Tag: Internet service offers

Full-fibre ISPs are calling for action to qualify next-generation broadband service in the UK

Article

Fibre optic cable trench in village lane - press picture courtesy of Gigaclear

Fibre to the premises courtesy of Gigaclear

“Full Fibre” ISPs Call on ASA to Stop Misleading UK “Fibre Broadband” Adverts | ISP Review

My Comments

While the NBN are taking things slowly to roll out next-generation broadband Internet in to Australian communities and providing most with a fibre-copper service, the UK are facing a similar problem.

Most of urban Britain are being provisioned with similar fibre-copper next-generation broadband service, typically “fibre-to-the-cabinet” with a copper VDSL2 link between the street cabinet and the customer’s door. This is while a handful of ISPs and infrastructure providers like Gigaclear, Cityfibre and Hyperoptic are running fibre-to-the-premises next-generation broadband infrastructure, whether to country properties or large urban developments.

But a lot of telcos and ISPs are using the word “fibre” as part of hawking their next-generation broadband Internet product, while it is seen as a keyword by the marketers to say that the service will provide higher bandwidth to the customer than what was normally expected. This is although they are running a fibre-copper Internet service in most of their territories.

What is being raised is how should a broadband service be qualified in relationship to its infrastructure when the service is advertised to the public. It isn’t just about whether a service implements fibre to the premises or not, but how much of the run between the exchange or head-end and the customer’s premises is being covered by a fibre link.

There has to be distinct keywords to say that a service is being provided “fibre-to-the-premises”, a “majority-fibre” service like fibre-to-the-building or fibre-to-the-distribution-point, or a “minority-fibre” service like fibre-to-the-cabinet. Other issues that need to be raised is whether a service is being delivered with symmetrical (upload / download) bandwidth or is an “exclusive bandwidth” service like active fibre where each customer gets the full contracted bandwidth rather than facing bandwidth contention.

What Gigaclear and co are raising is that customers need to know what they are able to get when they sign up for a next-generation broadband Internet service or other advanced telecommunications service.

Increased value for money affecting residential broadband in Germany

Article Flag of Germany

50 MBit/s und mehr: Verbraucher wollen immer schnelleres Internet | Computer Bild.de (German language | Deutsche Sprache)

My Comments`

Recently, German households are gaining better value for money when it comes to purchasing broadband Internet service. This is affecting the higher-speed 50Mbps service packages that are being preferred by the younger people.

AVM FRITZ!Box 3490 - Press photo courtesy AVM

German Internet customers preferring better value for money for their “50Mbps Talk and Surf” service

These plans are being underscored by their availability as part of multiple-play communications-service deals which include fixed or mobile voice telephony, broadband Internet along with other services. In Germany, the service package that is commonly preferred is the “double-play” service, marketed as a “Talk & Surf” service that encompasses a fixed-line telephone service and a broadband Internet service.

The article highlighted an increase in the preferred connection speed for the broadband services over 5 years with households showing strong interest in the 50Mbps services rather than the “economy” 16Mbps services. As well, the average cost of a fixed-line telephone + broadband service in that country had been dropping slightly from EUR€35.73 per month now to EUR€28.82 per month.

It is being underscored with the increased availability of better-value 50Mbps services in Germany’s larger cities but the 16Mbps “economy” packages are being found to have reduced value for money and this price drop is being described as being a slow one. As is often noted, this kind of value for money when it comes to Internet service doesn’t extend to rural areas which tend to find themselves at a disadvantage in this field.

Personally, I would attribute the increased ubiquity of VDSL-based Internet service in Germany’s urban areas being a factor leading to the improved value for money when it comes to the higher-speed packages.

But the questions to raise regarding the German broadband market is whether there is significant infrastructure-level competition in that country? Similarly, the availability of retail-level competition for residential and small-business telecommunications services has to exist at a sustainable level to assure customers best value for money.

At least something is happening for German households where they are gaining better value for money with their Internet services.

Certainty will arise regarding the cost of Internet service in Britain

Articles

AVM FRITZ!Box 3490 - Press photo courtesy AVM

You will be certain about the price quoted for that UK Internet offer that it does not contain hidden fees

ASA solves line rental crisis in broadband world | ThinkBroadband

We will end misleading broadband adverts, thunders ASA… | The Register

UK ad watchdog forces ISPs to simplify broadband pricing | Engadget

From the horse’s mouth

Advertising Standards Authority (UK)

Press Release

My Comments

A situation that has affected British Internet-service customers, especially those who purchase DSL-based Internet service has been the ability for telcos and ISPs to conceal the line rental associated with a voice telephone service. The line-rental issue won’t be an issue with customers who run a cable-modem service with Virgin Media or run an FTTP service with the likes of Hyperoptic, Gigaclear or B4RN. It also included issues like the minimum duration of a telecommunications-service contract and the upfront costs that a customer had to pay to get a service going.

Now the Advertising Standards Authority has laid down new guidelines that come in to effect regarding the advertising of Internet services in relationship to the prices, contract duration and other issues. These guidelines will take effect from 31 October 2016, also when BT Openreach are to offer a naked DSL service for the UK market.

The ASA along with Ofcom conducted customer research regarding the pricing of broadband and telecommunications services in the UK. From this research, they highlighted the confusion customers were facing with things like hidden line rentals, introductory offers and upfront costs, along with the contract duration.

Now the ads and tariff listings that ISPs and telcos publish have to provide better information for their current or potential customers. This includes:

  • the upfront and monthly costs for the service factoring, with the upfront costs to have greater prominence
  • the length of the contract for services based on minimum-length contracts
  • the prices that come in to effect after an introductory-offer period has lapsed

 

As far as minimum-length contract services are concerned, the industry and consumer-protection authorities need to work on a language that describes “month-by-month” services where a customer doesn’t face a long minimum contract period. This is more so with post-paid services where a customer can cease service at the end of the billing cycle which may benefit people who are in their location on a short-term basis like a long-term tourist or a person involved in project-based work. This is because of legal confusion about these services being marketed as “no-contract” services.

What is really meant to happen with the sale of fixed-line telephony in the UK is that customers can choose between different providers for this service and pay the line rental (typically between GBP£11-16) to the provider of their choice. This is thanks to the availability of the unbundled local loop setup available for their telephony services. It can be risky with smaller and boutique DSL operators who can’t bundle with particular line-rental provider but can be easier for larger ISPs who can bundle with a line-rental provider, typically their fixed-line telephony service.

The trends likely to come forth are quoted package prices increasing along with telcos and ISPs offering “first-few-months-free” offers or providing “gifts” or “rewards” like a tablet computer or a large number of points to a loyalty program rather than the “18 months free broadband” offers.

The Brits will also benefit from the arrival of a naked DSL service where you don’t have to pay line-rental for a voice telephony service. Such a service was offered by some ISPs in Australia and New Zealand; and over the Channel in France, Germany, Denmark and Portugal. These services will be described as an SOGEA naked VDSL service that is offered in FTTC service areas and will require a mobile telephone or VoIP telephony service to satisfy voice telephony service needs.

The questions that will always be raised is whether there is real infrastructure competition in the UK or whether BT Openreach needs to be fully separated from BT in order to provide increased value for money for competing retail ISPs and their customers.

At least this will mean that anyone who is considering Internet and telecommunications services or changing their Internet service in the UK can see how much the offer that is being advertised will hit them in the hip pocket.