UK broadband firms dramatically overstating speeds

Broadband consumers are not getting a fair deal, according to Ofcom

Internet service providers (ISPs) routinely overstate broadband speeds, and rarely provide anything near the advertised capabilities, according to new research by Ofcom.

The UK Broadband Speeds May 2010 research (PDF), conducted in partnership with broadband monitoring firm SamKnows, found that most packages hardly ever reach the 'up to' speed, although those on cable services fare better and Virgin Media is the most consistent performer.

Ofcom said that Virgin Media's 'up to 10Mbit/s' and 'up to 20Mbit/s' cable services offer twice the average download speeds of DSL, while its 'up to 50Mbit/s' cable service was the fastest service tested, delivering average download speeds of around 36Mbit/s.

Average broadband speeds in the UK have increased from 4.1Mbit/s to 5.2Mbit/s since April 2009, while 24 per cent now have speeds of over 10Mbit/s, up from eight per cent.

Jon James, broadband director at Virgin Media, used the announcement to attack the firm's rivals.

"It's clear that our DSL competitors aren't keeping up with promises of 20Mbit/s broadband. No DSL customer receives 18Mbit/s, and only two per cent receive over 14Mbit/s," he said.

"We need to ensure that people are not being ripped off, and the lack of transparency in broadband advertising risks damaging consumer confidence in superfast broadband."

BT, Virgin's main rival, defended its network, arguing that it gives customers "the most consistently accurate prediction of the speed specific to their line".

"We are investing in systems to make our predictions even better and to have them confirmed in writing," a spokesperson said.

BT also claimed that its £2.5bn investment in superfast fibre broadband will provide consumers and businesses with access to a better network than Virgin's.

"Our investment will deliver superior broadband to that offered by Virgin at a much cheaper price. Unlike Virgin's it will be open for other companies to use, and will be good news for the UK," the spokesperson said.

In response to the issue of advertised speeds and actual speeds, Ofcom has made two suggestions to the Advertising Standards Authority (ASA) and the Committee on Advertising Practice, both of which are currently reviewing the situation.

Ofcom said that speeds should be advertised only if some consumers are actually able to achieve them, while ISPs that advertise 'up to' speeds should also include a typical speed range based on a standard to be developed.

The watchdog has also redrafted its Voluntary Code of Practice for ISPs, including commitments to give consumers more accurate and consistent estimates of the maximum speed likely to be achievable on their line.

Additionally, consumers should be given the option to leave contracts within three months of signing up without penalty if they receive speeds significantly below the estimates and the ISP cannot resolve the problem.

Peter Vicary-Smith, chief executive of consumer group Which?, welcomed Ofcom's stance, and called for the ASA to take a tougher stance on misleading speeds.

"ISPs continue to advertise ever-increasing speeds that bear little resemblance to what most people can achieve in reality," he said. "We want the ASA to step up to the mark and put an end to these misleading claims once and for all."

This sentiment was echoed by Mike Wilson, broadband manager at consumer web site Moneysupermarket.com.

"It has been a long-standing concern that customers are being misled when buying broadband packages. As the report from Ofcom shows, people are often lured into buying high-speed connections the UK's infrastructure cannot deliver, " he said.

However, comparison site Thinkbroadband.com argued that Ofcom had missed the opportunity to redraft the ISP Code of Practice to make it clearer for consumers.

"Instead of providing additional guidance notes which would assist providers in interpreting the code, Ofcom has created an even more complex code which is less accessible to the average user," said Thinkbroadband.com co-founder Sebastien Lahtinen.

Matthew Howett, senior analyst at Ovum, believes that ISPs are often at the mercy of other factors when it comes to the final speed users receive.

"For ISPs (particularly those using DSL) the problem can be outside their control. The actual speed a consumer gets is dependent on many factors, including congestion on the network and distance from the exchange," he said.

"The only real long-term solution will be an upgrading of the physical infrastructure, such as replacing the old copper with new fibre lines."

Howett added that marketing standards in the telecoms sector could be tightened.

Figures from Ofcom showing average speeds versus advertised speeds:
Advertised speed (average actual speed)
Up to 8/10Mbit/s DSL packages (3.3Mbit/s)
Up to 20/24Mbit/s DSL packages (6.5Mbit/s)
Up to 10Mbit/s cable services (8.7Mbit/s)
Up to 20Mbit/s cable services (15.7Mbit/s)