A complex process for measuring broadband performance could discourage consumers from making price reduction claims against their provider
Revised telecoms law strengthens consumer protections: On 25 August 2022, BNetzA launched a consultation on planned rules for the ‘right of reduction’ (in consumers’ monthly bills) in the German mobile market. New consumer rights came into effect on 1 December 2021 via the updated Telecommunications Act (TKG). These give individuals the ability to reduce the contractually-agreed price for fixed broadband access or to terminate their contract without notice in the event of “substantial, continuous or regularly repeated discrepancies” in actual internet speeds experienced and the speeds promised by the provider. Consumers must supply proof using a broadband performance monitoring mechanism provided by the regulator. BNetzA is now seeking input on an equivalent proposal for mobile, which it hopes will help individuals to assert their consumer rights and, in turn, reduce the amount they pay.
Proving inferior mobile performance could prove challenging: It already appears that securing proof of below par performance will present a challenge. According to BNetzA, it is significantly more complicated to prove substandard speeds in a mobile network than in a fixed one because connections are not static – and given the different technologies, spectrum bands and devices involved. The decisive factor is how capable operators’ networks are in individual regions. The regulator therefore plans to use a scale of performance deviations to determine whether the right of reduction applies. It considers that possible deviations from promised speeds of 75% in urban areas, 85% in semi-urban areas and 90% in rural areas could be appropriate. As contracts often state maximum speeds of several hundred Mbps, BNetzA is confident that most consumers will still experience high transmission rates even with such deteriorations against the agreed level of performance.
Strict measurement requirements could put off consumers claiming: As BNetzA seeks and then reviews stakeholder comments, it will be developing in parallel a measuring tool for assessing mobile network performance. In the regulator’s view, sufficient proof of poor service should be based on 30 indicators (as it is in fixed), although mobile measurements should be spread out over five calendar days with six records per day. The process to measure fixed broadband speeds is already considered complex and not particularly user-friendly, with only 22,000 price reduction claims submitted by the end of June 2022. The mobile test could therefore be more onerous for consumers and set an even higher burden of proof. BNetzA should consider how it implements a proportionate performance standard if it wants the right to reduction rules to have any meaningful effect.
