Ofcom UK Propose Small Improvements to Broadband Speed Code

Ofcom has proposed to tweak their 2019 voluntary Code of Practice for Broadband ISP Speeds, which will extend the current ‘Right to Exit‘ (i.e. when an ISP fails to correct a problem with broadband speeds) to the latest definition of service bundles. It will also require FTTP and cable ISPs to provide details on observed line speeds.

The 2019 code – as supported by BT, EE, Plusnet, TalkTalk, Utility Warehouse, Virgin Media and Zen Internet (Sky Broadband are due to “re-join … later this year“) – essentially requires member ISPs to provide reliable estimates of connection performance (as measured at peak times) to customers during the order process, and to also help resolve problems when they arise.

As part of this code, customers gain the right to exit their broadband ISP contract, without penalty, if speeds drop below the minimum guaranteed level (MGAL) for their line and this isn’t fixed by the ISP within 30 days – see Ofcom’s Codes of Practice page for more details.

However, today the regulator has published a new report on the performance of this code, which finds that 95% of issues raised under the Codes’ minimum speed guarantee, and which relate to access line speeds, are resolved within 30 days. Of the remaining 5%, the majority of customers were offered ways to resolve their issues, with 20% of this remainder choosing to exercise their right to exit or take an alternative solution.

Despite the broadly positive picture, the regulator has still identified a number of areas where supporting ISPs must improve their compliance.

Areas where improvements could be made

• Accuracy

Currently, observed line speeds are only available for customers of signatories who use Openreach fibre-to-the-cabinet (FTTC) products, but not for customers using Virgin Media cable [Hybrid Fibre Coax] products and those using fibre-to-the-premises [FTTP] products.

Going forwards, we expect signatories to develop an approach to provide observed speeds across all technologies as soon as possible rather than relying on estimates. This will be of increasing importance as full fibre networks are rolled out more widely and relied on by an increasing number of customers.

• Timeliness

Some broadband operators are asking customers not to report speed problems for newly connected FTTC products for between 3 and 14 days. This is to allow the technology time to adjust to the line speed to give the best stable performance for a given line. We consider 14 days is too long, and recommend that any period to allow the line speed to stabilise should be as short as possible.

• Transparency

We have identified a number of areas where the collection and recording of data can be improved by some signatories to help demonstrate compliance with the Codes for both internal purposes and future Ofcom reviews.

In addition, Ofcom is proposing to make a small update to the code, which is designed to reflect their recent changes to the General Conditions of Entitlement (GCs) – due to be implemented from 17th June 2022 – and specifically the latest definition of service bundles.

From 17th June 2022, when customers are notified of changes to their contractual conditions, they will have a right to exit their contract without incurring additional costs unless the changes are exclusively to the customer’s benefit, of a purely administrative nature (and having no negative effect on the customer), or directly imposed by law.

The strengthened right to exit will also apply to other services or equipment bought as part of a bundle with an electronic communications service. It applies to residential consumers and also to small businesses, unless (for small businesses) they waive their rights to any new protections

What we are proposing

Updating the Residential Code definition of a bundle.

We are proposing to amend the definition of a bundle in the Residential Broadband Speeds Code of Practice (the ‘Residential Code’) so that the customer’s right to exit will apply to their broadband and bundled services in the same way as their right to exit will apply to their contract and bundled services as set out in the revised GCs.

Updating, within the Business Code, the definition of a bundle for small businesses.

For small businesses (those with ten or less individuals),1 as with the Residential Code, we are proposing to amend the definition of a bundle in the Business Broadband Speeds Code of Practice (the ‘Business Code’). This will mean that for small businesses, their right to exit will apply to their broadband and bundled services in the same way as their right to exit will apply to their contract and bundled services set out in the revised GCs.

Retaining, within the Business Code, the existing definition of a bundle for larger businesses.

For larger businesses, we propose to retain the existing Business Code’s definition of a bundle to ensure the existing protections continue.

The requirements in the revised GCs recognise that bundles have become increasingly widespread and are an important element of competition. The extension of the right to exit to bundles in the revised GCs is thus intended to “help ensure that bundles do not make switching more difficult and costly for customers or raise risks of contractual lock in.”

Ofcom intends to consult on the bundles tweak until 22nd June 2022, and they then aim to issue a final statement on the matter during autumn 2022-23. Supporting broadband ISPs will then be given 3 months to implement the change.

The regulator also said that they were in “discussions” with additional broadband ISPs about joining the 2018/19 code, although in the past many smaller ISPs have found that the costs involved with adapting to Ofcom’s code can be far too high and have thus tended to shun them. A lot of this has to do with the complex requirements around testing, monitoring and reporting real-world style speeds.