{"id":26514,"date":"2021-03-31T08:51:19","date_gmt":"2021-03-31T07:51:19","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=26514"},"modified":"2021-03-31T09:12:11","modified_gmt":"2021-03-31T08:12:11","slug":"report-claims-labelling-could-boost-uptake-of-fttp-broadband","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2021\/03\/report-claims-labelling-could-boost-uptake-of-fttp-broadband.html","title":{"rendered":"Report Claims Labelling Could Help UK Uptake of FTTP Broadband"},"content":{"rendered":"

A new report from WIK-Consult, which was commissioned by CityFibre<\/a>, has claimed that the introduction of a new UK labelling system, with better information on broadband services, could increase consumer take-up of gigabit Fibre-to-the-Premises (FTTP<\/a>) ISP products by 40% (i.e. an extra 1.6 million homes by 2025).<\/p>\n

Growing take-up by consumers is important to the new generation of “full fibre<\/em>” providers because it helps to prove their business models to investors (most such operators like to get at least 20-25% take-up). In keeping with that, it gives a useful idea of how long a provider may have to wait until seeing some payback on their investment (FTTP<\/a> is expensive to deploy and so it could be many years before that investment is returned).<\/p>\n

Last year’s preliminary report<\/a> from the new Gigabit Take-Up Advisory Group<\/strong> (GigaTAG) proposed, among other things, that one way to improve take-up of full fibre services in the UK might be to introduce a “labelling system for broadband packages to provide simple, clear and consistent information<\/em>.”<\/p>\n

Some countries, like Italy, already have something similar where FTTP<\/a> is given a circular green label, while yellow denotes slower hybrid fibre (FTTC<\/a>), and pure copper (ADSL<\/a>) broadband lines (or slow speed wireless services) get a nasty red colour.<\/p>\n

One complication here might be Virgin Media<\/a>’s Hybrid Fibre Coax (HFC DOCSIS<\/a> 3.1) network, which can deliver multi-gigabit download speeds (not to mention FTTB deployments to MDUs), which would require some extra consideration. Likewise, it is possible, under the right circumstances and setup, for some fixed wireless networks, and even 5G<\/a> mobile, to achieve 1Gbps+ speeds.<\/p>\n

The labelling idea also plays into CityFibre<\/a>’s long fight against potentially misleading use of terminology like “fibre broadband<\/em>” in advertising (i.e. using it for both FTTP and slower FTTC<\/a> services etc.). The Advertising Standards Authority<\/a> (ASA) has been highly successful at rebuffing their challenges (example<\/a>), but the enforcement of a new labelling system might be one way to get around that particular roadblock.<\/p>\n

The WIK-Consult Report<\/strong><\/span><\/h3>\n

The findings of the new report are based on a consumer survey and a conjoint study involving a representative sample of 3,000 UK consumers, each of whom spent around 15 minutes answering questions and choosing from amongst hypothetical broadband offers. The fieldwork was conducted by YouGov, although the survey itself was designed and the results analysed by WIK-Consult.<\/p>\n

In regard to consumer confusion, the study found that almost half of consumers claim not to know what \u2018superfast<\/em>\u2019, \u2018ultrafast<\/em>\u2019 and \u2018gigabit<\/em>\u2019 mean. Respondents who did provide their understanding of what these terms mean tended to significantly overestimate the speeds offered by \u2018superfast<\/em>\u2019 and \u2018ultrafast<\/em>\u2019 connections (e.g. respondents on average claimed that \u2018superfast\u2019 equates to a speed of 500Mbps, when Ofcom<\/a> in fact define it as speeds of 30Mbps or better). Many consumers also do not know whether they genuinely have full fibre.<\/p>\n

Overall, the results of the survey and conjoint analysis reveal a high degree of confusion amongst consumers, which may translate into reduced take-up of full fibre, and a loss in consumer welfare as consumers face challenges in making choices which reflect their true preferences. This is where the labelling system gets proposed as a solution.<\/p>\n

We note that the simplified label design proposed in the conjoint study appears to be similar to those Energy Performance Certificates<\/strong> (EPCs) that you often see on houses and electrical devices, with bars of decreasing size (labels going from A to D). The idea being that gigabit style full fibre services would get an A, while slow ADSL<\/a> copper lines might get a D etc.<\/p>\n

\"WIK-Consult_Broadband_Label_Design\"<\/p>\n

The study found that the introduction of a label together with an information campaign has a “substantial positive impact<\/em>” on the take-up of full fibre, with take-up increasing by approximately 40%, and seems effective at promoting take-up of full fibre across all UK broadband consumers (i.e. would support purchasing decisions across all different demographics of broadband consumers).<\/p>\n

Finally, 61% of participants to the study considered that the label presented was informative and helped them when making purchasing decisions. For those who had the information treatment to explain more about the label, the impact was greater, with 68% claiming it helped inform their decisions.<\/p>\n

Greg Mesch, CEO at CityFibre<\/a>, said:<\/strong><\/p>\n

“The huge potential for broadband labelling to improve awareness, trust and take-up of Full Fibre is great news for consumers and for the country. With nationwide rollout ramping up fast, Full Fibre will soon be within easy reach of most homes and businesses. Now is the time to focus on helping them to switch, so we can unleash the economic benefits of Full Fibre as quickly as possible and bolster the investor confidence needed to complete the nationwide rollout.”<\/p><\/blockquote>\n

At this stage we don’t know what direction GigaTAG will take on all this and at the end of the day it can only advise the Government on what course to adopt, but a wider industry consultation may be required before introducing any such changes. GigaTAG’s final set of recommendations to Government are expected this May 2021<\/strong>.<\/p>\n

Meanwhile, we can’t help but feel that it might just be simpler to focus on ensuring that all ISPs promote the required average download and upload speeds (a median as measured at peak time) on their products. At present some ISPs continue to hide their slower upload rates and some smaller providers are still showing maximum speeds, rather than the peak time average. Suffice to say there’s room for improvement all round.<\/p>\n

On the other hand, we might not even need to be considering a labelling system if it wasn’t for the ASA’s dogged instance that calling slower hybrid services “fibre broadband<\/em>” is all fine and dandy. Lest we also forget that, for most people, just being able to access a gigabit-capable broadband network is the first hurdle that still really needs to be crossed (at present this covers c.40% of UK premises).<\/p>\n","protected":false},"excerpt":{"rendered":"

A new report from WIK-Consult, which was commissioned by CityFibre, has claimed that the introduction of a new UK labelling system, with better information on broadband services, could increase consumer take-up of gigabit Fibre-to-the-Premises (FTTP) ISP products by 40% (i.e. an extra 1.6 million homes by 2025).<\/p>\n","protected":false},"author":1,"featured_media":26515,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[99,418,56],"class_list":["post-26514","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-asa","tag-cityfibre","tag-fttp"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nReport Claims Labelling Could Help UK Uptake of FTTP Broadband - ISPreview UK<\/title>\n<meta name=\"description\" content=\"A new report from WIK-Consult, which was commissioned by CityFibre, has claimed that the introduction of a new UK labelling system, with better\" \/>\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\/2021\/03\/report-claims-labelling-could-boost-uptake-of-fttp-broadband.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Report Claims Labelling Could Help UK Uptake of FTTP Broadband - 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