'Half-speed' broadband con exposed again

By TARA EVANS
Updated: 10:33 EST, 2 March 2011

Broadband customers are being sold super-fast connections that internet providers are unable to deliver, according to Ofcom research.

Instant access: Broadband speeds are less than half as the advertised rate

Data from the communications regulator shows that broadband suppliers are providing an average speed that is less than half the advertised rate.

Ofcom is pushing for new rules to ensure consumers are not mislead by broadband providers, including BT, Sky and O2, advertising.

The biannual study found that the average speed is 6.2Mbit/second, despite the average advertised 'up to' speed of 13.8Mbps.

Unsurprisingly, Ofcom found that 'next-generation' services', such as Virgin Media's superfast broadband, were significantly faster than current copper connections.

Several factors such as location, time of day and the technology used to access the internet will have an affect on the speed of a broadband connection.

Ofcom argue that internet service providers should not be able to advertise a rate that the majority of customers cannot receive. They want providers to introduce a 'typical rate' so that customers are not misled by advertising.

The study looked at 11 packages provided by the seven largest internet service providers (ISPs), representing more than 90% of residential broadband subscribers in the UK.

The results were compiled from more than 18m separate performance tests in 1,700 homes during November and December.

Ofcom: No more misleading adverts

The regulator believes that broadband suppliers need to change the way they advertise speeds to that consumers can compare the differences effectively.

The Advertising Standards Authority (ASA) commissioned the Committee of Advertising Practice (CAP) and the Broadcasting Committee of Advertising Practice (BCAP) to conduct a review of broadband advertising last year after Ofcom requested.

The consultation closed last week and the results are expected for publication later this year.

Ofcom's updated voluntary code of practice for ISPs comes into force in July, with those who have signed up committed to telling new customers the speed they are likely to achieve at home and to try to resolve problems for those whose speed is significantly below the estimate provided.

If the problem cannot be resolved, customers will be able to leave their provider within the first three months of their contract without penalty.

Ofcom chief executive, Ed Richards, said: 'It is encouraging that new technologies are being rolled out across the UK and faster speeds are being achieved. However, the research shows that ISPs 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.'

'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, and that advertisers are able to communicate more clearly how their products compare to others in the market.'

BT was praised for its 'Infinity' product as it has an average upload speed of 8Mb, much higher than any other service measured in the research.

A spokesperson for BT said: 'Broadband speeds vary from line to line and so it is meaningless to use one speed for advertising. That is why we use the term "up to".'

Virgin Media has already rolled out a super-fast broadband service to customers and this is delivered to customers through fibre optic cables.

Jon James, executive director of broadband at Virgin Media, said; 'Ofcom's latest report is yet another damning indictment that consumers continue to be treated like mugs and misled by ISPs that simply cannot deliver on their advertised speed claims.'

'The ASA has already highlighted the critical need for change and today's report provides another clear mandate to stop advertising 'up to' speeds that nobody can actually receive.'

In reaction to the Ofcom report Plusnet promised to double its headline broadband speeds for existing customers, free of charge.

20,000 Plusnet customers, in enabled areas, will be upgraded by the end of this month. The broadband provider estimated that 60% of its customers will be able to upgrade to faster speed packaged within the next year and all new customers will be able to benefit from August.

Jamie Ford, chief executive of Plusnet said: 'We have made a significant investment to upgrade our network in order to give our customers a better broadband service. While an increase in speed can certainly enable consumers, internet users should be reminded that a number of factors can compromise speed including the distance from your telephone exchanges, internal wiring within property and the age of your hardware.'