Broadband Guide

Broadband speed advertising - time for change

Monday 21 March, 2011

By Garnet Roach - garnet@consumerchoices.co.uk

Broadband providers could soon be forced to advertise more realistic speeds instead of the “up to” headline speeds they use today.

Telecoms regulator Ofcom is proposing moving to a “typical speed” that at least 50% of customers can actually get. But while consumer groups - and some providers - support these changes, the UK’s biggest broadband provider, BT (www.BT.com), is arguing against the move.

Advertised broadband speeds vs actual download speeds

Broadband users only get 45% of their advertised speed, according to research by Ofcom in March 2011.

And although the 6.2Mb national average is more than enough to surf the web and watch the BBC iPlayer, the gulf between what is advertised and what consumers actually get leaves many people disappointed.

So while headline speeds have been increasing - with superfast broadband packages delivering between 78-96% of their advertised speed - broadband satisfaction is at a four-year low, a study by Broadbandchoices.co.uk in March 2011 revealed.

Why we need a change

Ed Richards, Ofcom chief executive, welcomed the new technologies and faster broadband speeds being rolled out across the UK, he said that providers still need to do more “to ensure they are giving customers clear and accurate information about the services they provide and the factors that may affect the actual speeds customers will receive”.

He added: “It is important that the rules around broadband advertising change so that consumers are able to make more informed decisions based on the adverts they see.”

Ofcom recommends that:

• When advertising broadband packages, providers should use a typical speed range that is actually achieved by at least half of customers
• If a maximum “up to” speed is used in an advert, then the typical speed range must have at least equal prominence
• Any maximum “up to” speed used must also be a speed that can actually be achieved by a material number of customers. When Ofcom carried out the same speed research last year, absolutely no copper wire ADSL customers were getting their advertised speed
• Providers should be clear that they can confirm the expected speed that customers will receive when buying their service
• Where it is the case, suppliers must also explain in the body of the advert that actual speeds depend on line quality and distance from the exchange, for example with ADSL broadband packages
• Any reference to broadband speed in advertising - words such as “fast”, “superfast” or “lightning” - must be accompanied by a typical speed range, which should have at least equal prominence to these words.

Virgin Media (www.Virginmedia.com), which delivered more of its advertised speeds than any other provider, is unsurprisingly a big supporter of the plans.

Jon James, executive director of broadband at Virgin Media, said: “Consumers continue to be treated like mugs and misled by ISPs that simply cannot deliver on their advertised speed claims.

“Broadband providers have to base their speed claims on the typical real world speeds being delivered to customers so people know exactly what to expect and what they’re paying for.”

An argument for keeping ‘up to’ advertising?

However, BT, which has more than five million broadband customers, has argued against changing the way broadband speeds are advertised, even going as far as claiming that typical speed ranges will actually damage digital inclusion.

John Petter, consumer managing director at BT Retail, said: “Moving to typical speed ranges will potentially be highly misleading as the average performance will vary depending on where people live.”

“Broadband speeds vary from line to line, and so it is meaningless to use one speed for advertising,” continued Petter. “That is why we use the term ‘up to’. The most important thing is that customers are told what speed their line is capable of supporting at the point of sale - this ensures that customers receive what they are promised,” he explained.

And TalkTalk (www.Talktalk.co.uk), the UK’s third largest broadband provider with more than four million customers, agrees. A spokesperson said: “We don’t think average speeds mean much for individual customers; they are concerned with the speed they get and how this can be improved. This is why we give every new customer an estimated speed before they sign up, based on their line, where they live and proximity to their local exchange,” she explained.

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