Ofcom examines broadband speeds

The speeds advertised by broadband providers are being investigated by telecoms regulator Ofcom following numerous studies that suggest consumers are being misled.

Internet service providers (ISPs) typically promote their services by highlighting the fastest connection users could potentially receive.

However, many subscribers are unable to receive such speeds because of high levels of online traffic and their distance from the local telephone exchange.

Ofcom, which will examine the market for six months, claims that only half of users signed up to an 8 Mbps deal are actually able to surf the web at the advertised rate.

The watchdog has also published a new voluntary code of practice designed to help consumers receive more transparent information about broadband speeds.

The code will cover more than 90 per cent of the broadband market after 32 ISPs voluntarily gave their backing to it.

If providers fail to market their services more clearly Ofcom plans to introduce a statutory code.