Broadband News

News, views and analysis

ISPs respond to the new Ofcom code of practice

07 Jun 2008 | 10.17 Europe/London
Ofcom made the positive step on Thursday of getting 37 ISPs, which represent more than 90% of the UK market, to agree to a new code which mandates they must give a realistic forecast of the speed a subscriber will get. Whilst the code does not cover marketing slogans, so we are still likely to see offers of 'lightning fast' and 'up to 8Mbps' services, it does compel ISPs to be realistic about which package they finally sell to a customer.

Ofcom has vowed to test adherence to the 'word and spirit' of the code through mystery shopping. Its CEO, Ed Richards, has welcomed the code which he believes will "encourage clarity for consumers about the actual broadband speeds they can receive".

Orange Broadband, one of the ISPs which has signed up to the code, has welcomed the move as giving greater transparency to the sales process and hopefully ending the uncertainty surrounding selecting a broadband tariff.

"We've always had a policy of running a check on a line to give a potential subscriber a ballpark figure of what speed they could expect," a spokesperson tells Samknows.
"So it's not going to make a huge amount of difference to us but it is a very welcome move forwards for the whole industry."

The ISP industry association, ISPA, welcomed the code for encouraging "openness and transparency" and Be Broadband, as one might expect from an ADSL2+ operator, summed up the move as a "shot in the arm for the industry". Specialist business ISP, Zen, also welcomed the code and vowed to Samknows that it will "continue to work with Ofcom on any future development of the code" - a reference to calls from several ISPs that mobile broadband speeds should be brought in to the remit of the code.

Tesco, Thus (owner of Demon) and Entanet were notable exceptions to the list of ISPs announced by Ofcom at the launch of the code. Whilst Tesco has praised the open principles behind the code and reassured the public it is considering sign up, Thus did not return calls from Samknows enquiring if it supports the code and is considering signing up. Both Entanet and IDNET have opined to ISPreview that the code does not go far enough and leaves many issues unaddressed.

Update: It's been noted that Demon have commented in their newsgroup that they will be signing up to the code of practice, but no formal announcement has been made yet.