Ofcom panel wants broadband code of practice

Although it had worked closely with the ASA over advertising, Ofcom agreed the 'up to' phrase used in adverts by ISPs to describe broadband speed, was not helpful to consumers, so the focus now needed to be on the industry.

Ofcom said it would be carrying out what it called the first independent research into the mismatch between advertised speeds and what consumers are getting, to see how big the problem is.

However, Mr Richards said the regulator is "keen" for any measures to be implemented in the shortest possible time and he did not rule out using formal powers if needed.

Ms Bowe has also asked Ofcom to provide on its website information explaining technical issues affecting broadband speed.

Reaction from ISPs has been reasonably positive. BT said it agreed that it is important that customers are given clarity on the speed they will receive from their broadband service and informed as to why headline broadband speeds may differ from actual performance.

O2, which has only recently entered the broadband market and was not one of the six ISPs brought before the Consumer Panel, said it was important consumers only pay for the speeds they can get.

"Before a customer signs up, we will perform a line check and only offer them the suitable package(s) for the speed their line can support. If we find they are getting lower speeds, we will automatically notify them and offer to downgrade them to the most suitable package," an O2 representative said.