Following last month's Net.matters' article which reported Ofcom's figures relating to the UK's internet/telecoms usage, we learn of the media watchdog's concern over the actual broadband speed consumers are receiving from internet service providers (ISPs). Ofcom has expressed its concern that many consumers are signing up to contracts on the basis of what speeds have been advertised in the media. In reality, and once the contract has been signed, the customer is getting a lower speed than originally expected.
Ofcom is attempting to convince ISPs that they should sign up to a voluntary code. This code will endeavour to minimise the irregularity and force ISPs to give potential customers an accurate prediction of the maximum broadband speed they can expect from the service. If the speed estimated is found at a later date to be inaccurate, customers will be offered the chance to downgrade to a lower package agreement.
As well as offering this option to customers, Ofcom also wants ISPs to improve their broadband speed and provide better training for their staff in order that they can address customers' issues over speed provisions. If this voluntary code is not accepted by the ISPs, Ofcom is considering the introduction of a more formal code of practice - with customer satisfaction levels falling this may be the next course of action.
To date 32 ISPs have signed up to Ofcom's code (accounting for 90 per cent of the UK's broadband providers). The majority of these providers advertise that speeds are ‘up to' a quoted megabit per second figure but only refer to falls in this speed provision in the small print and then go on to quote that other factors can affect the supply of the advertised speed. A survey in Which? (August 2007) concluded that a broadband package boasting a speed of 8 Mbps was actually only delivering an average speed of 2.7 Mbps.
Ofcom's Chief Executive, Ed Richard elaborates, “We want to encourage real clarity for consumers about the actual broadband speeds they can receive and this voluntary code is a significant step in this direction."
Which? is more hesitant and expresses its wish to see close scrutiny of the ISPs who have signed up to the code. The consumer body would like to see a more formal regulation introduced if there is a failure by ISPs to abide by the voluntary code. A spokeswoman for Which? stated recently that "The new code won't improve speeds, but it will let customers make a more informed choice about their broadband package, and understand the issues that will affect speed, such as the time of day at which they use the internet."
Ofcom is to review the internet before the end of the year and report back on its findings having undertaken its most thorough study to date.
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