Consumers receiving better information on broadband speeds

UK consumers are receiving better information about the broadband speeds they can expect to receive from a new supplier, according to Ofcom research published today.

Ofcom has carried out mystery shopping1 into whether internet service providers are giving consumers relevant information about expected broadband speeds.

This research is designed to check ISPs' compliance with Ofcom's Voluntary Code of Practice on Broadband Speeds2 and has revealed that the information being provided to consumers during the sales process is mostly improving.

The research shows that in 96% of telephone enquiries, mystery shoppers were provided with an estimate of the broadband speed. This compares to 93% when Ofcom last completed mystery shopping research in 2012.

The Code, which was introduced in December 2008, helps ensure consumers are aware of the likely broadband speed they can get from an ISP, before signing up to a service.

A strengthened Code was published in July 2010, whereby ISPs committed to giving maximum speed estimates, in the form of a speed range, as early as possible in the sales process.3

Mystery shopping revealed a speed estimate in the form of a range was provided in four out of every five calls (80%), up from 68% in 2012.4

Areas for improvement

The research reveals that ISPs provided speed estimates without prompting in 68% of calls.

Although performance has improved since 2012, when 59% of mystery shoppers received speed estimates without having to prompt sales agents, some further work is required by ISPs in this area.

Two in five mystery shoppers (40%) were given information about factors that can affect their broadband speed (although increasing from 34% in 2012). Similarly, just 17% of mystery shoppers were told that the actual speed may be lower than estimated (down from 19% in 2012).

Ofcom has discussed outstanding compliance concerns with providers and sought assurances that improvements will be made.

Compliance comparisons between ISPs

EE5, Plusnet and Karoo all provided speeds information in 100% of mystery shopping calls, with EE demonstrating particular improvement since 2012.

Mystery shoppers calling Sky and Karoo were provided with a speed estimate in the form of a range in nine out of 10 calls. O2 was least likely to provide a speed range, supplying this in 58% of calls. Since 2012, TalkTalk, BT Total Broadband and Virgin Media have all demonstrated significant improvements in compliance with this aspect of the Code.

BT Total Broadband, BT Infinity, Sky, and Virgin Media (ADSL) performed well on providing a speed estimate without prompting; at least three-quarters of calls to each resulted in a speed estimate being given spontaneously.

Talk Talk (47% of calls) and O2 (55% of calls) were the least likely to provide an unprompted speed estimate.

Comparison of ISPs' compliance with speeds information requirements

Addressing compliance concerns

As a result of the mystery shopping research, Ofcom is taking action to address specific areas of concern and to further improve broadband speeds information for consumers. Ofcom will be:

ensuring ISPs take the necessary actions to improve compliance and reinforcing the Code's requirement for sales agents to offer a speed estimate as early as practicable in the sales process;

conducting further mystery shopping to monitor performance and assessing how those ISPs with weaker areas of compliance have addressed them;

undertaking a full review of the Code to ensure that it best serves consumers' needs, taking particular account of increased take-up of superfast broadband packages; and

publishing research into whether ISPs need to improve the information they provide on traffic management policies.

Claudio Pollack, Ofcom's Consumer Group Director, said: The results of our mystery shopping are encouraging, with the quality of information being provided to consumers at the point of sale improving overall.

However, the research has identified areas where providers need to do more to improve, particularly in terms of providing speeds information spontaneously and early in the sales process. We're already working with providers to ensure they tighten up their sales processes where we've identified concerns.

The mystery shopping report and Ofcom's analysis of its findings can be found here.

Ofcom-accredited price comparison sites

Ofcom encourages consumers to seek detailed information about broadband services before they choose a provider. Ofcom operates an accreditation scheme for price comparison websites which involves a rigorous audit to check whether the information provided to consumers is accessible, accurate, transparent, comprehensive and up to date5.

Accredited websites offering broadband package comparison services are Simplify Digital, BroadbandChoices, Broadband.co.uk and Cable.co.uk.

ENDS.

NOTES FOR EDITORS

A total of 1,147 mystery shops over the phone and online were completed between 16 March and 10 May 2013 to assess compliance with Ofcom's Voluntary Code of Practice on Broadband Speeds.

The Voluntary Code of Practice on Broadband Speeds was introduced in December 2008 to inform consumers of their likely maximum speed before signing up to a broadband service. A strengthened Code was published in July 2010 and signatory ISPs had up to 12 months to comply with the updated requirements or if they used BT Wholesale products until BT Wholesale was able to make the necessary updates to its systems. Among other requirements, the new version of the Code requires ISPs to give estimated speeds in the form of a range as early as practicable in the sales process. All the UK's largest ISPs, representing over 95% of UK broadband customers, have signed up to the Code.

In the case of cable services, the Code permits estimates to be provided as a sing

LINK:	http://media.ofcom.org.uk/2013/07/23/consumers-receiving-better-inform...
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