Broadband users told real speeds
Updated on 05 June 2008
A new code of conduct is introduced by the telecoms regulator Ofcom to ensure that customers get a fairer deal from their broadband provider.
In April research provided to Channel 4 News revealed that most users don't get the broadband speed they think they've paid for.
When it came to "up to eight mega bits per second (mbs)" packages, customers on average only received 41 per cent of the advertised maximum speed.
Ofcom say that they are concerned that customers could be misled or misinformed when choosing their broadband services and that their research shows that customers are more unsatisfied with their broadband connection than ever before.
At the moment, the broadband market is unique in customers not knowing the product they will receive until they've already committed to a lengthy contract.
It's a little like going to Heathrow with the intention of flying to New York and purchasing an airline ticket after being told that the aeroplane can take you "up to New York."
You pay, get on board and once airborne you're told by the pilot that there is only enough fuel to take you to Reykjavik.
Their new code of conduct, which nearly all ISPs including AOL, BT, O2, Sky, TalkTalk and Virgin Media have signed up to, means that customers will now be given an individual estimate as to the speed they could expect to receive.
"We want to encourage real clarity for consumers about the actual broadband speeds they can receive."Ed Richards
At the moment it is possible to sign up for a 16 mbs service but only achieve a speed of seven mbs. And you wouldn't necessarily know that until you've committed to a twelve month contract.
Now consumers will be told the maximum figure their telephone line (and their ISP's equipment) can achieve. This could convince broadband providers to improve their service to stop consumers choosing services that actually deliver slower, but cheaper speeds.
If customers don't receive the speeds they are promised then they will be able to easily move to cheaper services offered by the same provider.
Ed Richards, Ofcom's chef 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."
Ofcom have warned that if ISPs don't keep to the code they will face tougher compulsory regulations.
Separately the advertising standards authority is to examine whether ISPs should advertise theoretical maximum speeds at all.
Ofcom is conducting research on broadband speeds across the country and whether a code of conduct should also be introduced for mobile broadband.
