Knowledge Centre
28th July 2009
Broadband providers are not offering users the connection speeds they claim for their services, according to a report by communications watchdog Ofcom.
UK Broadband Speeds 2009 found that more than half of broadband users are receiving less than 50% of the speed claimed by their providers. The average speed for common services billed as "up to 8Mbps" (Megabits per second) was around 3.9Mbps.
In addition, almost one in five customers actually receives less than 2Mbps from an 8Mbps connection.
The report, which looked at the UK's nine largest internet service providers (ISPs), noted that it is impossible to receive the full speed advertised, as part of the capacity is always kept in reserve.
On average, 8Mbps customers received between 40-64% of the claimed speeds, while customers of Virgin Media - which uses a cable network rather than telephone lines - received on average more than 80% of the 10Mbps headline figure.
Ed Richards, chief executive of regulator Ofcom, told BBC Radio Four's Today Programme that it was "unproven" that UK technology businesses could be losing out to other countries - such as Korea - where higher internet speeds are commonplace.
However, he said that broadband is a "key infrastructure for this century", and that he hoped the report would be a spur to competition and to investment in speed, in addition to improvements in pricing and availability.
"It's important that consumers of all kinds, business and households, are able to understand the speeds that they are likely to receive and the speeds that they do receive," he added.
Ofcom has introduced a voluntary code which requires ISPs to provide advice to consumers about the speeds they are likely to receive in practice.
A spokesperson for the Federation of Small Businesses (FSB), which recently criticised the Government's vision for the future of broadband access, told More Than Business News that "proper action" was needed from the Government and ISPs to offer a service that keeps small businesses competitive.
"Research by the FSB shows that more than half of small businesses rely on the internet for up to 50% of their annual turnover, yet simple tasks such as emailing, marketing, buying and selling, are time-consuming because their broadband speeds are letting them down," he added.
IMAGE Rui Vieira/PA Wire
Broadband a slouch for many customers
UK Broadband Speeds 2009 found that more than half of broadband users are receiving less than 50% of the speed claimed by their providers. The average speed for common services billed as "up to 8Mbps" (Megabits per second) was around 3.9Mbps.
In addition, almost one in five customers actually receives less than 2Mbps from an 8Mbps connection.
The report, which looked at the UK's nine largest internet service providers (ISPs), noted that it is impossible to receive the full speed advertised, as part of the capacity is always kept in reserve.
On average, 8Mbps customers received between 40-64% of the claimed speeds, while customers of Virgin Media - which uses a cable network rather than telephone lines - received on average more than 80% of the 10Mbps headline figure.
Ed Richards, chief executive of regulator Ofcom, told BBC Radio Four's Today Programme that it was "unproven" that UK technology businesses could be losing out to other countries - such as Korea - where higher internet speeds are commonplace.
However, he said that broadband is a "key infrastructure for this century", and that he hoped the report would be a spur to competition and to investment in speed, in addition to improvements in pricing and availability.
"It's important that consumers of all kinds, business and households, are able to understand the speeds that they are likely to receive and the speeds that they do receive," he added.
Ofcom has introduced a voluntary code which requires ISPs to provide advice to consumers about the speeds they are likely to receive in practice.
A spokesperson for the Federation of Small Businesses (FSB), which recently criticised the Government's vision for the future of broadband access, told More Than Business News that "proper action" was needed from the Government and ISPs to offer a service that keeps small businesses competitive.
"Research by the FSB shows that more than half of small businesses rely on the internet for up to 50% of their annual turnover, yet simple tasks such as emailing, marketing, buying and selling, are time-consuming because their broadband speeds are letting them down," he added.
IMAGE Rui Vieira/PA Wire
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