Ofcom proposes overhaul of broadband speed advertising

Ofcom wants internet service providers (ISPs) banned from advertising broadband speeds that few people can actually receive.

With Ofcom's latest research finding average download speeds are still less than half the advertised 'up to' speeds, the communications regulator wants ISPs forced to use a Typical Speed Range (TSR) in advertising; along the lines of the APR rates used in the financial sector.

Ofcom also wants these TSRs as prominently placed in an advert as any ‘up to' speed claim that may be used if permitted.

Ofcom's chief executive Ed Richards said: "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."

However, Ofcom has long said it can't make these changes because they are a matter for the Advertising Standards Authority (ASA).

It has now submitted its conclusions to the Committee for Advertising Practice (CAP) and Broadcast Committee for Advertising Practice (BCAP). These two bodies write the codes, which are then enforced by the ASA.

Ofcom has been monitoring broadband speeds around the UK for around three years. The latest findings were taken by monitoring 11 packages provided by the seven largest providers in the UK.

These speeds are up from 5.2Mbits/sec in May last year to 6.2Mbits/sec between November and December 2010, but the watchdog said this is still less than half (45 per cent) of the average advertised broadband speed of 13.8Mbits/sec.

The research, however, did show super-fast broadband services, of up to 40 and 100Mbits/sec, being rolled out by providers such as BT and Virgin, do deliver speeds that more closely match the advertising blurb.

Ofcom is now recommending to CAP and BCAP that unless a maximum ‘up to' speed can be practically achieved by a number of customers, it must not be used in advertising. However, if an ‘up to' claim is used, a TSR must also be given "at least equal prominence" in an advert.

A far stronger response to the ASA about the issue of 'up to' speed claims came from the Communications Consumer Panel last week.

Anna Bradley, the policy advisory body's chairwoman, said "the current approach of advertising ‘up to' broadband headline speeds is no longer credible or sustainable and is causing widespread scepticism amongst consumers".

The Internet Service Providers' Association (Ispa) gave a cautious welcome to Ofcom's proposals, but pointed out the technical factors that can limit some services.

"Ispa advocates transparency and so the publication of detailed information about speeds is a helpful exercise.

"It is important to stress that a number of factors may affect a user's broadband connection including distance from the exchange, network congestion and wiring in the home... so ISPs may choose to use the term 'up to' as part of their advertising.

"The Ofcom code of practice on broadband speeds, which a number of Ispa members have signed up to, ensures that ISPs give accurate information about expected speeds to customers at the point of sale.

Ispa recommends all consumers wishing to choose a provider should choose an Ispa member so that they are covered by the Ispa Code of Practice and its complaints procedure."

The ASA said that the CAP/BCAP consultation closed last Friday, 25 February. The ASA said it would be going over the submitted responses and is expected to publish its response in a matter of weeks.