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    HomeFinancial/RegulationMis-sold broadband: will Ofcom ever see this fraud banned?

    Mis-sold broadband: will Ofcom ever see this fraud banned?

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    UK regulator talks tough

    UK regulator Ofcom has hinted that the nation’s misled broadband customers could get clearer and more consistent information about their service when signing up to a new deal. New proposals announced by Ofcom today, hint at ‘planned new guidance’ about the use of the terms fibre and full-fibre on their websites and in contracts. According to Ofcom, they should only be able to use this if their network uses fibre-optic cables all the way from the exchange to the home. Customers would also be given a short, easy-to-understand description of the type of broadband network technology they are signing up to.

    However, many UK consumers feel that Ofcom is effectively useless as a regulator. It allows the telcos license to mislead because, it says, full-fibre networks are currently being deployed at pace. Since some customers are now spoilt for choice, with a range of different technologies on off for their broadband service, it is assumed that the majority are happy. No even Ofcom has admitted that the term ‘fibre’ is applied inconsistently by the industry, sometimes being used to describe older part-fibre, part-copper technologies, leading to confusion among customers.

    Ofcom research has found that only 46% of customers who reported being on full-fibre broadband were living in areas where it is actually available. In addition, more than a quarter (27%) of broadband customers lacked confidence in understanding the language and terminology used by providers. “We also found that, when choosing a broadband service, more than half (53%) would find it useful to have a short description of the underlying technology used to deliver their services,” said Ofcom.

    Ofcom has existing rules requiring providers to give a description of the service they provide to customers. “However, we do not believe there is sufficient clarity and consistency in how the underlying technologies used to deliver broadband services are described,” it said, in a statement.

    So, we are proposing new guidance to ensure providers give information on the underlying technology of the broadband connection using one or two consistent terms. Providers should also give a more detailed explanation of these terms in a format that is readily accessible to customers. Ofcom now inviting views on these proposals which should be submitted by 3 May 2023. We will consider all responses before making our final decision, which we aim to publish later this year.

    “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,” said Selina Chadha, Ofcom’s Director of Connectivity.

    Though Ofcom has taken its time to even recognise a malpractice that has been in existence for years and could easily have been tackled, its initiative was welcomed by two CEOs of genuine fibre infrastructure builders.

    “There continues to be confusion around whether it’s super-fast, ultra-fast, full or part fibre” said Jarlath Finnegan, CEO of Giganet. Britain’s telcos have got away with it for too long, according to Greg Mesch, CEO of CityFibre. “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,” said Mesch, “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.”