What TRAI can learn from Ofcom’s regulation on Internet speed

Ofcom and broadband speed in UKTRAI (Telecom Regulatory Authority of India) needs to learn from the latest broadband regulation set by the UK communications regulator Ofcom.

Ofcom says all telecom operators should share details about the slower broadband speed users can experience at peak times. This means broadband operators should always ensure to give a minimum guaranteed speed to its users. The slower or minimum broadband speed should be revealed at the point of sale and in contracts.

The Indian scenario is different at present. Telecom operators advertise about the peak Internet speed to customers, saying “We offer up to xxx Mbps speed……and conditions apply” Indian broadband operators say the speed is subject to network congestion and the availability of Internet customers in a network during a particular time.

Ofcom says the regulation will also strengthen the broadband users’ right to exit from contracts if Internet speeds fall below a guaranteed minimum level. Broadband providers would have a limited time to improve speeds before they must let customers walk away penalty-free.

Indian broadband consumers do not have any right to receive any fund back as compensation if they do not get adequate broadband speed. Internet users in India also do not receive any compensation if some operators stop broadband service due to repair of road or repair of network, etc.

“For the first time, this right to exit would also apply to contracts that include phone and pay-TV services bought with broadband,” Ofcom said.

Lindsey Fussell, Ofcom’s Consumer Group Director, said: “We want broadband shoppers to know what they’re buying, and what speeds to expect.”

“So we plan to close the gap between what’s advertised and what’s delivered, giving customers a fuller picture before they commit to a contract. We’re also making it easier to walk away from a contract, without penalty, when companies fail to provide the speeds they promise,” Lindsey Fussell said.
Lindsey Fussell, Ofcom’s Consumer Group Director
Ofcom says broadband buyers must receive better information about speeds before they commit to a contract.

The average download speeds for residential customers are 34.6Mbit/s during the 8-10pm peak period, compared to average maximum speeds of 39.1Mbit/s, according to UK Home Broadband Performance report from Ofcom. The variation in speeds at busy times is more notable for cable connections than for copper-based services.

Ofcom said broadband speeds are not consistent throughout the day, often falling during busy periods when more people go online. This means ‘actual’ speeds can be lower than advertised ‘up to’ speeds.

At present, the Codes apply mostly to broadband over copper-based phone lines because speed problems often arise when buildings connected by copper lie a long way from a local telephone exchange or street cabinet.

The new Codes require estimates that reflect speeds at busy times, which can be a particular issue on cable networks, such as the one operated by Virgin Media.

Today’s plans are part of Ofcom’s work to deliver a step-change in service quality for broadband customers. This also includes automatic compensation when things go wrong, providing consumers with detailed information so they can shop around with confidence, and helping people secure the best deal for them.

Baburajan K