Ofcom moves to tackle confusion around different network technologies, 15 years since the problem emerged
Ofcom proposes guidance for broadband marketing: On 8 March 2023, Ofcom unveiled new draft guidance for operators that aims to ensure consumers get clearer and more consistent information about their broadband service. Under the proposed guidance, telcos in the UK would only be able to use the terms ‘fibre’ and ‘full fibre’ on their websites and in contracts if their network uses the technology from the exchange to the home. Ofcom states that the term ‘fibre’ is applied inconsistently by industry, sometimes being used to describe part-fibre, part-copper (e.g. FTTC) and cable networks, which leads to confusion among end users. The regulator also wants consumers to be given a short, easy-to-understand description of the type of network they are signing up to. Ofcom is consulting on its proposals until 3 May and intends to publish its final decision “later this year”.
Many consumers believe they have full fibre when they don’t: Ofcom’s research finds that less than half of users who reported having a full fibre connection live in areas where one is actually available. In the UK, rules require telcos to provide a description of their services; however, Ofcom does not believe the current framework offers sufficient clarity and consistency as to the underlying technologies deployed. The problem can be traced back to a 2008 Advertising Standards Authority (ASA) decision – maintained in 2017 – to allow part-fibre offerings to be advertised as fibre. A legal challenge by CityFibre was dismissed by the High Court in 2019. Amid a changing market landscape, the regulator’s proposals therefore aim to empower consumers to make more informed broadband choices. They were praised by several altnets, which welcomed action against a ‘misleading practice’ they consider has existed for far too long.
Ofcom pushes back against a broadband labelling scheme: Ofcom’s draft guidance is notable for several reasons, not least because 15 years will have elapsed by the time the new broadband marketing rules come into force. The decision to now focus on fibre advertising is also interesting in light of the Government’s targets for gigabit coverage, to which the upgrade of cable networks has made a considerable contribution. This potential disconnect between the Government and regulator could risk introducing exactly the kind of confusion Ofcom’s draft guidance seeks to reduce. Despite the recommendation of the Gigabit Take-up Advisory Group, Ofcom has not proposed to introduce broadband labelling, citing “significant practical issues”. As some countries (e.g. the US) press ahead with their plans for such a scheme, evidence from markets such as Italy suggest they have not been a silver bullet for transparency or fairness for consumers.
