Broadband Brits ‘online five weeks a year’
July 30, 2007 at 5:07 am
With over 13 million UK households now switched onto broadband, and more than four million new internet subscriptions in the last two years alone, it will come as no surprise that Britons are becoming addicted to the net.
According to a new study by independent switching service uSwitch.com, the average UK internet user spends 15 hours online each week. Annually, this amounts to 34 straight days – more than one calendar month! Just to put this figure further into perspective, it is more time than the average person spends eating and drinking, bathing and grooming, or going out.
The research also revealed that about 780,000 of the most connected adults now spend more time networking online, through social media websites such as MySpace and Facebook than they do socialising in real life. In fact, the study of 10,500 broadband users indicates that social networking has now moved ahead of online shopping, banking and media downloading/streaming to become the most popular online activity after browsing the web and emailing. People now spend an average of six days a year ‘virtual networking’.
“It’s very exciting to see Britain taking broadband by the scruff of the neck and making full use of the online world in today’s demanding 24/7 environment,” said Steve Weller, head of communications services at uSwitch.com. “The uptake of broadband in the past few years has been nothing short of explosive and this will certainly continue, especially with the constant innovation in the market.”
He also made mention of the rapid rise of social networking websites over the last two years, which have made a deep and lasting impact on the way that people use the Internet to communicate with one another. Since its inception, MySpace has reached over 100 million users, while the second most visited site of its kind, Facebook, now has over 30 million members.
“We are not surprised to find that the average internet user is spending nearly a week a year socialising online. Consumers from all walks of life are embracing the trend – while three quarters of those visiting social networking sites are aged 18 to 29 years, a third of the over 50′s are also taking part in the online phenomenon.”
VoIP 999 access to become mandatory
With so many British consumers spending a record amount of their time online, telecoms regulator Ofcom has ruled that all Voice over Internet Protocol (VoIP) services which allow users to have voice conversations over the internet must provide access to the 999 emergency call facility.
It is estimated that as many as 15 per cent of broadband households use VoIP services. While most of these 2.4 million customers use VoIP as a supplement to a landline, an increasing number are implementing it as their primary means of telephone communication.
Some VoIP providers – such as BT and Vonage – already allow users to make 999 calls. In March, Ofcom made it necessary for all providers to make it clear whether or not their service included access to emergency calls.
AOL to give free laptops to entice new customers to their broadband service
July 26, 2007 at 1:05 am
The latest carrot to be dangled by those reliable old Internet Service Providers (ISPs) is not the usual free connection offer, nor is it free hardware, not even free internet, but free laptops.
AOL UK has teamed up with The Carphone Warehouse and is offering brand new Dell laptops worth up to £500 absolutely free to new customers. All you have to do is sign up for a two year contract this September. The free Dell Inspiron Laptop comes with:
- Windows Home Vista Basic
- 1GB RAM
- 80GB Hard Drive
- 15.4 inch screen
- Intel Celeron Processor
- DVD writer
- Free wireless router, and is
- Wi-fi enabled
It then costs £14.99 to have the laptop delivered and after this a minimum monthly tariff of £19.99. Over two years, that’s a total cost of £495, which amounts to just less than the cost of the “free” laptop. Orange is already offering a similar deal. It has joined up with Curry’s to tempt new customers with a £300 discount off selected laptops. The minimum deal here is:
- Laptop with Celeron Processor
- 15.4 inch screen
- Wireless enabled
- 256MB memory
- 40GB Hard Drive
- DVD rewriter
Like AOL, there is a minimum contract of 2 years but here the lowest monthly tariff is a bit less at £14.99 a month.The Carphone Warehouse also joined up with Talk Talk, a company which got into deep water a few years ago with its notorious ‘broadband for life’ offer. This time it is giving away free high-speed internet in exchange for an 18 month contractual commitment.
So why are these huge companies so desperate to lure customers with such lavish presents?With increasing scepticism surrounding almost every single ISP, more and more customers are switching providers on a regular basis. This is costing the ISPs a fortune. The deals are designed to keep you, the consumer, in one place for a substantial length of time. But it is a big risk being tied to one of these companies, as suggested by a recent Which? survey of the best ISPs. It doesn’t seem surprising to see that AOL came 4th from bottom overall and Orange 3rd from bottom.An existing Orange broadband customer, who had taken advantage of the deal, said on a Guardian forum page that after receiving no connection at all for weeks he eventually contacted OFCOM and then a solicitor before resolving the problem. It seems sensible to stay fairly sceptical about the current bout of ISP generosity, given the continuing reports of poor service provision. It might seem like a very tempting offer, particularly for pensioners or parents of students, but the actual laptop provided doesn’t seem particularly special. Certainly not when bundled in with a long term commitment of 24 months.A Dell spokesman, Ron Garriques, told the Daily Record that “This is part of our commitment to allow as many people as possible to enjoy the benefits of a wireless digital home.” But do these benefits include an ISP (in AOL) that is notoriously bad at customer services, and even prevents you from leaving if you are unhappy with its service?
Lack of knowledge about wireless broadband hindering its adoption in the United Kingdom
July 12, 2007 at 12:34 pm
A recent poll by the website BroadbandChoices has suggested that internet users in the United Kingdom are largely ignorant of the advantages associated with wireless broadband.
Wireless broadband – otherwise known as WiFi, provides internet users with a number of benefits. Wireless internet connections preclude the need for unsightly wires and Ethernet cables. In addition, it is possible for several computers to make use of one broadband connection and users are able to surf the net from any location within reach of the signal.
According to BroadbandChoices, internet service providers (ISPs) must bear much of the blame for consumers’ lack of knowledge. Consumers are often ignorant of the basics of wireless internet connections. Many are even unaware of what is meant by the term ‘wireless broadband’. A worrying number of customers believed that having a wireless internet connection would require them to install special packages. In reality, consumers have a choice on how to install wireless internet systems and it is possible to obtain such a connection simply by using an existing phone line. According to Michael Phillips, Product Director for BroadbandChoices “This misconception could be down to ISPs giving the impression that they are offering a ‘wireless package’ when they are just providing a normal broadband connection with a wireless router as part of the deal. Anyone with broadband can have a wireless connection – they just need the right router, and you can either get this from your provider or from any computer hardware retailer.”
The BroadbandChoices poll revealed that consumers frequently cited trivial reasons for failing to take advantage of the WiFi services available. A staggering 44% of users were concerned that they would be unable to deal with the “technicalities arising from wireless broadband.” In particular, those polled were concerned about whether or not they would be able to install wireless routers themselves. Michael Phillips however argues that such fears are unfounded: “Wireless routers are easy to set up. Also, if you get one direct from your internet service provider, which most of us will, it will arrive preconfigured with all the right settings. Going wireless is not at all complex – it’s as easy as plugging your phone cable in when using a traditional fixed-line broadband service.” Another 27% of consumers stated that they were unwilling to use WiFI services because they were worried that doing so would make them more susceptible to identity theft – a wholly unfounded fear. WiFi services provide users with just as much security as other forms of broadband. Users simply need to ensure that they have the right security programs and virus protection software in place. Finally, the BroadbandChoices poll revealed that 25% of users were unwilling to switch to WiFi because their current ISP did not offer the service.
Wireless internet connections have a number of important advantages over existing broadband services. If you would like to switch to a WiFi connection, but are unsure of which ISP to choose, it is wise to consult consumer guides – the magazine Which? is an excellent example.
Is Tesco Broadband as good as their Value Baked Beans?
July 12, 2007 at 12:29 pm
It was only a matter of time before Tesco joined the world of the Internet Service Providers (ISPs). Tesco began in the 1920s as a mere market-stall in London’s East End and has gone on to control over a third of the UK’s grocery market, notching extraordinary profits of over £2.5 billion in 2007 alone. Tesco plans to conquer the US has secured 100 sites ready for the end of 2007 for the US version of a Tesco Metro called Fresh and Easy. Tesco now provides: insurance, car breakdown, credit cards, DVD rentals, travel, savings, loans, phones and even contact lenses…but what about the internet market?
ISPs are a very tough business to crack. Although nearly every home uses the internet, this doesn’t make it any easier to convince customers of which ISP they should choose. Everyone seems to have gripes about their particular service, so why did Tesco think it can do any better? For a start they only do so much. NTL provide the infrastructure and the actual service is carried out by a BT line, so Tesco (like many others) are merely the middle-men. This means that if there are any problems with the connection, which almost all ISPs face, then Tesco can actually do very little about it and at a higher than average cost of 50p per minute for the helpline, would you want to phone them anyway?
Tesco offers a fairly average selection of broadband packages, starting with the Value package (complete with familiar blue-striped label so there is no confusion as to how much you’re spending) at £13.97 which is 512k speed and a 3GB limit. Then at the other end the Finest package (complete with more glamorous silver label) at £24.97 for 2Mb speed and no download limit. All services come with free modem, free connection and free installation, but require an operational BT line, which is an additional monthly payment if you don’t already have this. You are then tied to Tesco for 12 months, which isn’t standard practice for all ISPs as many give you the option to leave if you aren’t happy. Tesco charges you £100. Although the prices are rather expensive, is the actual performance satisfactory?
There will always be the odd niggling problem with ISPs, as every computer and customer is different, but according to Which? Online Magazine in a poll of 11,000 users, Tesco did remarkably well and was ranked 8th out of 28. This was much higher than the companies Tesco actually rely on such as NTL and BT. Strangely there isn’t an obvious reason as to why Tesco scored this high and why customers seemed content. The packages aren’t better, the connection’s reliability isn’t better and the prices certainly aren’t cheaper. Perhaps it’s just the familiarity that people like? Perhaps it’s the fact you can add points to your Clubcard? Perhaps it’s just the simple option? A recent book by Andrew Simms, entitled Tescopoly, describes supermarkets such as Tesco as “the economic equivalent of invasive species: hungry, indiscriminate, often antisocial and destructive”. Maybe the internet and Tesco have a few things in common then.
Consumers failing to receive the high-speed broadband services they paid for at the time of subscription
July 12, 2007 at 12:23 pm
In a worrying development, a survey by Moneymarket.com has revealed that almost 20% of broadband customers are not receiving the high-speed internet services that they paid for when subscribing. Internet speeds were found to be markedly below the levels advertised by providers, leaving many consumers cheated. Rural subscribers, who tend to live further away from the exchanges that deal with internet traffic, have been particularly hard hit. On the other hand, the report found that urban broadband users were more likely to receive the high-speed services they paid for. Slow connections prevent consumers from taking advantage of the benefits of broadband services, namely the ability to rapidly download television shows, movies and music. Britain’s broadband problem is particularly shameful given the fact that connection speeds are already slower in the United Kingdom compared to countries in continental Europe. In France, for example, 24MB packages are the norm.
Subscribers to Sky’s broadband services were particularly upset over the quality of services they received. Its popular ‘up to 16MB’ service should in theory provide subscribers with high-speed connection and download services. However, in practice, some 78% of consumers had connections speeds of only half the advertised level. Sky has also been criticized for failing to provide consumers who have reported faulty connection speeds with adequate help. A similar fate was in store for subscribers of broadband services offered by BT, Orange, Tiscali and TalkTalk. As if to add insult to injury, individuals who call up company help lines are often required to pay fees of up to 25p per minute.
Sadly, many individuals are unaware of the fact that their internet connections are running at speeds which are below those advertised. As such, consumers are often willing to fork out the high fees associated with these services. Providers however, are often aware of the fact that their services are not up to scratch. It is true that part of the problem lies with the quality of the technology available today and limited levels of investment in infrastructure. Telephone systems were not designed to efficiently deal with the high-speed ADSL technology that allows for broadband internet connections. Currently, broadband providers have to employ ‘technological workarounds’ using phone cables rather than a system which is designed exclusively to provide high-speed connection services.
Whilst there is no doubt that this is a clear case for intervention on the part of the UK’s Advertising Standards Agency, until tighter legislation has been put into place, it is necessary for consumers to deal with matters themselves. In particular, it is essential to look around for a provider that has a history of offering honest services. Consumer organizations such as Which? can provide you with unbiased information on the matter.
Beware: The “unlimited” broadband might not be unlimited
July 2, 2007 at 3:12 am
Despite promises of “unlimited” broadband, internet service providers (ISPs) will disconnect customers who are considered to be using their broadband “excessively”, a study by independent price comparison service uSwitch.com has revealed.
The research revealed that 250,000 people switch broadband providers every month, but that 71 per cent of customers are unaware that their new “unlimited” broadband packages entail hidden “fair usage” policies, effectively placing a limit on the unlimited.
With the growing popularity of ‘TV on demand’, as well as computer game and film downloading services, it is estimated that more than nine million broadband users are at risk of having their service limited, suspended or terminated by providers who deem their usage excessive.
Steve Weller, head of communications services at uSwitch, said: “Quite simply, broadband companies should not be allowed to advertise an unlimited broadband service when, in reality, a limit exists. Even if the limit is high, as is the case with the majority of the services we have studied, the fact remains that it still exists and we are alarmed that nine million broadband users seem unaware of this.
“It appears that we are being, in the best case, dazzled, or in the worst case, misled by the glamorous, expensive advertising campaigns that we are currently seeing on our TVs. It could be argued that consumers are being led down the garden path and are being let down by the terms and conditions that lie hidden beneath the glitz.”
The switching service has called for a standardisation of fair usage policies which fully quantify “excessive” usage and clearly define the policy for limiting, suspending or terminating the service provided to customers who go over this limit. It has also demanded that the term “unlimited” be banned from broadband advertising unless there are genuinely no restrictions in place, and that prior warnings to a service termination are made compulsory.
Orange cautioned over “unlimited” ad
Orange is the latest broadband provider to have been rapped by the Advertising Standards Authority (ASA), following the printing of a new magazine advert which marketed the firm’s home broadband service as including “unlimited” downloads and calls.
Following an investigation, the ASA concluded that Orange had breached the code of conduct by making no mention in the small print of its ‘fair usage’ policies which prescribe 40 GB monthly download and 1,000 minute monthly calling limits. It was also found that Orange was capping customer’s broadband speeds depending upon the amount of network traffic.
A spokesperson for the ASA commented: “We concluded that, because it did not include a reference to Orange’s fair usage policies for both the talk service and the unlimited downloads, the ad was misleading.”
In the last year, the ASA has banned the Carphone Warehouse from advertising “Free Broadband Forever” and cautioned broadband provider Be for suggesting that all customers can attain transfer speeds of 24 Mb/s.
Nearly 10,000 consumers signed an e-petition on the 10 Downing Street website in June, calling for an end “unlimited” broadband advertising, and the Internet Services Providers’ Association (ISPA UK) has urged its members to exercise caution over their use of the term.
