Ofcom launches broadband code of conduct

Ofcom has launched a new code of conduct for broadband providers to ensure UK businesses receive clearer information when they sign a contract.

Seven of the UK's leading business broadband providers have signed up to the new code, which calls on organisations to give customers the right to exit a contract if broadband speeds fall below the minimum guaranteed level.

The code is voluntary, but signatories agree to provide businesses with an accurate estimate of their expected speeds when signing up, as well as manage any problems customers have with broadband speeds.

The providers who have already signed up to the code include Virgin Media, TalkTalk Business, Virgin Media, Daisy Communications, KCOM and BT Business.

The Federation of Small Businesses has welcomed the move, saying the code of practice will allow businesses to compare providers and opt out of a contract if it falls below expectations.

Policy director for the Federation of Small Businesses Mike Cherry said: “The new Code of Practice announced by Ofcom is a timely and well targeted intervention in the business broadband market. To plan effectively, firms need accurate information on what speeds they can expect, and how much this will vary."

Sharon White, Chief Executive of Ofcom, added that the code will ensure organisations can "walk away from their contracts without penalty" if their broadband provider fails to provide the speeds they promise.

It is hoped that the code will plug what Ofcom dubs a "speeds gap" between what customers think they are buying and what they actually receive from providers.

According to a study by Virgin Media Business, one third of SMEs are unaware of how fast their internet connection actually is, and half admit to suffering from slow broadband speeds.

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