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Ofcom code of practice - broadband speeds

Ofcom code of practice: broadband speeds

Updated: Tuesday 04 January, 2011

By Garnet Roach garnet@consumerchoices.co.uk

Broadband speeds are improving, with fibre optic cable networks allowing providers to offer speeds of up to 40Mb, 50Mb and even 100Mb broadband.

But despite this, the gap between advertised speeds and what consumers actually get is bigger than ever, revealed telecoms regulator Ofcom in July 2010. Average actual download speeds have increased by 15% over the past year and now stand at 5.2Mb - up from 4.1Mb in July 2009. But this is still only 45% of the average advertised speed.

In light of this, Ofcom is introducing an updated code of practice, in an attempt to address the gulf between advertised speeds and what consumers actually get. But exactly how effective will the new code be?

The new Ofcom code

Under the code, broadband providers are required to “give consumers a more accurate and consistent estimate of the maximum speed likely to be achievable on their line”. This will depend on a number of different factors, including line length, because the further you go from the local telephone exchange, the slower your broadband connection becomes.

One of the major changes that Ofcom is making to its voluntary code is designed to help consumers deal with slow broadband speeds. The change, which will come into effect in July 2011, will mean that consumers with “significantly low” broadband speeds will be able to cancel their contract - without penalty - within three months of signing up.

But this definitely won’t be a fix-all solution.

What is “significantly low”?

One of the major flaws in Ofcom’s new code is the use of the term “significantly low”. While the regulator does have a specific definition for what it classes as “specifically low”, this is confusing and only really helps a very small number of people struggling on the very slowest speeds.

Line length is the biggest factor affecting broadband speeds, and Ofcom estimates that a customer signed up to a 20Mb or 24Mb broadband package, living 2km from the local telephone exchange, should get around 14Mb.

But “interference” also slows down connections; “at 2km, 60% of connections have line speeds between 4.5Mb and 11.5Mb”, says Ofcom.

Other factors, such as traffic management and network congestion could reduce this figure even further.

The cancellation clause

Two main factors determine exactly what “significantly slow” means in terms of your connection; the speed you get and the speed that other “similar customers” receive. “Similar customers” are those signed-up to the same provider as you, and who live the same distance from the local exchange.

Your provider will give you a broadband speed estimate before you sign-up, based on the speeds that these similar customers receive.

For example, if you live 2km from your telephone exchange, you should be quoted between 4.5Mb and 11.5Mb - which is what 60% of similar customers are receiving, according to Ofcom.

In order to be able to cancel your contract within three months, your speed must fall into the bottom 10% of what other similar customers are getting - so less than 3Mb in this case.

But because so many factors affect the “trigger” that allows you to cancel your contract because of slow speeds, each case is different and you would still need to take up any issues you have with your provider.

You can only cancel within three months

The second issue with the latest changes to Ofcom’s code is the fact that consumers suffering from “significantly slow” speeds can only cancel their contract within the first three months.

This means that anyone who experiences problems at a later date - which can sometimes happen - has no choice but to stick with their provider or take the official complaints route in a bid to solve their problems.

Advertised broadband speeds

No consumers signed up to an ADSL 20Mb broadband or 24Mb package actually received an average download speed of more than 18Mb, Ofcom’s research revealed.

Almost two-thirds had an average download speed of 8Mb or less, while only 2% received average download speeds of more than 14Mb - raising the question of exactly how providers can get away with advertising impossible “up to” speeds.

Ofcom is looking into the issue with the Advertising Standards Authority (ASA) and the Committee on Advertising Practice (CAP) who are currently reviewing the problem.

Ofcom has recommended that:

  • Speeds should only be advertised if at least some consumers are actually able to achieve them
  • Providers advertising an “up to” speed, should also include a “typical speed range”, similar to the APR in finance or the MPG in motoring.

Changing the way that broadband speeds are advertised would curb disappointment when customers don’t get the kind of speeds they're expecting, and the Communications Consumer Panel has called on the government to get involved.

But BT broadband (www.BT.com) has pointed out that average speeds are not the best way of measuring its network since it is required to offer internet access even to the most rural areas where long telephone lines can make speeds painfully slow.

It’s a voluntary code

Finally, the code is voluntary. This means that although the UK’s biggest broadband providers have signed up, there is nothing forcing other suppliers to follow suit.

Ofcom has also pointed out that while some 25 providers have adopted the code, this doesn’t mean that they always comply with it.

Broadband providers

The following broadband providers have signed up to the voluntary code. However, Ofcom does point out that this does not guarantee compliance with the code.

  • BE broadband (www.Bethere.co.uk)
  • BT broadband (www.BT.com)
  • Eclipse Internet (www.Eclipse.net.uk)
  • O2 broadband (www.O2.co.uk)
  • Orange broadband (www.Orange.co.uk)
  • Plusnet broadband (www.Plus.net)
  • Sky broadband (www.Sky.com)
  • TalkTalk broadband (www.Talktalk.co.uk)
  • Virgin Media (www.Virginmedia.com)
  • Three (www.Three.co.uk)
  • Aquiss Internet
  • CI-Net
  • Demon
  • Fast.co.uk
  • Firenet Internet
  • GreenISP
  • IDNet
  • Karoo
  • MacAce.net
  • Netplan Internet Solutions Ltd
  • Rutland Telecom
  • Solutios
  • Stream Networks Ltd
  • Vivaciti
  • UK Online
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