A consumer body proposes going beyond the ‘traffic light’ system currently in place. Its shortcomings show that focusing instead on speeds could be the right approach
The traffic light system has not addressed all issues: In Italy, a labelling scheme has regulated broadband advertising since 2019. AGCOM set out a ‘traffic light’ system to help consumers distinguish between full-fibre connections (marked with a green label) from those using a technology mix (e.g. FTTC, which warrants a yellow label). Fixed copper connections and copper-based FWA are marked as red. The scheme has generally worked well to improve consumer awareness of full-fibre broadband, and has deterred operators from referring to ‘fibre’ for connections that do not warrant a green label. However, some issues remained unresolved, as ISPs advertise full-fibre connections regardless of whether they are available in a given area. There have been concerns that consumers could believe they are buying a full-fibre product, even when that is not available at their address. This week, the consumer body Adiconsum highlighted the shortcomings of the current framework, and called for new regulatory intervention.
Despite the labelling scheme, broadband advertising remains a jungle: In its letter to AGCOM, Adiconsum identified two main problems – the very technical language often used by ISPs, and the common reference to ‘up to’ speeds for fibre connections. Consumers struggle to understand the meaning of expressions such as GPON, EPON etc. and are not clearly told the typical or minimum speed available to them. The green label includes all the full-fibre technologies, and consumers only know which one is used after they have told the ISP their address. ISPs are also very inconsistent in their communication. Some do not specify the technology at all, and most do not explain the differences between them. Adiconsum singles out Iliad, whose recent fibre offer is advertised as up to 5Gbps – but the fine print shows that the speed over WiFi is up to 0.5Gbps. To address these problems, the consumer body proposes that AGCOM go beyond the traffic light scheme, which has successfully steered the market towards the correct use of the word ‘fibre’ but is now seen as outdated. Adiconsum believes the regulator should now require ISPs to always indicate the minimum guaranteed speed, and to specify the maximum possible speed for each technology.
In the UK, GigaTAG is proposing a different approach: Adiconsum’s criticism can perhaps be seen as vindicating the different approach that the Gigabit Take-up Advisory Group (GigaTAG) is advocating for in the UK. In its final report, GigaTAG recommends Ofcom adopt a labelling scheme – though one not based on technology, but on measures of user experience such as speed, which are more clearly understood by consumers. A ‘seal of approval’ could help consumers identify gigabit-capable connections. In its proposed plan of work for 2022/23, Ofcom notes it has convened an industry working group to develop common terminology for broadband services, including gigabit-capable networks. It is not yet clear whether it will adopt a labelling scheme as proposed by GigaTAG.
