FOR IMMEDIATE RELEASE
CLARITY FOR CONSUMERS ON BROADBAND SPEEDS
UK'S FIRST AUTHORITATIVE SURVEY UNDER WAY
5 June 2008
A new Code of Practice to ensure that internet service providers (ISPs) offer greater clarity over customers' broadband line speeds was published today by Ofcom.
Some 32 ISPs, covering over 90 per cent of broadband customers, have already agreed to honour both the letter and the spirit of the Code to give consumers a clearer understanding of the speeds they can get and to ensure that they are on an appropriate broadband package.
Ofcom is concerned that consumers could be misled or misinformed when choosing their broadband services by ISPs advertising headline speeds that are higher than users can receive in practice. Ofcom's own research has shown that consumer satisfaction of ISPs has fallen over the last year.
To gain a clearer picture of the issue, Ofcom is also undertaking the UK's most authoritative and comprehensive broadband speed survey to identify actual broadband performance across the country and its relationship to advertised headline speeds.
THE CODE OF PRACTICE
Steps that fixed-line ISPs are required to take under the voluntary Code include:
* providing customers at the point of sale with an accurate estimate of the maximum speed that the line can support, whether it is in the shop, over the internet or on the phone;
* resolving technical issues to improve speed and offering customers the choice to move onto a lower speed package when estimates given are inaccurate;
* ensuring all sales and promotion staff have a proper understanding of the products they are selling so they can explain to their customers the meaning of the estimates provided at the point of sale; and
* providing consumers with information on usage limits and alerting customers when they have breached them.
Ofcom strongly urges all fixed-line ISPs to sign up to this Code and to implement it in full within six months of signing.
Ofcom will monitor compliance, including through mystery shopping exercises, to determine if ISPs are meeting both the letter and spirit of the Code. If Ofcom finds that this voluntary approach is not effective in addressing the issues covered by the Code, it will consider introducing formal regulations.
The Code can be found at: http://www.ofcom.org.uk/telecoms/ioi/copbb/copbb/
Separately, Ofcom will consider whether to extend the Code or develop another Code to cover mobile broadband services.
NEW RESEARCH TO HIGHLIGHT ACTUAL BROADBAND SPEEDS
Ofcom has also launched a programme of independent research to identify the actual performance of broadband for consumers. This is based on a representative sample of users across the country and will identify how broadband speeds and other quality of service measures vary according to a number of factors including region, choice of ISP and by time of day.
The survey will use a representative sample of over 2,000 residential broadband connections attached to specialised monitoring equipment over a six month period and involve tens of millions of speed tests, thereby enabling the most comprehensive survey of actual performance across the UK to date.
On this basis an accurate picture can be established to ensure consumers are aware of the potential limitations of advertised broadband speeds. Ofcom expects to publish a market report on broadband speeds in the second half of the year.
Ed Richards, Ofcom's Chief Executive, said: "Broadband is a thriving market in the UK. We want to encourage real clarity for consumers about the actual broadband speeds they can receive. This voluntary Code is a significant step in this direction."
1. The ISPs that have already signed up to the code are:
* AOL Broadband
* BT Total Broadband
* Eclipse Internet
* Exa Networks
* Firefly Internet
* Freedom2Surf
* Greenbee Broadband
* Karoo
* MacAce.net
* Madasafish
* Netplan Internet Solutions Ltd
* Nildram
* O2 Business Broadband
* O2 Home Broadband
* Orange Home
* Pipex Homecall
* Pipex Internet
* Playlouder.com
* PlusNet Broadband
* Polestar Interactive Ltd
* Pro-Net Internet Services Ltd
* Sky
* Solutios
* Surf Anytime
* TalkTalk
* TalkTalk Business
* Tiscali
* Toucan
* UK Online
* Virgin Media
* Waitrose Broadband
* Zen Internet
2. Ofcom will publish an up-to-date list of ISPs that have signed up to the code. It can be found here: http://www.ofcom.org.uk/telecoms/ioi/copbb/list/
3. Advice for consumers on broadband speeds can be found at:
http://www.ofcom.org.uk/telecoms/ioi/copbb/bbfaqs/
4. Ofcom is the independent regulator and competition authority for the UK communications industries, with responsibilities across television, radio, telecommunications and wireless communications services.
For further details please visit: www.ofcom.org.uk
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