Is My Internet Provider Lying?

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Internet providers are experts at marketing themselves. They know how to use various online channels and tools to create a positive image of their service and attract and retain customers. They also know exactly what to say and use to persuade you: bold claims, enticing deals, and disinformation.

You're not immune to their exploitation of the gaps in consumer knowledge, so don't worry if you've ever felt frustrated or cheated by your internet provider—you're not the only one to experience an inconsistent or unreliable internet connection, hidden fees, and poor customer service.

So to help you out, we'll expose some common lies internet service providers tell their customers and show you how to deal with them.

Is My Internet Provider Lying to Me?

It depends. Most internet issues you face may be beyond your ISP's control: network congestion, data attenuation, etc. However, your ISP could be lying to you if you consistently experience slow internet speeds, outages, terrible customer service, and high internet bills. In that case, reviewing your contract and checking alternatives is best.

Understanding Internet Service Provider Claims

False advertising is a common practice in today's world, and most ISPs will resort to making false claims for several reasons.

Why Do ISPs Make False Claims?

We're not trying to excuse or justify some providers' unethical behaviour. But you should understand why ISPs lie to know what to do if you think yours is duping you.

ISPs exploit common gaps in consumer knowledge to:

• Attract and retain customers
• Justify higher fees
• Gain an advantage over competitors in the market

Gaps in consumer knowledge include advertised versus actual internet speed, data caps, differences between plans, meanings of technical terms, and the availability of alternative providers.

ISPs aren't as strictly controlled or monitored as other sectors, such as banking. They face weak, inconsistent enforcement and penalties for their misconduct.

Those who are dominant in their market also have more power over their competitors and are likely to use false claims to deter them. But, sometimes, the only solution to attracting and retaining customers when facing intense competition is resorting to false claims to gain an advantage.

What Are Some Common False ISP Claims?

The following are the most common claims internet providers make to attract users. Let's debunk them.

Unlimited Data

Many ISPs claim to provide unlimited data plans. This usually isn't the case.

The catch is that you'll experience a slower internet speed or increased fees after you pass a certain threshold. Fair usage policies and bandwidth management are present.

The data usage threshold depends on your ISP, but it usually starts at 50GB.

Fast Speeds

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Fast internet speed claims are the selling point of most ISPs. However, few users know that there's a huge difference between advertised and actual speeds. So, don't be surprised if the actual internet speed you experience is nothing like the promised rate. This happens due to network congestion and infrastructure limitations.

Internet speed tests are a way to measure how much bandwidth you're getting compared to what you were promised. Be sure to use a reliable speed tester.

While it's difficult to give you an exact percentage (due to the many types of broadband technologies), receiving less than 70% of the advertised internet speeds in New Zealand is a cause for concern. Contact your ISP if that's the case.

100% Uptime

No provider can guarantee a 100% uninterrupted service. Repairs, maintenance, or technical issues can occur and cause outages and downtime. These outages can slow your internet speed or disconnect you entirely. There's little you can do about them.

Signing up with a reliable broadband provider is a way to reduce the risk of experiencing such downtimes. You can also check for outages or conduct a speed test on our website to troubleshoot slow speeds.

No Throttling

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Throttling is the slowing down of internet speeds for certain activities or content types. Most ISPs rely on throttling to manage bandwidth and network congestion (especially during peak hours), comply with legal obligations, or protect you from illegal or harmful content.

While not all ISPs engage in throttling, the reasons behind it are often noble; rarely do you find an ISP throttling your internet speed maliciously. So, we recommend signing up with a transparent ISP that can disclose their throttling practices and inform you when it's imminent.

No Hidden Fees

Some ISPs may advertise transparent pricing without hidden fees, but you may experience higher-than-expected monthly bills or inexplicable charges.

These fees include data overages, installation, early termination, and equipment rental. It's a good idea to review your ISP's contract for such fees or sign up with a transparent one that'll show you precisely what you're paying for.

Best Coverage

Some ISPs also claim to have the best coverage among their competitors. This isn't true; coverage quality and service availability can vary greatly depending on the location. The further away you are from your ISP's infrastructure, the worse your internet will perform.

Here's a tip: signing up with a rural provider is best if you're in a remote location. They have the proper infrastructure to ensure you have a satisfying internet experience.

Unparalleled Customer Service

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Most ISPs tout exceptional customer service. Again, this isn't always the case.

In reality, you'll face long wait times, unresponsive support, many conversations with automated systems, and difficulties resolving technical issues. Why? ISPs are constrained by their size and resources and often have millions of customers to deal with.

This can be worse for users who signed up for a short-term contract. ISPs allocate resources to long-term users, so temporary customers are less likely to receive premium support.

No Contract Required

Some no-contract plans ISPs advertise may come with hidden terms or minimum subscriptions. They can hinder you from switching to a different plan or provider without penalties. Read your ISP's terms carefully.

The Reality Check: Common Issues and Complaints

Let's investigate who's to blame for the issues that arise later now that we've looked at a few claims ISPs make.

Slow Internet Speeds: Is It Me or My ISP?

Many factors affect advertised and actual internet speeds, and some ISPs may not be honest about them and may use this gap in consumer knowledge to their advantage.

Throttling

One of these factors is throttling.

Some ISPs intentionally limit the internet speed for specific activities and content types, such as streaming and gaming, to manage bandwidth and network congestion, especially during peak hours. Some ISPs also do this to favour their services and urge you to pay extra to access certain websites, applications, or unthrottled speeds.

Your speed is likely being throttled if you consistently experience slow speeds when indulging in specific activities. Usually, you can contact your ISP to inquire about their practices concerning throttling so you can minimise it. Some also offer unthrottled plans, but you'll have to pay extra.

Connection Type

Your connection type is another factor. In New Zealand, fibre broadband is the fastest and most reliable connection. It also covers most residential areas. However, not all connections are the same, so don't be surprised if you're experiencing slower speeds while using ADSL or satellite broadband, for example.

Actual Speed Limits

The final and most notable factor is the speed you're getting versus what you were promised. Your ISP isn't lying to you regarding advertised speeds, but they may not be entirely honest.

They should provide accurate information about their speeds (typical peak speeds, minimum guaranteed speeds, and factors that may affect them). However, you should also be aware that you're not getting the speed you're paying for because of many factors, notably network congestion and infrastructure limits.

During peak hours, when most users are online, your internet connection will slow down because ISPs work with limited bandwidth and must manage it well. Regarding infrastructure, the further you are from your ISP's exchange, the longer it'll take to transmit and receive data and the worse their coverage becomes.

The speed you're paying for—and your ISP advertises—is the maximum speed possible under ideal conditions. Ideal conditions are met when there are:

• No interference
• No network congestion
• No throttling
• Up-to-date, well-maintained equipment, hardware, and software
• Minimum distance from the exchange

These factors are rarely met, so expect to receive a lower speed than what you're paying for.

However, not all ISPs are the same, and some may provide accurate and reliable information about their speeds and practices, while others will make misleading or false claims and use technical claims to trick you. Be sure to test your internet speed frequently.

Inconsistent Performance and Frequent Outages: Is My ISP to Blame?

Probably. When it comes to frequent outages and dropped connections, check your hardware and equipment first. Ensure there are no weak connections, update and reconfigure your Wi-Fi, and check for malware.

Then, ensure that nearby construction work or severe weather isn't to blame. Accidents, natural disasters, animals, and harsh weather can damage the underground cables and the network infrastructure, leading to outages and drops in connection speeds.

If there's no apparent issue on your side, then your ISP is to blame. Some providers have outdated equipment and infrastructure that lead to unreliable internet connections, or they may misconfigure how data is routed to you. If that's not it, they could be struggling with an overloaded network, throttling your speed, or dealing with technical issues.

Whichever is the case, your ISP shouldn't promote a reliable internet connection if they regularly face these issues; that's blatant false advertising. You should contact them or check their status page.

Privacy Concerns: How Secure I Am?

Source: DepositPhotos

Privacy issues are a concern. ISPs in New Zealand are regulated and must comply with the Privacy Act 2020, which sets out 13 information privacy principles that govern how agencies handle personal information: obtaining consent, lawful use, limiting retention and disclosure, and the like.

ISPs may collect, use, and disclose your personal information to:

• Further their research and development
• Develop better marketing and advertising strategies
• Find what works best for their clients
• Improve their security measures

However, they're also tasked with doing so following privacy principles. In other words, they must inform you of the purposes and recipients of your personal information, obtain your consent, respect your preferences, and protect your information from security threats.

Your ISP mostly knows what you're doing online unless you use a VPN (Virtual Private Network) or a secure HTTPS connection. Fortunately, they must use that information lawfully and take extensive security measures to protect it from hackers and malicious insiders.

Still, your ISP is neither immune to security threats nor exempt from common company goals; it's lying if it advertises a 100% secure and private service.

So, take measures to protect your information: use a VPN and avoid shady websites and public networks.

Poor Customer Service: Do ISPs Live Up to Their Promises?

There's no denying that good customer service is a critical aspect of choosing an ISP.

Eventually, you'll face billing errors, service interruptions, slow speeds, and other issues you must contact your ISP to resolve. They have to be fast and responsive to ensure you have an excellent experience with them.

ISPs have varying qualities and customer service performance in New Zealand primarily due to their resources and size. So, expect some providers to have more positive feedback than others. But your ISP is lying if it touts unparalleled customer service that is, in reality, unsatisfactory.

Compare broadband providers and check online forums like Reddit to see what people say about different ISPs.

What Should I Do If My ISP Is Lying?

If you're adamant you're not receiving the services you were promised, the only viable solution is switching to another ISP. Review your current contract and seek alternatives.

When choosing an ISP, consider its reputation and coverage. Signing up with a provider that can provide a fast, reliable internet connection is best.

Most Kiwis have access to fibre, so consider upgrading to it; it'll resolve most of your issues concerning connectivity and slow speeds. However, you should also prioritise customer service. Your next ISP must be ready to resolve your problems and guide you through any technical difficulties.

But if your ISP did cause you a severe problem, you can contact the Privacy Commissioner (privacy issues), Commerce Commission (consumer protection issues), or the local authorities for criminal matters.

Wrapping Up

While internet service providers are regulated in New Zealand, it doesn't mean that they all follow the guidelines to the point or that those rules are thoroughly enforced by the regulating parties. There are several false claims ISPs can make to attract and retain customers, from unlimited data plans to no contracts with a catch.

Your ISP can cause you many problems and frustrations by lying. If you believe yours is tricking you, signing up with a better alternative or contacting the authorities are a solution.

At Glimp, it's our responsibility to ensure you have the necessary knowledge to make informed decisions on everything internet while saving money, so check out our other posts to learn more!