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Broadband speed claims misleading the public

Broadband speed claims misleading the public

Tuesday, 27 July 2010

By Seamour Rathore seamour@consumerchoices.co.uk

You’ll be able to get out of your contract more easily if your broadband speed disappoints, under new Ofcom guidelines.

Average UK broadband speeds have gone up in the past year. But the gap between the speed advertised and the actual speed consumers get is wider than ever.

The average actual broadband speed in the UK is now 5.2Mb, up from 4.1Mb last year. However as broadband providers advertise packages with increasingly high “up to” speeds, the gap between what people think they’re getting and what they actually receive is getting bigger.

Average actual speeds are just 45% of advertised speeds

Telecoms regulator Ofcom said the average actual speeds were just 45% of advertised speeds – worse than last year when the speed people actually received was 58% of what was advertised.

The results showed:

  • Up 8-10Mb packages – 3.3Mb actual
  • Up to 20-24Mb packages – 6.5Mb actual
  • Up to 10Mb cable packages eg Virgin Media – 8.7Mb actual
  • Up to 20Mb cable packages eg Virgin Media – 15.7Mb actual.

As a result of the widening gulf, Ofcom is strengthening its voluntary code of practice for broadband providers.

Ed Richards, Ofcom chief executive said: “Actual speeds are often much lower than many of the advertised speeds which makes it essential that consumers are given information which is as accurate as possible at the point of sale.”

In future providers who have signed up to the code will have to do the following:

  • Give consumers a more accurate and consistent estimate of the maximum speed achievable on their line
  • Help consumers improve their speeds
  • Give consumers the option to leave their contracts early without penalty within the first three months if their actual speed is below the estimate given by the provider and the provider can’t improve what they’re getting.

BT Broadband (www.BT.com) - the UK’s biggest broadband provider - defended its service and its head of consumer, John Petter, said the company is delivering on the aspects of the code already: “BT already gives customers the most consistently accurate prediction of the speed specific to their line. We support Ofcom’s voluntary code of practice but want to go even further and are investing further in systems to make our predictions even better - and to have them confirmed in writing.”

Ofcom, in conjunction with the Advertising Standards Authority is also tackling the speeds which broadband providers use in their advertising. Ofcom has recommended that speeds should only be advertised if at least some consumers are actually able to achieve these speeds.

Any provider advertising “up to” speeds should also include a “typical speed range” based on a standard rule to be developed for the industry to adopt.

Virgin Media (www.VirginMedia.com) came out top in the research for having the smallest gap between headline speeds and actual speeds.

Jon James, executive director of broadband at Virgin Media said: “We need to ensure people are not being ripped off and the lack of transparency in broadband advertising risks damaging consumer confidence in superfast broadband. The Advertising Standards Authority has announced a review into the way broadband is advertised and the need for change is now urgent.”

His view was echoed by Michael Phillips, product director at Broadbandchoices.co.uk, who said: “In light of the fact that not a single broadband provider could actually deliver their advertised ‘up to speed’ for the second year running, surely it’s time to abolish this misleading messaging in its entirety and simply opt for the new ‘Typical Speed Range’ figure in all marketing materials.”

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