ISPs failing to deilver on broadband speeds - updated

Just days after secretary of state Jeremy Hunt confirmed the creation of a robust and comprehensive ‘Broadband Britain’ would emerge exclusively through private sector investment, a new report from Ofcom has revealed an ongoing disparity between Internet Service Providers advertised speeds, and those experienced by end users.

The research, described by Ofcom as the most comprehensive on the subject, showed an increase of 25% in the average broadband speed experienced by homes and businesses, from 4.1Mbit/s to 5.2Mbit/s.

Despite this, the research revealed faster headline speeds led to what Ofcom described as “a growing gap between the actual speeds delivered and the speeds that some ISPs use to advertise their services,” which was attributable to ADSL broadband through copper lines.

Over 18 million separate service performance tests were carried out in over 1,500 homes during May 2010, allowing Ofcom to “robustly” compare connections. The watchdog will be following the market and publish a report every six months; the next one is expected in January 2011.

Ed Richards, Ofcom Chief Executive said: “Ofcom’s research shows that average speeds have increased which is good news, but there is scope for a further step change in the quality of the UK communications infrastructure.”

“Actual speeds are often much lower than many of the advertised speeds which makes it essential that consumers are given information which is as accurate as possible at the point of sale; this is what the new Code is designed to deliver. We are delighted that all major ISPs have signed up which is a major step forward.”

Matthew Howett, senior analyst at Ovum, said: “Ofcom’s research paints an interesting picture. On the face of it there is good news; average broadband speeds are increasing. The worrying thing is that the gap is widening between what is advertised and what people can get in reality.

“Generally speaking, marketing standards in the telecoms sector could be tightened. Consider likening ‘up to’ broadband speeds to claims of ‘unlimited’ data tariffs – rarely are they such. Being transparent will become a lot more important, particularly as ISPs (internet service providers) look to manage their networks to deal with the increasing volume of traffic.

“However, for ISPs (particularly those using DSL) the problem can be outside of their control. The actual speed a consumer gets is dependent on many factors including congestion on the network and the distance they live from the exchange building. The only real long-term solution will be an upgrading of the physical infrastructure – i.e. replacing the old copper with new fibre lines.

“The problem will be the cost and uncertainly over the willingness of customers to pay for these upgrades. Already some significant investments are being made but there will be some areas of the UK that will not be able to benefit from superfast broadband and so will look to the government to subsidise – something which has been hotly debated for the last few years, yet on which little consensus has emerged.”