You are here: Home - Household Bills - News -

Firms forced to be clearer on broadband speeds

0
Written by: Paloma Kubiak
01/03/2018
Internet providers will need to give a minimum guaranteed speed to potential customers before they sign up to a deal, the communications regulator has announced.

Broadband customers must receive better information about speeds before they commit to a contract, Ofcom has announced.

From 1 March 2019, providers will need to give a minimum guaranteed speed to prospective customers at the point of sale, whether they have copper, full or part fibre or cable technology.

If the speed drops below this level, broadband firms will have 30 calendar days to improve performance, otherwise customers will be able to walk away penalty-free. Currently providers have an unlimited amount of time to resolve the problem.

This right to exit a contract will also apply to bundles: landline and TV packages bought together with broadband. This means customers won’t be tied to a TV contract bought at the same time as their broadband, if speeds fall short of what was promised, and they decide to leave.

Internet providers will also need to provide more realistic peak-time speed information upfront as this is typically when speeds aren’t as fast when more people are online.

Average download speeds for residential customers are 34.6Mbit/s during the 8-10pm peak period, compared to average maximum speeds of 39.1Mbit/s.

Lindsey Fussell, Ofcom’s consumer group director, said: “Broadband customers must know what they’re signing up to.

“These protections will close the gap between the broadband speeds people are sold, and what they actually receive. And to give people extra confidence, we are making it easier to walk away – without penalty – if companies fail to deliver.”

Richard Neudegg, head of regulation at uSwitch, said the changes are welcome news for consumers who feel stranded on broadband speeds that don’t live up to their provider’s set minimum.

“Under this Code, greater onus will be placed on providers to bring the most seriously impacted customers’ speeds up to scratch within 30 days of the issue being raised, otherwise consumers will be able to switch away without exit fees. The hope is that this will light a fire under providers to be more proactive in sorting out problems.

“But we shouldn’t pretend this will by itself sort out the broadband reliability frustrations many of us experience. Despite superfast broadband now being available to 95% of the country, only 57% of customers believe they can actually access it. More needs to be done to help households move to a better service.”

Neudegg added that what is needed is for information to be opened up so that consumers can compare different provider speeds side-by-side in order to make an informed decision about the service that best suits them.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

  • According to @YourMoneyUK the #Govt is considering a Care ISA’ which would be exempt from #inheritancetax. Could th… https://t.co/hPVZZfdyDr
  • RT @unitetheunion: “We need tough action against unscrupulous debt collection agencies who prey on people’s misery to ramp up the debt thro…
  • RT @unitetheunion: “We need tough action against unscrupulous debt collection agencies who prey on people’s misery to ramp up the debt thro…
Read previous post:
premium bonds
Luck of the draw: new Premium Bond holder scoops £1m jackpot

A man has scooped the £1m jackpot in the first month of holding Premium Bonds while the other lucky winner...

Close