‘Unlimited limits’ cause confusion
November 27, 2008 at 2:08 pm
Research from uSwitch.com has shown that 86% of broadband users still find service limits confusing. Worryingly, approximately 6 million customers think that they have an unlimited broadband service and about 7 million people have no idea what their limit is. This confusion has caused some customers to either reach or surpass their limits.
Last month, Sky attempted to reduce such confusion by introducing the first genuinely unlimited service. The revolutionary Broadband Max service is unusual in the world of broadband, since Sky removed the fair usage policy from its terms and conditions. Most broadband providers still advertise their packages as unlimited whilst continuing to impose limits in reality. The frustrating thing is that the Advertising Standards Authority currently lets providers unfairly describe their packages as long as the details are stated in the small print. As we all know, most consumers never read fair usage policies and some do not even know what they are.
The Head of Communications at uSwitch.com, Tim Wolfenden, believes that the solution to the confusion lies in preventing broadband companies from classing their packages as unlimited if they do actually have limits. He was also quick to point out the importance of this happening quickly, since broadband usage levels are increasing all the time as a result of more people using services such as on-demand television. Wolfenden also urged consumers to read all the terms and conditions thoroughly before purchasing any broadband package and was quick to praise Sky for leading the way in removing fair usage policies and making their services transparent.
BSkyB aim to acquire Tiscali
November 18, 2008 at 1:24 pm
Tiscali has confirmed that it is currently holding talks with BSkyB over plans to sell its UK business to the broadcasting giant. If successful, the deal, reported in the press over the weekend to be worth approximately £450 million, will see BSkyB acquire a broadband provider which currently has nearly two million customers in Britain.
The broadcaster would then be behind only BT and Virgin Media in the highly competitive broadband market. Broadband giant, Virgin Media, currently has approximately 3.8 million customers.
Tiscali has been up for sale since earlier this year and Carphone Warehouse, a company which was previously in with a great chance of acquiring the broadband provider, is no longer involved in the bidding war. Vodafone and BT have also pulled out of the auction recently.
Vodafone’s decision to step away from the bidding process has come as a particular surprise, since the company once stood as firm favourites. The company’s apparent willingness to acquire both Tiscali’s UK and Italian broadband operations had put them in a very strong position.
If Vodafone had wanted to acquire Tiscali’s Italian operations, they may have had to fight against strong competition from companies including Wind, which is the third largest mobile operator in Italy, and Swisscom, which currently owns Italy’s Fastweb.
A couple of weeks ago, BSkyB announced impressive quarterly results. Its broadband customer numbers have increased to almost two million, with one in five customers of Sky choosing to take up the service. Furthermore, the company’s total customer numbers have exceeded nine million.
Vodafone in hot water
November 12, 2008 at 2:50 pm
The Advertising Standards Authority (ASA) has criticised Vodafone for making a series of unfounded claims in a recent TV advertisement. The network operator professed to own the fastest and most reliable mobile broadband service in the galaxy but, following a number of complaints from members of the public and rival companies, the ASA found Vodafone’s assertions to be untrue, and therefore inappropriate for consumer consumption.
Vodafone commissioned the independent wireless engineering company, LLC International, to produce a report testing the comparative speed of some of the most popular wireless networks in the UK. Whilst the study did demonstrate that Vodafone was the fastest wireless broadband provider for small businesses and other corporate entities, the ASA was quick to point out that there was no evidence to suggest that Vodafone’s domestic service was any better than that provided by Hutchinson 3G or T-Mobile.
The ASA has accepted that the company was not trying intentionally to mislead their customers but maintains that the research undertaken was not comprehensive enough to warrant such grandiose claims. The offending advertisement was pulled from broadcast but Vodafone continues to display the same advert, albeit as an image, on their website.
Vodafone saw its share price fall to 112.9p last week amid growing concerns about the state of global markets. The provider is battling with BSkyB to purchase the British division of rival broadband company, Tiscali, but bosses are concerned that a recent profit slump could cripple its campaign. British Telecom and Nordic telecommunications giant, Telenor, also issued a profit warning.
Namesco introduce £1 broadband
November 4, 2008 at 12:23 pm
Broadband provider Namesco is offering internet access for just £1 per month. All customers who sign up to the provider’s Gold Broadband service before the end of October will be provided with fast speeds of up to 8Mb, a wireless router and set up for just £1. This amazing rate applies during the first three months only. After this period, a monthly charge of £14.95 will apply.
A minimum 12 month contract applies to the package but consumers can choose to pay a fee in order to terminate it early. If you do choose to terminate the contract, you should be aware that it will be fairly expensive. First time users of broadband will have to pay over £70 whilst those who have migrated to the ISP will have to pay approximately half this price.
The Gold Broadband service comes with a 1GB download allowance per month but this limit can be increased at a cost of £1 per additional GB. The great deal has been timed to coincide with National Get Online Day, which aims to educate people about everything the internet has to offer. The campaign has been designed to show people what they can do over the net. For instance, parents can pay bills whilst the kids can research their homework.
The operations director at Namesco, Jason Smith, has spoken publicly about the desire of the Broadband provider to give support to such campaigns. The £1 offer on the Gold Broadband service has been designed to emphasise the key message behind National Get Online Day: anyone can get online and discover how the internet can benefit their everyday lives.
