Archive for May 14th, 2011

Consumers ‘held hostage’ by SIM-locked phones

Mobile users are being “held hostage” by their provider because of the cost of unlocking their phones to switch to other providers, a recent report claims.

The report shows that the majority of people using unlocked phones is due to “consumer confusion” surrounding the issue, with almost a third not sure if it is legal to change to a different provider.

The survey, which was carried out by YouGov amongst 2019 adults on behalf of MVNO GiffGaff, showed that consumers are missing out on the “best deals” and that they wanted more information on how to “unlock” their mobile when they bought them.

Our old friend Mike Fairman, chief executive of giffgaff, said: “Consumers risk being held hostage by their mobile network to the tune of £400 million simply to switch networks with their existing phone. The practice of selling mobile phones locked to one network, or Sim-locking as it is known in the industry, is having a big impact on consumers’ ability to get the best deal on the market.”

The report also claimed that consumers were currently charged around £17 to switch networks meaning this service alone could be worth millions to the mobile phone industry.

Posted by: Tracy