Ofcom introduced the Codes (Residential and Business) to ensure providers of fixed access broadband give residential and business customers accurate information on the speeds they can expect to receive from their broadband services. In March 2018, Ofcom made changes to the Codes to improve the information provided to customers when they buy broadband services and strengthen customers’ right to exit when speeds are not met, which were implemented from 1 March 2019. The current Codes mean that broadband shoppers:

• are given a minimum guaranteed download speed before signing up to a new deal;
• are told what to expect during peak times when more people are online, and networks are more congested; and
• have the right to exit their contract without penalty if speeds drop below the guaranteed level and this isn’t fixed within 30 days.

Ofcom has now published a report on the 2018 Codes setting out its findings on how they are working.

Overall, based on the wide range of data provided, Ofcom found that the signatories are meeting the requirements set out in the Codes. These voluntary Codes are therefore delivering protections to broadband customers as Ofcom intended.

In summary, Ofcom found that:

• most broadband customers currently have broadband contracts with a signatory to the Codes and so have access to the protection provided by the Codes;
• customers are being provided with clear and realistic broadband speed information at the point of sale;
• most speed issues are being resolved within 30 days, with only a small number of customers using their right to exit contracts; and
• processes are in place which ensure signatories’ ongoing compliance with the Codes.

Ofcom also identified areas where improvements could be made:

• accuracy: currently, observed line speeds are only available for customers of signatories who use Openreach fibre-to-the-cabinet (FTTC) products, but not for customers using Virgin Media cable products and those using fibre-to-the-premises products; going forwards, Ofcom expects signatories to develop an approach to provide observed speeds across all technologies as soon as possible rather than relying on estimates; this will be of increasing importance as full fibre networks are rolled out more widely and relied on by an increasing number of customers;
• timeliness: some broadband operators are asking customers not to report speed problems for newly connected FTTC products for between three and 14 days to allow the technology time to adjust to the line speed to give the best stable performance for a given line; Ofcom considers 14 days to be too long, and recommend that any period to allow the line speed to stabilise should be as short as possible; and
• transparency: Ofcom identified several areas where the collection and recording of data could be improved by some signatories to help demonstrate compliance with the Codes for both internal purposes and future Ofcom reviews.

Ofcom has also published a consultation on updating the Codes so that the right to exit that applies to broadband and other bundled services is in line with Ofcom’s revised General Conditions of Entitlement, which will be implemented from 17 June 2022.

Ofcom is proposing:

• updating the Residential Code definition of a “bundle”: to amend the definition of a “bundle” in the Residential Code so that the customer’s right to exit will apply to their broadband and bundled services in the same way as their right to exit will apply to their contract and bundled services as set out in the revised GCs;
• updating, within the Business Code, the definition of a “bundle” for small businesses: for small businesses (those with ten or fewer individuals), as with the Residential Code, Ofcom is proposing to amend the definition of a “bundle” in the Business Code so that for small businesses, their right to exit will apply to their broadband and bundled services in the same way as their right to exit will apply to their contract and bundled services set out in the revised GCs; and
• retaining, within the Business Code, the existing definition of a “bundle” for larger businesses: for larger businesses, to retain the existing Business Code’s definition of a “bundle” to ensure the existing protections continue.

Ofcom considers that these proposals will help provide a consistent set of regulatory rules (based on the revised GCs) relating to bundles and who they apply to, making them easier for customers to follow and more straightforward for broadband providers to implement. This simplification should reduce the likelihood of misunderstanding or misinterpretation should disputes arise.

Ofcom invites responses to the consultation by 22 June 2022. It plans to issue a statement setting out its final decision on the updates to the Codes in autumn 2022-23, alongside the revised Codes. It is proposing that changes should be implemented within three months of the statement being published. To access both the report and the consultation, click here.