14 March 2008
We received a petition asking:
"We the undersigned petition the Prime Minister to instruct Ofcom to force ISPs to advertise a typical rate for broadband subscriptions, not just a theoretical ‘maximum’ rate."
Details of Petition:
"Ofcom currently permits ISPs to advertise theoretical ‘maximum rates’ for broadband connection, with most ISPs burying in the small print the condition that consumers can only expect speeds ‘up to’ this maximum. No information is available on what consumers can expect in practice, despite ISPs having access to tests that would give a much clearer idea of potential speeds to a household, based on distance from the local telephone exchange. We think Ofcom should oblige ISPs to provide clear information about the actual speed they are likely to receive in the form of a ‘typical rate’, much like that published by credit card and loan providers. This information should be made clear prior to subscription. Ofcom should introduce an independent broadband speed testing service for consumers, so that they can compare advertised maximum rates against actual speed. We want Crystal Clear Broadband contracts for UK consumers."
Read the Government’s response
The Advertising Standards Authority (ASA) is the advertising industry body responsible for regulating the way in which Internet Service Providers (ISPs) advertise their products. The ASA have ruled that ISPs can advertise theoretical maximum speeds but stipulated that such advertisements must be accompanied by a caveats indicating that they are ‘up to’ speeds.
The Office of Communications (Ofcom), the independent regulator for the UK communications industry, is aware of concern about advertised headline broadband speeds against actual speeds delivered. Ofcom has expressed concern to the ASA, and is in discussion with industry and consumer organisations to look into the other options that might be available to provide greater clarity for consumers and reduce the possibility of them being misled.
Ofcom’s work in the area will include new research on comparing quality across ISPs, which will add to existing sources such as recent Which? research. Ofcom will consider a range of possible measures, including different ways to improve the information available to consumers at point of sale and in advance of purchase decisions.