Broadband speed: ISPs accept 'code of practice'

Telecoms watchdog Ofcom has published a voluntary Code of Practice that sets out guidelines for ISPs to ensure they give customers a realistic estimate of the speed they are likely to achieve from their broadband service.

Consumer discontent has been growing about the all-but-unattainable headline speeds often carried in broadband advertising. The actual line speed an individual customer achieves is likely to be much lower - as factors such as distance from the exchange and line quality affect the speed.

Thirty-seven internet service providers have already signed up to the code, according to Ofcom - with the latest additions joining just this morning. The regulator says this represents more than 90 per cent of UK broadband customers.

ISPs signing up agree to provide customers with an accurate estimate of the maximum speed the line can support at the point of sale; resolve technical issues to improve speed and offer customers the choice of moving onto a lower speed package when estimates prove inaccurate; ensure all sales staff have a proper understanding of the products they are selling; and provide customers with information on usage limits and alert them when they have breached limits.

Ed Richards, Ofcom's CEO, said in a statement: "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."

The watchdog will monitor compliance and said it will be conducting 'mystery shopping' exercises to ensure ISPs are observing both "the spirit and the letter" of the code.

If the voluntary system does not work Ofcom said it will consider introducing regulation. A spokeswoman added it believes the voluntary code of conduct is enough "at the moment", though it urges consumers to complain if ISPs do not deliver on their speed commitments.

The initial list of 32 ISPs did not include Be Broadband - a purveyor of very high speed broadband - but this surprising omission was an admin error on Ofcom's part. The error has now been rectified.

Be Broadband said the code is a step in the right direction for the broadband industry, in terms of cutting consumer confusion and boosting trust, and described it as "a shot in the arm for quality broadband". The ISP added it is in the process of launching a new app on its homepage which will enable customers to discern the actual speed they will receive from Be.

Mobile operator O2, which recently launched a business broadband offering - and jumped into the home broadband market last autumn - also welcomed the code. Mike Fairman, head of O2 Broadband, said in a statement: "O2 is very happy to sign up to the voluntary code of conduct because we believe it's every customer's right to know exactly what broadband speed they will actually get."

But while an estimated line speed is "a useful starting point", Fairman said an independent throughput test to measure each ISP's performance would be the best option, adding that O2 is keen to work with Ofcom to establish such a test.

Broadband's biggest players - including BT, TalkTalk, Tiscali and Virgin - have all signed up to the code, along with a range of smaller players - from Dark Group to Zen Internet. The full list can be found here.

A spokeswoman for Ofcom said it does not have a list of ISPs who have not yet signed up as there are too many broadband players in the market to account for. But retail giant Tesco, which offers home broadband at various price-points, appears to be one absentee - along with mobile operator Vodafone, which offers its mobile customers a home broadband package.

A Tesco telecoms spokeswoman told silicon.com the company is "in the process of making a decision" about signing up to the code but welcomes the spirit of the initiative. She added: "We welcome this kind of initiative. We've led the way in transparency for consumers...Whenever we find that a customer has signed up for a [broadband] package and in fact isn't going to be able to achieve that speed in the area they are living in we will contact them to proactively get them onto the appropriate speed that they can achieve in their area."

Internet service provider trade association, ISPA, which worked with Ofcom to establish the code, said its members support the aims and principle of the code, and added it encourages its members to display "openness and transparency" when dealing with their customers.

ISPA said it would like to see the code extended to include wireless mobile operators that provide broadband over their networks as well as fixed line broadband providers - to ensure minimal confusion to consumers.

Ofcom said it is also undertaking "the UK's most authoritative and comprehensive broadband speed survey" to identify the discrepancy between actual broadband performance and advertised headline speeds. The regulator will publish the results of the survey in the second half of this year.

At the time of publication Vodafone had not responded to a request for clarification of their position.

Earlier this week, broadband advice website thinkbroadband.com published the results of speed tests carried out by its users which suggest faster speeds are harder to achieve in rural areas of the UK.