ISPs' broadband packages promise too much

Are ISPs deliberately misleading firms by promising cheap broadband at unrealistically fast speeds?

Many internet service providers (ISPs) are misleading their business customers by promising unattainably high levels of broadband services at low prices, and should be held accountable by industry regulator Ofcom.

That is the view of broadband service provider Lixxus, which said false claims made by some ISPs selling 8MB/s and 24MB/s deals are undermining confidence in service suppliers, and they should be forced to be more transparent about service levels and pricing.

"The highest speeds are totally dependent on your distance from the exchange, " said Lixxus sales director James Kershaw. "Some of the larger companies have concentrated their ad campaigns on the highest speeds [possible] when the reality is that you have to be [extremely close to] the exchange to get them."

Chief executive Joe Kelly said the problem is compounded by the fact that many ISPs have yet to roll out their service to a large number of exchanges nationwide, despite launching national advertising campaigns claiming high-speed connections.

"BT’s local loop unbundling (LLU) led to many ISPs pushing 8MB/s and 24MB/s before rollouts got to critical mass," Kelly said. "With VoIP and quality of service becoming more of an issue now, it's more important to have faster connections, but most customers can't get the fastest speeds."

Kelly called on Ofcom to investigate these exaggerated claims, in order to create a level playing field in the market.

"Ofcom should do everything it can to help the market. It's hard to swallow for smaller ISPs [when they see] 8MB/s deals sold for £14.99 when [it is clear] it's not available everywhere," he said. "But Ofcom tends to be slow to react [to industry developments] – it only recently agreed LLU after years of negotiations with BT."