Voluntary code for broadband providers
Voluntary code for broadband providers
Thursday 5th June 2008
Broadband providers have been asked to sign up to a new industry code to provide more honest internet speeds to customers.Regulator Ofcom found consumers could be misled or misinformed when choosing their broadband services by ISPs advertising headline speeds that are higher than users can receive in practice.
In a deal with Ofcom and 32 internet service providers (ISPs) a new code of conduct will be established for the industry. The regulator will also be undergoing a national investigation into broadband speeds.
Under the new deal ISPs will provide customers with accurate estimates of their maximum speed when they buy.
Also if internet speeds advertised do not live up to expectations, consumers will be allowed to switch to lower speed, and cheaper, deals.
Clearer information on usage limits will also be provided.
"The ball is very much in the ISPs' court for them to meet the spirit and the letter of the code," a spokesperson for Ofcom said.
Firms have six months to adhere the code – at which point Ofcom will conduct mystery shopper research to ensure the plans are being met.
If the broadband firms fail to meet the demands of the code, Ofcom has warned it will introduce mandatory regulations – as it has done for the sale of mobile phones when a voluntary code failed to change poor sales practices.
Ed Richards, Ofcom's chief executive, said: "Broadband is a thriving market in the UK. We want to encourage real clarity for consumers about the actual broadband speeds they can receive. This voluntary code is a significant step in this direction."
Related News
Climate law should cover all industries, firms say - 03/06/08
Two thirds of UK businesses believe leaving the aviation and shipping industries out of a new climate change law would be a mistake, a survey from an environmental campaign group has revealed
Two thirds of UK businesses believe leaving the aviation and shipping industries out of a new climate change law would be a mistake, a survey from an environmental campaign group has revealed
Workplace diversity saves firms cash - 03/06/08
Promoting diversity in the workplace can save businesses thousands, a report from employers' organisation CBI and the Trades Union Congress (TUC) suggests
Promoting diversity in the workplace can save businesses thousands, a report from employers' organisation CBI and the Trades Union Congress (TUC) suggests
Banks raided by OFT over price-fixing - 02/06/08
The Office of Fair Trading (OFT) has carried out a series of raids at Barclays and the Royal Bank of Scotland over loan price-fixing allegations
The Office of Fair Trading (OFT) has carried out a series of raids at Barclays and the Royal Bank of Scotland over loan price-fixing allegations
Savings robust as credit squeezed - 02/06/08
Saving levels at UK building societies have hit new highs the global credit crisis endures
Saving levels at UK building societies have hit new highs the global credit crisis endures
News Article Search
Quick Apply
News Archive