
Broadband speeds letting UK consumers down
Clear broadband speeds promised
Thursday, 05 Jun 2008 09:33
Broadband providers have promised to start being more honest about advertised internet speeds.
The regulator Ofcom found consumers could be misled or misinformed when choosing their broadband services by ISPs advertising headline speeds that are higher than users can receive in practice.
In a deal with Ofcom and 32 internet service providers (ISPs) a new code of conduct will be established for the industry. The regulator will also be undergoing a national investigation into broadband speeds.
Under the new deal ISPs will provide customers with accurate estimates of their maximum speed when they buy.
Also if internet speeds advertised do not live up to expectations, consumers will be allowed to switch to lower speed, and cheaper, deals.
Clearer information on usage limits will also be provided.
"The ball is very much in the ISPs' court for them to meet the spirit and the letter of the code," a spokesperson for Ofcom said.
Firms have six months to adhere the code – at which point Ofcom will conduct mystery shopper research to ensure the plans are being met.
If the broadband firms fail to meet the demands of the code, Ofcom has warned it will introduce mandatory regulations – as it has done for the sale of mobile phones when a voluntary code failed to change poor sales practices.
Ed Richards, Ofcom’s Chief Executive, said: “Broadband is a thriving market in the UK. We want to encourage real clarity for consumers about the actual broadband speeds they can receive. This voluntary Code is a significant step in this direction."
A spokesman for BT explained the firm was committed to clearer speeds and before people sign up to a broadband deal they are given a speed check.
He added most consumers accept the speed they are offered.
He said: "BT Retail welcomes the Ofcom code of practice on broadband speeds and is committed to fully meeting its requirements. We are also pleased to note that providers of mobile broadband products will also shortly be considered for similar measures.
"BT Retail believes that customer transparency is important, and has always ensured that customers are provided with information about their expected speeds during the sales order journey."
Rob Barnes, head of broadband and mobiles at moneysupermarket.com, said: "It's great news 32 ISPs have signed up to this code of practice, however involvement should be compulsory for all.
"Ofcom says 90 per cent of the industry will be covered, but why should the remaining one in 10 people have to suffer a poorer service or be less advised?
He added: "If adhered to correctly, customers will for the first time be able to get a more comprehensive sales service, with more detailed specification as a matter of course, rather than a salesman flogging a product that could get him the highest commission."