90% of UK Broadband Companies Sign OfCom Code
June 24, 2008 at 3:27 pm
Government watchdog OfCom has devised a voluntary scheme for the benefit of Broadband consumers. The scheme, which over 30 companies have signed up for, will mean that providers have to be up front about Broadband speeds and allow their customers to drop down to lower speeds if they are not happy with the package they have signed up for.
The code has been devised following a rise in complaints over the last year concerning the speed of Broadband. Internet Service Providers (ISPs) who have signed up to the code will now have to provide customers with a maximum speed available, resolve technical issues to improve speed, and tell customers about their usage limits as well as letting them know when they have exceeded their download limits.
Although this is a voluntary scheme, 90% of ISPs have signed up for it and the watchdog has warned that if the code isn’t followed, it will consider introducing more formal regulations.
All in all this is good news for the Broadband consumer, especially following reports that the UK is lagging behind in the Broadband speed market, with some areas only able to reach a download speed of 2 or 3mbps- if any at all.
UK broadband prices set to rise
June 17, 2008 at 2:33 pm
According to a recent Guardian article, broadband prices in the UK are set to rise.
The main problem at the moment concerns BT’s Openreach unit, which was set up in 2005 to allow other providers to use their lines. The system allows other companies to rent out the lines in order to take control of the lines of their own customers. This process is known as ‘local loop unbundling’. BT has asked OFCOM to investigate the prices that it currently charges its rival companies to use the lines. The review will probably not be completed until the end of the year but it already looks likely that price increases will take place.
Companies are complaining about the potential rises, especially since costs have already increased significantly in the past. Carphone Warehouse, which relies upon the service to provide its cheap broadband, claims that the service provided by Openreach is not good enough to warrant another price increase. BT, on the other hand, has stated that charges have risen as a result of the unavoidable cost of maintaining the copper lines.
However, it is ultimately the consumer who will suffer from these price increases, since all the companies will have to raise their own service prices. The advice for the customer is to make the most of the cheap prices whilst they last, because next year cheap broadband may well be a thing of the past.
Free laptop broadband offer
June 10, 2008 at 2:09 pm
According to a recent article in The Independent, Carphone Warehouse is going one step further in the attempt to increase its customer base for its broadband services, by introducing a new offer of a free laptop when certain broadband packages from 3, T-Mobile, Orange and its own product, Talk Talk, are purchased.
The move is seen as being the next big step in expanding the broadband market, because it seems to mirror a similar pattern to the one seen with mobile phone packages. Eventually, people began to receive free PSPs and Ipods when they committed to a certain monthly contract.
However, it doesn’t stop there. People who take advantage of the scheme will be able to choose from six different laptop models and will then have the opportunity to upgrade to higher-spec machines for an added price if they so choose. This appears to be a great promotion, especially when compared with the offer launched last year from AOL Broadband, which provided just one model.
However, there have been warnings from industry experts about hastily committing to a contract without reading the small print. According to Rob Barnes, the head of broadband and mobiles at moneysupermarket.com, “once you start breaking it down […] you soon realise this is just another marketing ploy”. The offer is for an 18 month contract at £35 per month, and the deal only offers 3Gb of data allowance, which he describes as “highly restrictive to medium or heavy internet users”.
It’s possible that if customers choose their package carefully and make sure they shop around to find the cheapest deals available, the amount that they could save over the contract period could be enough to buy an even better laptop. It is therefore worth being cautious before taking up an offer which seems too good to be true.
