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Consumer panel calls for code of practice on broadband speeds

Ofcom is asked to resolve disparities in advertised and actual broadband speeds.

The Consumer Panel, which looks after consumer interests in the communications market, has written to Ofcom’s CEO, Ed Richards, recommending a code of practice for ISPs to explain factors that affect line speeds to customers, and advise of actual speeds when lines are activated.

There have been some media reports claiming that customers are being “short-changed” on advertised versus actual broadband speeds, and this provoked anger in some consumers.  However, many factors can affect broadband speeds. Whilst those who are familiar with the technology may understand the limiting factors, many do not.

Speeds can vary not only due to the distance to the local exchange, but also due to contention (many users connected at the same time), network performance further down the line, the performance of the website you are visting as well the time it is being used.

If the line speeds are significantly lower than advertised, customers should be able to move to a different package or terminate their contract under the guidelines.

The letter to Ofcom, written by the Consumer Panel’s chairman Collette Bowe, also recommended that Ofcom makes information about issues affecting broadband speeds available on their website.

In response, Mr Richards, said, “Our initial proposals, on which we will be engaging with consumer groups and industry early in the New Year, are very much in line with the measures set out in your letter.”

The Consumer Panel also wants to work with the Advertising Standards Authority (ASA) to make information about factors affecting speeds more prominent in marketing from providers.

The code of practice recommendations in the letter are:

• Inform consumers, during the sales process, about the theoretical maximum line speed they could expect
• Provide clear information upfront about the factors that can affect line speed
• Contact customers two weeks after installation to provide them with the actual line speed supported by their line
• If the actual line speed is significantly lower than the package they bought, consumers should have a penalty-free choice to move to a different package or, in certain circumstances, opt-out from their contract.

There have been mixed reactions to the proposals.  Some are sceptical about what good the majority of the code of practice will do.

“The first point is a good one and should be easily resolved. The information is available to the ISP, and indeed many ISPs already provide it to potential customers,” explains Michael Philpott, analyst at Ovum.  “We are not sure point 2 would provide any real value, unless it is with regards to perhaps handy tips/information about how home owners themselves may be able to improve performance. 3 & 4 seem to be the main points, and the ones that will potentially cost ISPs the most” he added.

As stated, many ISPs already state that technical factors affect broadband speeds, and many do perform a line check to recommend the most appropriate packages.

Specialist ISP Zen Internet for example, provides good information on the factors affecting broadband speeds on their website.  As well stating the main factors, such as distance to an exchange and the quality of the phoneline, it also warns that speeds will be lower at peak usage times.  Sky does a line check and states what maximum broadband speeds are available on the line before showing a list of products on their website.

So whilst most of the measures seem like a good idea, enforcing them could prove a difficult task.  And if ISPs have to pick up the tab, it is unknown whether they can provide broadband at the cheap prices they currently do.