CONSUMERS need better information about broadband speeds says the Australian Competition and Consumer Commission.
“At the moment, it is difficult for consumers to access accurate information as broadband advertising is not focusing upon speed and performance," says Chairman Rod Sims.
A discussion paper published today calls for views on how consumer information about broadband speed and performance can be improved.
"Consumers are being presented with little information or vague claims like ‘boost’ and ‘fast’, or just pictures in advertising of athletes or animals.
"Consumers need accurate information about broadband speed and performance so that they can understand if what they are being offered will actually meet their needs,” Mr Sims said.
A discussion paper is calling for views on how consumer information about broadband speed and performance can be improved.
“Consumers are entitled to expect clear and accurate information about broadband services,” Mr Sims says.
In the first quarter of 2016, there were 2,159 issues reported to the Telecommunications Industry Ombudsman about slow data speeds. It was the top internet complaint issue, and more consumers contacted the TIO about internet complaints than any other issue.
Consumer information will minimise the potential for consumers to be misled, reduce consumer search costs, and assist consumers to make informed purchasing and switching decisions. This will encourage broadband service providers to compete on performance as well as price and inclusions (such as data allowances), says the ACCC.
“The ACCC believes that it is timely to consider what further steps need to be taken in Australia,” Mr Sims says.
Australia has around 7 million fixed broadband subscribers and a further 6 million mobile broadband users with Consumer demand for data is increasing (fixed network data demand grew by 40 per cent in 2014-15, from 0.96 million terabytes to 1.3 million TB).
The ACCC is inviting submissions on how information about broadband performance and speed can be improved, including views about the factors that may be inhibiting retail service providers from presenting this information.
The closing date for submissions is 25 August 2016.
The ACCC Broadband Speed Claims - Discussion paper and consultation questions for consumers are available on the ACCC Consultation Hub here: Consultation on broadband speed claims
