Broadband News

Improve labelling of download limits says ISPA

(05-05-07) - Internet service providers need to do more to make sure that customers are aware of their download caps and fair usage policies according to the Internet Service Providers Association (ISPA). (Read our consumer guide on understanding a Fair Usage Policy).

A survey by Ofcom (2006) showed that 77 per cent of users are unaware of any limits on their package, with many having signed up for an “unlimited” service, or not read their terms and conditions.

However the majority of “uncapped” broadband packages are simply subject to a fair usage policy instead, which can affect high-end users in exactly the same way as one with an advertised download limit, resulting in fines and bandwidth reductions.

It is essential that providers make their customers aware of the “consequences of breaking their bandwidth caps or fair usage policies prior to a customer signing an agreement” said the ISPA, adding that they should “incorporate any bandwidth caps, allowances or acceptable and fair use policies in their general sales and marketing literature, and on their websites.

“Information should also be given to the customer at the point of registration for a service.”

Chris Eagle, Commercial Manager at BroadbandChoices.co.uk said: “Packages should not be advertised as “unlimited” unless they really are, and that means no caps or fair usage policy.

“Any limits should be clearly marked – not just in the small print – and customers should be aware of the penalties; whether they will be charged for exceeding limits, or if they will have their bandwidth restricted.”

Although it is only currently a small minority of customers who use most of the bandwidth – 10 per cent of PlusNet users download twice as much as the other 90 per cent (Ofcom, 2006) – Mr Eagle warned that this could change. (visit www.PlusNet.com)

Click here to compare download limts for UK broadband packages.