(Image Credit: iStockPhoto/a_crotty)
The Australian Competition and Consumer Commission (ACCC) is calling on consumers to provide information about their broadband performance so it can be compared with the speeds and service levels that were advertised before they signed up.
The ACCC reports that 2,159 issues were lodged with the country’s telecommunications ombudsman in the first quarter of 2016, with the majority of complaints focusing on slow broadband speeds.
“Consumers are entitled to clear and accurate information about broadband services. At present, it can be difficult for consumers to obtain reliable information because broadband advertising often fails to focus on real-world speed and performance,” said ACCC Chairman Rod Sims.
Although the ombudsman handles a wide range of telecommunications issues, more complaints related to internet service than any other category.
“Consumers are often shown little concrete information or shown vague claims such as ‘boost’ and ‘fast’, or simple images of athletes or animals in advertisements. People need accurate, meaningful information about broadband speed and performance so they can judge whether an offer will meet their needs,” Sims added.
No specific providers were named in the ACCC’s statement, though there are many examples of the kind of potentially misleading advertising Sims described. Clearer comparisons and realistic expectations would help consumers assess plans more effectively.
Many consumers struggle to understand what advertised speeds mean for day-to-day use, even when exact numbers are provided. To help, some providers have started using more relatable comparisons—such as how long it takes to download a typical movie or music album—to illustrate likely performance.
Australia had roughly 7 million fixed broadband subscribers and around 6 million mobile broadband users as of December 2015 (ABS). Consumer demand for data is rising rapidly: fixed network data usage grew by about 40 percent in 2014–15, from 0.96 million terabytes (TB) to 1.3 million TB. Given this growth, it is important that the ACCC can ensure consumers understand what they are paying for and that providers deliver the level of service promised.
Consultation questions for consumers are available on the ACCC Consultation Hub. The closing date for submissions was 25 August 2016.
How do you feel about the way broadband speeds are marketed? Share your thoughts in the comments.