Broadband Speed Claims: Industry Guidance

 

The internet has become, in the last 10 years, one of the most important things in our lives. According to Internet World Stats, the average New Zealand broadband user spends up to 32 hours per week online. Also, almost 30% of all workers in New Zealand are employed remotely.

This means that the need for high speeds is constantly increasing for both wireless and cable internet. This lets people work faster and more comfortably, get the data they need more quickly and be more productive on average.

But with a rise in demand for fast Internet connection, people have started noticing that the speed claims aren't the same as the delivered final product.

In this article, we'll see what the industry standards for broadband speed marketing are and how important they are in today's hyperconnected world.

What is Broadband Speed?

Broadband speed is a term used to describe how fast your internet is. It can relate to your WiFi performance, home internet, and mobile phone data speed.

Broadband speed is usually measured in megabits per second (Mbps). Bits are microscopic units of data, with a megabit representing a million bits. The higher the number of megabits per second, the more data you'll be able to download or upload with your internet connection.

New Zealand ranks 27th among the top countries with the highest internet speeds. Its average fixed broadband speed was measured at 110.72 Mbit/s in 2022 for the download, while the average upload speed was 87.23 Mbit/s.

Usually, upload speeds are much lower than downloads. When upload speeds reach around 80 Mbps, the download speed would go to 110 Mbps, for example. It's not that hard to test it if you want. You can even do it on your iPhone!

This discrepancy happens because high-speed Internet providers have designed their systems in such a way that uploading is much slower than downloading, just because the latter is being done more frequently than the other.

Also, broadband speed varies depending on the type of technology you use. You can have wireless, fibre, satellite, cable or DSL. All these provide a different connection and quality of the services supplied.

Can I Increase my Broadband Speed?

Yes. The simplest method to increase your broadband speed is to get a better package from your retail service providers. They may install a better modem in your house and will get you fibre if you don't have it yet.

However, there are also some tricks that can increase your speed without paying more money for it. For example, you can reduce the number of connected devices to improve the overall WiFi performance. Or, you can move the router closer to your workstation.

If you want a more in-depth guide on how to increase broadband speed, you can check this article out.

 

What is the Industry Guide for Broadband Speed Claims?

 

Last 2022, the TCF published a guide for retail service providers on advertising and marketing their broadband services. It was stipulated that the companies providing fixed-line broadband services must correctly advertise the broadband speed they can provide and clearly indicate typical peak speeds.

The standards published by the TFC will be updated every 12 months. The updates are meant to measure and provide actual information on download and upload speeds after the integration of different technologies into the broadband industry.

For example, if a new type of fibre is invented in the next couple of years and the speed claims will get ten times higher, the current TFC document won't be relevant to the situation on the market. That's why this type of voluntary code is updated as many times as possible.

The suite of rules and guidance was created in consultation with big network providers in New Zealand. The government also convened with the representatives of the companies that were involved in the construction and development of the national broadband network.

What is TFC and When It Was Founded?

Established in early 2002, the New Zealand Telecommunications Forum (TCF) is an incorporated society that plays a vital role as a credible and effective voice for the telecommunications industry.

They work to provide the most benefit to New Zealand consumers, bringing industry participants together to solve regulatory, policy, and technical issues with broadband connection, mobile phone usage, and more.

They also work with privacy issues, number portability, and consumer protection to create the best environment possible.

Why Do We Need Industry Guidance for Broadband Speed Claims?

Imagine you go to the supermarket to buy a sandwich you saw in an advertising campaign on TV. The ad alleged that the sandwich will contain the best chicken breast in New Zealand. You, as a chicken meat lover, get motivated to buy that sandwich.

Of course, if the company is using the best meat there is, the price is accordingly higher than those of normal sandwiches. So, you take your expensive purchase home and, after the first bite, you understand that the chicken breast is low-quality, and there's not much of it in the sandwich.

The same goes for internet providers. The broadband speed claims are so promising, you'll expect to have higher speeds than NASA. In reality, you'll only have a part of that speed when the network is clogged up. Hence, the broadband provider is simply lying to you.

That's why we need industry guidance for broadband speed claims. Retail service providers must advertise realistic broadband performance. Consumers should have a real sense of the services they can expect after they sign the contract. After all, these principles are a part of the basic customer rights when it comes to broadband services.

Such practices are common for all industries, not just for broadband speed claims. The Commerce Commission works with all services supplied in New Zealand, so you can be sure that you'll never get into a situation similar to the one above.

Is Making False Broadband Speed Claims Illegal?

No, making broadband speed claims is not illegal for retail service providers.

However, there are cases (inside and outside of New Zealand) when Internet service providers had to pay exaggerated amounts of cash as a result of a lost lawsuit against people who claimed that their marketing campaigns were false.

For example, in 2022, three Australian telecom companies paid a collective A$33.5 million (NZ$37.08 million) fine for making false broadband speed claims.

The next time you feel like you are not receiving the internet speed you signed up for, you might want to take a look at that agreement and fight for your right.

 

Frequently Asked Questions

Who Sets the Rules for Retail Service Providers?

The rules for retail service and goods providers are set by the Commerce Commission. While this entity regulates a big part of the internet industry, it doesn't regulate the marketing process and the broadband speed claims big network providers make.

This part of the process is taken on by the TFC, or the New Zealand Telecommunications Forum. While the Broadband Marketing Code is voluntary, 100% of the internet providers in New Zealand comply with it.

What is a Normal Broadband Performance?

A normal broadband speed is around 12 Mbits/s for uploading and 110 Mbits/s for downloading content. By today's standards, this is an optimal speed to watch videos on YouTube, search for articles on Google, and so on.

However, for a more comfortable speed, you should double those digits. Usually, if you are working from home or uploading a lot of content on the Internet, you should look for higher speeds.

In New Zealand, the average fixed broadband speed was measured at 147.37 Mbit/s in May 2023 for the download. The average upload speed was 91.74 Mbit/s.

Can I Complain About Internet Speed?

Of course, you can!

If you don't have the necessary speed, or if the speed doesn't match the broadband speed claims that the provider made or stipulated in the contract (which is even better) you can talk to someone from the internet provider and decide the problem.

If they continue delivering poor-quality services, you can go further and file a complaint with the Telecommunications Dispute Resolution.

If you're still not happy with the outcome, you can take the matter further and contact the Disputes Tribunal or the Privacy Commissioner. For more information, you can visit this link.

Wrapping Up

The industry guidance for broadband speed claims is a very important document for both retailers and consumers. This removes the possibility of making false speed claims, bringing the overall quality of the services supplied higher.

This not only has an impact on the comfort of living in New Zealand, but it also increases the overall productivity of people working online.