Ofcom UK Clamps Down on Misleading Uses of “Fibre” Broadband UPDATE2

Good news. The UK telecoms regulator, Ofcom, has today proposed new guidance that would only allow broadband ISPs to use the terms “fibre” and “full-fibre” on their websites and in contracts “if their network uses fibre-optic cables all the way from the exchange to the home” (i.e. FTTP).

As we’ve previously reported, numerous broadband ISPs have spent the best part of the previous decade selling slower “part-fibre” or “hybrid-fibre” (e.g. FTTC / VDSL2, G.fast, Hybrid Fibre Coax) solutions as “fibre broadband” products, which is one of the reasons why so many people continue to be confused about the terminology today (i.e. if you think you’ve got it already, then you may be less likely to contemplate an upgrade).

In the past, there have been various attempts to correct this, such as via a review conducted by the Advertising Standards Authority (here) and a failed court challenge by CityFibre (here). Back in 2021 the Gigabit Take-Up Advisory Group (GigaTAG) also proposed several changes (here), including clearer labelling of broadband packages to help consumers understand the differences. But until now there hasn’t been a concrete change.

However, Ofcom recognises that the way fixed broadband services are delivered is changing, not least with respect to the national rollout of gigabit-capable Fibre-to-the-Premises (FTTP) networks that offer many advantages in terms of speed, latency, reliability and so forth.

As such, the regulator has finally decided to underline the importance of this by ensuring that consumers are getting the most useful and correct information, which they’re going to do by addressing how the term “fibre” is “used inconsistently” to apply to both new and older networks. Took them long enough.

Ofcom’s Proposal for Fibre Terminology

We are consulting on guidance under General Condition C2.3 and General Condition C1 that providers should:

• Include a short description of the underlying technology of the network delivering the broadband service, on their websites and in contract information, using one or two terms such as ‘fibre’, ‘cable’, ‘full-fibre’, ‘copper’ or ‘part-fibre’.

• Use those terms consistently to describe the service.

• Only use the terms ‘fibre’ and ‘full-fibre’ when referring to fibre-to-the-premises networks.

• Provide an explanation of the one- or two-word terms used to describe the service, in a way that can be easily accessed by customers.

As part of this, the regulator highlighted some results from its own survey, which found that only 46% of customers who reported being on full-fibre broadband were living in areas where it is actually available and 27% lacked confidence in understanding the language and terminology used by ISPs. Some 53% also said, when choosing a broadband service, that it would useful to have a short description of the underlying technology used to deliver their services.

Selina Chadha, Ofcom’s Director of Connectivity, said:

“It’s vital that customers are provided with the right information to help them choose the best broadband service for them. But some of the industry jargon used to describe the underlying technology supporting their broadband service can be unclear and inconsistent, meaning customers are left confused.

So today we’re proposing to introduce new guidance to ensure that broadband firms give clearer, straightforward information about their services – making it easier for people to take advantage of more reliable, and potentially higher speed technology, as it becomes available.”

The new proposals cover residential and small business services, but Ofcom clarifies that they “do not cover advertising“, but they do cover point-of-sale information and contractual information. Advertising, including online advertising on companies’ own websites, falls within the remit of the Advertising Standards Authority (ASA). Nevertheless, Ofcom’s move will place pressure on the ASA to follow suit.

In 2017 the ASA concluded that it was NOT materially misleading to describe broadband services that use fibre-optic cables for only part of the connection to consumers’ homes as “fibre broadband“, while also claiming that it had little to no impact upon the decisions that consumers were making.

The ASA’s position reflected the problem of trying to change an approach that has long since become established in the consumer subconscious, where the meaning of “fibre” has been diluted over years of use (or misuse) alongside slower hybrid (part) fibre technologies. In fairness, though, most consumers still seem to pick a package based more on a combination of price, speed and quality than a specific technology.

The proposals form part of Ofcom’s related consultation, which will remain open for feedback until 5pm on 3rd May 2023. The regulator then plans to publish a statement in Autumn 2023.

UPDATE 3:05pm

The comments are starting to come in.

Jarlath Finnegan, CEO of Giganet, said:

“At a time where there is significant investment in fibre infrastructure across the UK, many customers are gaining access to full fibre broadband for the first time, so we welcome this timely announcement that Ofcom is going to ensure that customers get much clearer and consistent information when they are signing up to a new provider.

There continues to be confusion around whether it’s super-fast, ultra-fast, full or part fibre. The new guidance will help customers take advantage of the best broadband available and strengthen the case for more accelerated investment in full fibre infrastructure.

At Giganet, we offer full fibre services only as it’s the best way to ensure customers at home and in business have consistently reliable internet services.”

Greg Mesch, CEO of CityFibre, said:

“Millions of consumers have been mis-sold broadband products for too long. They have been sold internet connections that still use outdated, slow and unreliable copper networks but have been advertised as ‘fibre’ connections.

Ofcom is clear that full fibre is better broadband, and we look forward to it stamping out this practice so that consumers can no longer be misled.”

UPDATE 9th March 2023

James Warner, CSO of FullFibre, said:

“After years of suffering confusing jargon, customers can now breathe a sigh of relief that there will be some clarity when it comes to what they might actually be getting when they buy broadband. It has taken far to long for Ofcom to announce this, and it won’t come into force until the autumn, at the earliest, so a few more months of miss-leading the consumer left and then we can all be clear on what Fibre actually is.

Hopefully this is the start of some clarity and consistency across the sector, which won’t just help the consumer, but start to de-mystify something that should be simple and for the benefit of all.”