Broadband firms to reveal speeds before signing up customers

Broadband customers must be told how fast their new service will be before they sign a contract, under new protections which come into force today.

Customers will have to be told up front about broadband speeds, Ofcom has ruled.

Under the new rules, if a customer’s broadband speed then drops below the promised level, companies will have one month to improve performance, before they must let the customer walk away – penalty-free.

The new regulations stipulate that broadband providers must also be upfront with customers about what speeds to expect during peak times. This is because broadband is typically not as fast during the busiest times of the day – 8pm to 10pm for people online at home, and 12pm to 2pm for businesses.

The protections are one part of Ofcom’s Fairness for Customers work, and apply whether people are switching to a new provider or changing their current package.

They cover all the major broadband firms signed up to the new Code – BT, EE, Plusnet, Sky, TalkTalk and Virgin Media, which together serve around 95% of home broadband customers.

Consumer groups welcomed the new measures, but warned that providers should go a step further.

Richard Neudegg, head of regulation at uSwitch.com, said: “This should be welcome news for any customers blighted by the frustrations of relentlessly buffering broadband. This new

Code also improves the property-specific information about speeds that broadband providers have to give before you sign up. This is welcome, but providers should go further in opening up this information so that consumers are able to make side-by-side comparisons between providers, so that they can make the best choice.”

He added: “Broadband providers have had a year to prepare for this, so now the onus is very much on them to provide more transparency and consistency in their service.”

Kate Devine, head of home services at MoneySuperMarket, said: “It is totally necessary and justified for providers to be transparent with customers regarding the minimum and peak time speeds they’re likely to receive, before they sign on the dotted line.

“Ofcom is essentially challenging providers to back up claims about speed - and if they can’t do within a month of the contract being signed, it’s perfectly reasonable to give customers the right to switch to another provider without incurring a penalty.

Ofcom’s latest data reveals that only three in 20 broadband customers contacted their existing provider proactively and renegotiated their deal last year.

Lindsey Fussell, Ofcom’s consumer group director, said: “When you sign a contract, you should be treated fairly and know exactly what you’re getting.

“These protections mean broadband shoppers can buy with confidence. Before they sign up, customers will be told their minimum internet speed. And if companies break that promise, they’ll have to sort it out quickly, or let the customer walk away.”

Ofcom said it would keep a close eye on companies’ compliance with these new requirements and will report on their performance next year.