Showing posts with label advertised. Show all posts
Showing posts with label advertised. Show all posts

Government cracks broadband whip

Tuesday, December 25, 2007

Speedometer, Eyewire
Few people get the advertised top speed for broadband
Broadband firms could face formal action if they fail to give consumers accurate information about the speed they will get when they sign up.

The warning comes from Ofcom as it moves to ensure that net firms do not oversell broadband in advertising.

Customers should get specific data about the speed on their line or be able to back out of the deal.

The regulator said new guidelines on the selling of broadband should come into force early in 2008.

Clear information

The warning came in a letter sent by Ofcom boss Ed Richards to the Ofcom Consumer Panel in response to its work with broadband suppliers on the advertising and selling of high-speed services.

In October the panel talked to chief executives at the UK's top six net service firms to find out why consumers often do not get the speeds broadband firms advertise.

Net firms have been criticised for advertising their services using the phrase "up to" that can give consumers a false sense of the speed they will get when they sign up.

The Ofcom Consumer Panel said speeds advertised as "up to" a certain level end up being much slower in reality.

The panel called on Ofcom to set up and administer a mandatory code of practice for net firms.

Panel chairman Colette Bowe said: "This code would establish agreed processes to give the customer the best information during and after the sales process, and to give them flexibility to move freely to different packages that reflect the actual speeds with which their ISPs are able to provide them."

The code would let customers know as they sign up about the maximum theoretical speed they can get on their line; provide information about what affects line speed and call customers two weeks after installation to let them know what speed they are getting.

At that time, if speeds were "significantly" lower than those someone signed up for, customers should be able to swap to a different package free of charge or back out of the deal.

Network cabling, BBC
Customers should get more data about what can slow line speed

The consumer panel talked to net firms about the problem with line speeds following widespread reports that consumers were disappointed with the broadband speeds they were getting.

In late September a study by UK magazine Computeractive found that 62% of those who used its speed testing software were browsing the net at less than half of the top speed advertised by their supplier.

It also said Ofcom should put more information on its website to give consumers as much information as possible before they sign up or switch suppliers.

In his response Ofcom boss Ed Richards backed the consumer panel work and said it was talking to the broadband industry about how best to implement the recommendations.

The result of these discussions should be made public early in 2008, he said.

"We are keen that any measures are implemented in the shortest time frame possible," said Mr Richards. "At this stage, we have not ruled out the possibility of using formal powers if we consider it would be more effective in delivering our objectives."

A spokeswoman for Ofcom said that currently the regulator had no powers to enforce the new arrangements on the selling of broadband but would seek them by beefing up the guidelines net firms must abide by.

"This is a considerable consumer issue we are concerned by," said the spokeswoman. "We think consumers should get what they pay for. It's an important decision for them."Delays, delays Beer and Buddhism Special delivery

Source from: news.bbc.co.uk

Broadband speeds around the world

Monday, December 3, 2007

As the UK debates how and when to roll our faster broadband networks, we look at the huge divide between the speeds of some of the world's faster broadband nations and some of the slowest. There is also a big gap between the advertised speeds and the actual speeds users are getting.

Currently in the UK the big issue is the gap between advertised and actual speeds, so while 10Mbps might be available from a few suppliers, very few actually get this speed. According to speedtest.net - a global speed test created by actual users and approved by most of the major ISPs in the US - the real speed is closer to 3Mbps.

Things get faster next year as ADSL2+ comes online promising speeds of up to 24Mbps, although as with all DSL technology, there are physical limits and only those close to the exchange will actually get the top speeds.

Virgin Media is currently trialling a 50Mbps cable service and BT is also experimenting with fibre to the home, which could offers speeds of up to 100Mbps.

France has an advertised average of 44Mbps.

According to speedtest.net the average speed from those doing the test is 4.6Mbps but higher speeds are beginning to come online. ADSL2+ is already available and is being marketed as providing speeds of up to 28Mbps.

Actual speeds will vary although the copper telephone lines are generally of better quality than in the UK, so speeds are typically higher.

The leading ISPs in France have announced fibre-based services. Orange and Frees' offerings are live now and are marketed at offering speeds around 50Mbps. Free's offer at 29 euros a month, comes bundled with a broadband telephone service, IPTV, plus a free set top box.

Average advertised speeds of 9Mbps falls to 4.8Mbps according to speedtest.net.

In Germany the main delivery mechanism is still largely DSL, and the leading company is the old incumbent Deutsche Telekom.

They have a VDSL network - which provides fibre as far as the street cabinet.

This is live in the main German cities, and offers speeds of up to around 25Mbps. Outside of the main towns there is a mixture of ADSL 1 and 2 technologies.

Average advertised speed of 21Mbps but according to speedtest.net, people are actually achieving an average of 7.4Mbps.

In Sweden there is a VDSL network live. Fibre has been available for quite a long time with a significant number of people served by it.

Speeds vary depending on which network, but can go up to 100Mbps, However there is a big polarisation between those that get it and those still relying on DSL products.

1Mbps (this data comes from the ITU as OECD doesn't have figures for Africa).

Alongside countries such as Morocco, South Africa is one of the biggest broadband countries in Africa.

The primary delivery mechanism is via broadband. WIMAX penetration is still low. Although it is likely to become an important infrastructure in Africa, currently it is too expensive to be widely deployed.

Israel's advertised figure is 2Mbps.

Israel has very high penetration levels with around 70% of households using a broadband connection.

There is quite a lot of cable services available alongside DSL and there has been quite a big government spend on broadband.

The US has an average speed of 8Mbps according to the OECD, although it is nearly half this (4.6Mbps) according to speedtest.com.

The US is unusual because it is one of the few countries in which cable is the largest connection network.

Typically cable is marketed at offering between 5Mbps and 20Mbps. Number of fibre providers, most notably Verizon which offers fibre to home, with speeds up to 20Mb, This is just available on the east coast. ATT is offering a hybrid DSL service while Qwest has just announced a fibre to street strategy.

Mexico's advertised speed is 2Mbps.

In Mexico the predominant infrastructure is broadband via DSL.

Its rich incumbent telecom firm TelMex are considering laying fibre and despite the fact that there is no large scale implementation it is likely to overtake the UK very soon in terms of the amount of fibre available.

Japan has an average speed of 93Mbps according to the OECD, but this falls to 10.6Mbps according to speedtest.com, which could be indicative of the fact that fibre is concentrated in the towns and cities.

Cable broadband is quite strong in Japan but the biggest market is in fibre to the home.

This has proved so popular with consumers that DSL is actually in decline. Companies are so advanced with fibre delivery that they are beginning to find DSL surplass to requirements.

The speeds fibre provides means applications such as sharing video files are standard.

Fibre also dramatically improves upload speeds, making it much more suitable for web 2.0 communication, with individuals contributing back to the internet with pictures and videos.

South Korea's figure is 43Mbps.

In South Korea there has also been a very strong fibre rollout, which has been enabled, at least in part, by state contributions.

Often regarded as something of a gold standard when it comes to super-fast broadband, an amazing 90% of homes have a broadband connection of between 50 and 100Mbps.

They also pay the lowest rates in the world. There are pilot services offering connections starting at 1,000Mbps.

The big driver for fast broadband here is gaming and 43% of the population has a personal profile in the virtual world Cyworld, which recorded 5m worth of trade per month last year.

Those dawdling on slow UK connections can take heart from results from speedtest.net which show that some citizens are only achieving speeds of 3.6Mbps. This is because the extremely fast networks are concentrated in the towns and cities.

Average advertised speed of 13.5Mbps, falls to 2.4Mbps according to speedtest.net

Broadband comes largely via DSL in New Zealand where Telecom New Zealand is very dominant.

Cable is limited to one or two cities.

There are very specific challenges for providers in New Zealand. Because of the distances between houses there tends to be very long telephone lines, meaning quality is not great for many. International connectivity is also an issue because of its physical distance from the rest of the world. There is not much competition meaning speeds stay slow.

The model of local loop unbundling - opening the telephone exchanges ot other operators - is being considered as is the idea of providing fibre to the street cabinet or to push DSL into remoter street cabinets to reduce line length.

Average speed of 4Mbps, falls to 1.6Mbps according to speedtest.net.

In Poland there is virtually no local loop unbundling, which means little competition for the France Telecom-owned incumbent.

Speeds there aren't fast by western European standards although there are quite a lot of so-called LAN networks (Local Area Networks) using ethernet cable, which allow for super-fast speeds because of their limited geography. This phenomenon is peculiar to eastern European countries such as Poland where the existing infrastructure isn't great but it is relatively easy for local entrepreneurs to set up such systems quickly.

ITU data puts China's broadband speed at 1Mbps.

China is fast becoming the world's largest broadband economy. It is laying quite a lot of fibre which is a less disruptive option in China because of the amount of new building work being done.

It already has 14 million fibre lines, compared to 9.6 million in Japan, 1.7m in the US and just a few thousand in the UK but it doesn't generate the same speeds as in other Asian countries because the fibre tends to feed into blocks of flats rather than individual dwellings.

Beauty and poverty British bottle The week ahead

Source from: news.bbc.co.uk

Net firms quizzed on speed limits

Sunday, November 25, 2007

Bosses at six of the UK's top net providers are being asked to explain why consumers do not get the broadband speeds firms advertise.

The six executives are being questioned by Ofcom's Consumer Panel which acts as the regulator's customer champion.

The panel wants consumers to get more information so they are not misled about the speed they sign up for.

The panel also has proposals on what net firms should do to improve how they sell and advertise broadband.

Penalty clause

"We believe that broadband customers are not at the moment getting enough information," said Colette Bowe, chairwoman of the Ofcom Consumer Panel.

In the letter to the net firms, Ms Bowe recognised that there were good technical reasons for the gulf between advertised and actual speeds.

She asked the net firms to find ways to deal with the technical problems so consumers are more informed about the potential broadband speeds in their neighbourhood.

The panel has asked net firms to consider lengthening cooling off periods so customers can test connection speeds before they sign a contract.

It also wants them to think about letting customers terminate a contract early and without penalties if speeds are well below what is advertised.

The panel was set up in 2003 and gives the view of the consumer to Ofcom when the regulator consults on industry issues.

Its approach comes after a series of events that have highlighted the gulf between the net speeds firms claim and what consumers experience.

In mid-September, Computeractive magazine revealed a survey which showed that 62% of the 3,000 readers who carried out speed tests got less than half the top broadband speed advertised by their provider.

In response to the findings Ofcom said it was "aware" of the issue and was investigating what could be done about it.

Research by analyst firm Point Topic has shown that few people will be able to enjoy the top speeds advertised by broadband firms. It estimates that only about half the UK's population will be able to use the web at speeds of 8Mbps.Friend or foe? Broken homes Painful memories

Source from: news.bbc.co.uk

Broadband speeds under scrutiny

Wednesday, November 21, 2007

Speedometer
What broadband speed are you clocking up?
Broadband speeds in the UK are much slower than advertised by internet service providers, a study by Computeractive magazine has found.

Some 3,000 readers took part in speed tests and 62% found they routinely got less than half of the top speed advertised by their provider.

It is the latest in a series of questions over the way net firms advertise broadband services.

Regulator Ofcom said it was aware of the issue and was "investigating".

Testing times

The figures were gathered from more than 100,000 speed tests that the 3,000 respondents carried out to build up a picture of their average net-browsing speed on ADSL lines.

Statistics about net users in the UK show that half of current broadband users receive ADSL services that should run at speeds between one and four megabits per second (mbps).

The other 50% are on deals offering up to eight mbps but the tests revealed that, in reality, very few achieve the top speeds.

"This problem has been building for a while with a growing gulf between what is advertised and what is delivered," said Paul Allen, editor of Computeractive.

"The adverts often have super-fast broadband in huge lettering with the "up to" clause in very small print," he said.

Phone jack, Eyewire
Broadband is often not as fast as advertised

Some 28% of the 3,000 respondents who took the ADSL speed test found that they received less than a quarter of their maximum advertised bandwidth.

While consumers may currently not notice their sluggish connections, this could change thinks Mr Allen.

"Previously it has not been a massive issue but in the coming year we are entering the net TV age and video content is bandwidth-hungry," he said.

Mr Allen called on regulator Ofcom to provide an independent speed test to anyone who has signed up to receive broadband.

Speaking for the telecommunications watchdog, a spokesman said: "We are looking at this issue. It is not a huge driver of complaints but it has come on to our radar screen."

"It's about the difference between the headline rate and the rate received," he said.

The spokesman said Ofcom was working with the net industry and other organisations such as Which to investigate the extent of the problem and what can be done about it.

"Once we have carried out this work we will assess what options might be available to tackle it," he said. The results of the investigation would be made available in the "near future", said the spokesman.

Fast chance

Research by market analysts Point Topic sugggests that, in many areas of the UK, few people will be able to get the fastest broadband speeds.

Only 5% of the population will be able to enjoy speeds of 18Mbps. More than half will only be able to get 8Mbps.

Screen shot of YouTube
People are using more bandwidth-hungry applications

Ofcom was also working with the Advertising Standards Authority to keep an eye on how net service firms word their marketing materials.

"We make sure broadband advertising does not advertise speeds that cannot be guaranteed," he said. "They have to make it clear that there is a best possible speed rather than an average speed."

The ASA has investigated several cases of misleading promotions, most recently asking Bulldog to make it clear in its adverts that speed was dependent on how far away from the exchange people lived.

It ruled that broadband providers could use the words "up to" 8Mbps when describing services as long as customers were likely to get close to those speeds.

A survey last month by consumer group Which found that consumers with services promising speeds of up to 8Mbps were actually getting an average speed of 2.7Mbps.

There are many variables that determine the speed of a connection, including how far away from the telephone exchange the line is, how many others are using the line at the same time and the quality of the wiring within a home.

The tool used in the study is available for download from the Computeractive website. It was developed by advice service Broadband Choice.

Computeractive has also launched an e-petition on the Downing Street website, asking the government to force net service firms to provide clear information about the typical speed users will receive alongside the maximum speed.In pictures Importing workers Dollar's dazzle

Source from: news.bbc.co.uk