their mobile phone provider last year.

A survey by the National Consumer Agency (NCA) found people are shopping around for better value before entering into contracts for electricity, broadband and mobile phones.

“The additional competition in the electricity market, with Bord Gais and Airtricity entering the frame, has provided Irish consumers with more choice and the option to compare prices and change supplier if they so wish,” said Ann Fitzgerald, chief executive of the NCA.

More people are changing their broadband internet provider than ever before, with 14% of consumers saying they have done so in the last 12 months, an increase of 8% in the last year.

“There is a huge appetite for value among Irish consumers,” said Ms Fitzgerald. “With budgets tightening due to the economic downturn, savvy consumers are examining the options and value available to them, switching to get the best deal where possible and the NCA is happy to report they are mostly saving money as a result.”

A survey commissioned by the NCA and carried out by Amárach Research shows that four out of five Irish consumers who have switched service providers did so in order to get a better deal, with the same number saving money.

Switching mobile phone provider remains at the top of the switch list with more than one in four (28%) of Irish consumers saying they have changed provider. Young people are the keenest when it comes to getting best value for their mobile phone, with 41% of 15-24 year-olds switching.

“People remain very much influenced by friends and colleagues and our research indicates that 60% of those who have switched mobile phone provider did so as a result of recommendations,” said Ms Fitzgerald.

“The number of people who have found switching to be an easy process is up 7% on last year which is very positive and it indicates that service providers are facilitating customers’ needs and understand the importance of delivering a quality service,” she added.

The areas where changing of providers has increased include the car insurance market; electricity supply market; the fixed line and mobile phone line markets and home insurance market.

Significant changes are also evident in the electricity market, where 4% of customers have switched to An Bord Gais over the past 12 months. Some 12% said they plan to change their electricity supplier in the coming year.

Ms Fitzgerald’s colleague, Fergal O’Leary, said increases in consumers’ willingness to change are a positive market development.

“It shows people are prepared to take action if they spot a bargain in the market.” he said.

“The broadband and mobile phone areas are traditionally very competitive but the increase in people moving shows when a good deal arises more people are happy to put in the effort to make use of that.”

The report, plus tips on switching, can be viewed on the NCA’s website, consumerconnect.ie.