Published on the 28/07/2016 | Written by Beverley Head
ISP speed claims face renewed scrutiny from the Australian Competition and Consumer Commission…
A discussion paper released this week is calling for suggestions about how clarity can be achieved so that consumers and businesses aren’t seduced by snazzy photos of athletes or animals and vague claims using terms like “boost” and “fast.”
According to the ACCC chairman Rod Sims; “At the moment, it is difficult for consumers to access accurate information as broadband advertising is not focusing upon speed and performance. Consumers are being presented with little information or vague claims… consumers need accurate information about broadband speed and performance so that they can understand if what they are being offered will actually meet their needs.”
According to the discussion paper accompanying the call for submissions some internet service providers are stating the product specification for the underlying fixed access service (for example, ‘up to’ 100/40 Mbps). According to the ACCC: “This might misrepresent the speeds that the retail broadband service can consistently achieve, especially during peak periods when most consumers will want to use the service.
“In other countries, regulators have taken steps to address gaps in consumer information, to minimise the potential for consumers to be misled about broadband speed and to encourage the provision of accurate speed information to consumers.”
Certainly the Australian public’s not entirely happy; ACCC cited statistics from the Telecommunications Industry Ombudsman which indicated internet speed was the number one complaint, generating 2,159 complaints in the first quarter of the year.
Admittedly, compared to the 7 million fixed broadband subscribers and 6 million mobile broadband users in Australia, just over 2,000 complaints seems a flash in the pan. However as the NBN rolls out, with a raft of claims about the speeds that will deliver, more scrutiny will be important.
The Communications Alliance which represents Australia’s telecommunications industry welcomed the scrutiny – but its CEO John Stanton argued that some of the ACCC’s own guidelines to the sector prevented internet providers from being too fixed in their claims of the speeds customers should expect.
“The ACCC guidance also requires ISPs to take account of a wide range of factors when they wish to make any statement about the data transfer rates available to consumers using their services.
“Some of these factors – including the need to consider the numbers of users of a broadband service within a customer’s premises, as well as the nature of the modem- device connection (e.g. cable or Wi-Fi) – are unrealistic for ISPs to identify on a customer- specific basis, thus making it difficult or impossible to make any claim about data transfer rates.”
He said the Alliance was currently working on developing an education package that might help consumers and businesses navigate their selection of the best internet service for their needs.
Submissions are sought by the ACCC until 25 August.
