{"id":25043,"date":"2020-12-02T13:15:29","date_gmt":"2020-12-02T13:15:29","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=25043"},"modified":"2020-12-02T13:18:27","modified_gmt":"2020-12-02T13:18:27","slug":"wik-study-finds-consumers-still-confused-by-fibre-advertising","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2020\/12\/wik-study-finds-consumers-still-confused-by-fibre-advertising.html","title":{"rendered":"WIK Study Finds Consumers Still Confused by Fibre Advertising"},"content":{"rendered":"

A new study by WIK<\/a>, which was commissioned by the FTTH Council Europe<\/a>, has found that consumers are still being confused by the use (or abuse) of the term “fibre<\/em>” in broadband ISP advertising, which can just as easily refer to slower hybrid connections (e.g. FTTC<\/a> using copper and fibre lines) as it can a “full fibre<\/em>” (FTTP<\/a>) service.<\/p>\n

Most “full fibre<\/em>” (FTTP<\/a> \/ FTTH<\/a>) broadband ISPs can generally deliver significantly faster speeds (1Gbps to multi-Gigabit etc.) than metallic cables and are generally much more reliable, particularly over long distances. Experiences do vary, depending upon the network setup and length of the line, but generally there’s a huge difference in performance (Will the real fibre optic service please stand up?<\/a><\/strong>).<\/p>\n

Despite this there has long been a debate about whether or not it\u2019s right or fair for significant slower and less reliable services, such as VDSL2<\/a> based Fibre-to-the-Cabinet<\/strong> (FTTC<\/a>) packages, to be able to also promote themselves as being “fibre broadband<\/em>” products. Meanwhile the rising availability of FTTP<\/a> networks across Europe has created more interest in solving this issue.<\/p>\n

However, so far, the United Kingdom’s own Advertising Standards Authority<\/a> (ASA) has successfully resisted attempts to change their stance (here<\/a>). The ASA previously found that “fibre<\/em>” was not a priority identified by consumers when choosing a package; that those consumers did not notice “fibre<\/em>” claims in ads and, finally that they merely saw it as a shorthand buzzword to describe faster broadband.<\/p>\n

The report, prepared by WIK, attempts to reignite this debate by finding that European consumers are confused about the terms used to market broadband access technologies, and find it difficult to identify which networks provide the best performance. “Consumers often think they have fibre access when in fact they do not<\/em>,” said the council.<\/p>\n

The study found that the strongest and most effective interventions in the market to correct this have been driven by the National Regulatory Authority (NRAs) or Digital\/Telecom Ministry of the country in question rather than the Advertising Authority. Those interventions have ranged from a labelling regime in Italy introduced by AGCOM to a prohibition on the use of the term “fibre<\/em>” in France, except where fibre genuinely reaches into the home or premises. But many countries, like the UK, have yet to adopt any such changes.<\/p>\n

Fibre Advertising Measures by Country (EU)<\/strong><\/span><\/p>\n

\"fibre_advertising_rules_by_eu_country\"<\/p>\n

The council’s view is that advertising watchdogs have competence over advertising, but may have less expertise to “grasp the wider implications of different technological solutions for broadband, and have no mandate to promote the objective of fostering investment in, and take-up of fibre networks<\/em>.”<\/p>\n

Vincent Garnier, Director General of the FTTH<\/a> Council Europe, said:<\/strong><\/p>\n

“We call on European policy-makers to address the issue of misleading advertising and we believe that when assessing cases, the experience of NRAs would make a huge difference. The revision of the Broadband Cost Reduction Directive is also an opportunity to address this critical issue and the FTTH<\/a> Council Europe proposes the introduction of a \u2018fibre-ready\u2019 label for new buildings and major renovations.”<\/p><\/blockquote>\n

WIK’s report also includes some new policy recommendations, such as new EU level guidelines, which even if they were adopted would have no impact in the UK due to our imminent departure from the block (Brexit). As it stands the UK’s own ASA seems very unlikely to change its course, unless the government demands that they do so and they’ve shown no sign of doing that.<\/p>\n

Admittedly it would be very difficult to unpick something that has long since become established in the consumer subconscious, where the meaning of “fibre<\/em>” has been diluted over a decade of use (or misuse) by slower hybrid (part) fibre services. On the bright side we do think that people in the UK are becoming much more familiar with the meaning and advantages of FTTP<\/a> and “full fibre<\/em>” terminology, which bodes well for the future.<\/p>\n

WIK Policy recommendations<\/strong><\/span><\/p>\n

Actions have been taken in a number of countries \u2013 including France, Italy, Ireland and the Netherlands – to address \u201cmisleading advertising<\/em>\u201d in relation to fibre. These actions have been justified on the grounds that misleading advertising prevents consumers from making an informed choice and affects competition in the market.<\/p>\n

From a telecom perspective, the case for action has, if anything, been strengthened by the inclusion of an objective for the European Commission, BEREC and NRAs to foster the availability of and access to very high capacity broadband networks, as fostering uptake requires consumers to be properly informed about which products meet the desired criteria and what benefits these products confer. However, in practice this change would not have any impact on the conclusions that may be reached by Advertising Standards Authorities across Europe, as they have no mandate to promote this policy objective.<\/p>\n

A review of the schemes that have been introduced around Europe, clearly demonstrate that the strongest and most effective forward-looking interventions in the market have been driven by the National Regulatory Authority or Digital\/Telecom Ministry of the country in question rather than the ASA. In contrast, while their impact can be significant, few competition authorities have intervened in this area, and their decisions concern specific cases.<\/p>\n

Our review suggests that the clearest and most user-friendly approach could be the introduction of a labelling scheme, similar to the traffic lights introduced in Italy, whereby technologies with differing characteristics would be colour coded. This would enable customers to clearly compare broadband services in terms of their performance and, potentially, environmental characteristics. A coding system which distinguishes between FTTH, FTTB and cable-based services, FTTC<\/a>\/NGA FWA and ADSL<\/a> would best meet the need to distinguish the different technologies that have been deployed across the EU.<\/p>\n

Such a scheme could be applied in a similar manner to current labelling applied for energy efficiency.<\/p>\n

The approach taken in France where only ISPs delivering fibre into the home or premises are permitted to use the term \u2018fibre\u2019 in advertising materials is another model that has merit in its simplicity.
\nGuidelines could be considered at EU level to foster the involvement of NRAs and\/or Ministries across Europe and better align policy approaches to advertising broadband with the objectives established under the Code. Legislative action to introduce a mandatory labelling scheme for broadband covering performance and potentially environment characteristics, could also be considered.<\/p>\n

In order to avoid problems seen in Italy concerning advertising of products which are not widely available, in addition to specifying the design of the label and associated criteria, guidelines should also be provided which ensure that customers are informed when certain products are not widely available, and what the alternative options are.<\/p>\n

We recommend further analysis based on consumer research to confirm the design and validate the effectiveness of the chosen scheme that could be promoted through guidelines and\/or legislation.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

A new study by WIK, which was commissioned by the FTTH Council Europe, has found that consumers are still being confused by the use (or abuse) of the term “fibre” in broadband ISP advertising, which can just as easily refer to slower hybrid connections (e.g. FTTC using copper and fibre lines) as it can a […]<\/p>\n","protected":false},"author":1,"featured_media":25044,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[99,423,55,56,417,38],"class_list":["post-25043","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-asa","tag-fttb","tag-fttc","tag-fttp","tag-g-fast","tag-politics"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nWIK Study Finds Consumers Still Confused by Fibre Advertising - ISPreview UK<\/title>\n<meta name=\"description\" content=\"A new study by WIK, which was commissioned by the FTTH Council Europe, has found that consumers are still being confused by the use (or abuse) of the term\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2020\/12\/wik-study-finds-consumers-still-confused-by-fibre-advertising.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"WIK Study Finds Consumers Still Confused by Fibre Advertising - 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