Ofcom slams ISPs for misleading 'up to' download speeds

Average download speeds across the UK remain less than half of the advertised 'up to' rates advertised by many ISPs, according to new research from Ofcom which called for a change in advertising to one based on a typical speeds range.

Ofcom said in its long-awaited report that the average broadband speed increased from 5.2Mbit/s in May 2010 to 6.2Mbit/s in November/December 2010, less than half of the average advertised broadband speed of 13.8Mbit/s.

The watchdog looked at 11 packages from the seven largest broadband providers in the UK, and carried out over 18 million separate service performance tests in over 1,700 homes at the end of 2010.

BT and its Plusnet brand in particular were found wanting, with their 'up to 8Mbit/s' services actually recording an average of just 4.1Mbit/s to 4.8Mbit/s and 3.4Mbit/s to 4.4Mbit/s respectively.

Copper-based ADSL services in particular were singled out for often performing worse than the advertised speeds.

Just three per cent of customers on 'up to' 20Mbit/s or 24Mbit/s DSL services received average download speeds of over 16Mbit/s, while 69 per cent received average download speeds of 8Mbit/s or less.

BT's Infinity service performed better, with average download speeds of 31.1Mbit/s, 78 per cent of the advertised speed, as well as average upload speeds of around 8Mbit/s, significantly higher than any other service.

Virgin Media's cable services were also singled out for praise, delivering between 90 and 96 per cent of the advertised speeds.

The regulator is recommending that the range of speeds actually achieved by at least half of customers - the typical speeds range - should be used in any broadband advertising.A new, strengthened voluntary Code of Practice also comes into force in July 2011 forcing ISPs to explain the speeds customers are likely to achieve.

ISPs will also have to resolve any problems where speed is significantly below the advertised rate, and allow the customer to leave without penalty within three months if they are not satisfied.

"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," said Ofcom chief executive Ed Richards.

"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."

Ovum analyst Matthew Howett argued that, although transparency in the marketing of broadband would improve, many of the factors impairing speeds, such as distance from the exchange and in-house wiring, are actually outside ISPs' control.

"The only long-term solution to this problem will be an upgrading of the physical infrastructure - i.e. replacing the old copper with new fibre lines - and this is where being more honest with broadband speeds could be to the advantage of ISPs," he said.

"If consumers see that a superfast broadband package over a fibre line will offer a speed much closer to what is theoretically achievable, it could help with the migration of consumers to these next-generation networks."