ACCC contemplates monitoring of actual broadband speeds

In a media release dated 14 August 2013 the Australian Competition and Consumer Commission (the ACCC) has released a consultation paper which invites comment on a proposal for a program to monitor and report on the actual performance broadband services in Australia.

In its media release the ACCC indicates that the program would test data transfer rates (or "speeds") and other indicators of broadband service quality experienced by a "representative sample of consumers in real world conditions" with the results of such testing being periodically made available to consumers and service providers. The proposal copies similar programs implemented in several other countries including the United Kingdom, United States, Singapore and New Zealand.

The reason such a program is seen to be needed is, as the Computer World website reports, that the ACCC is of the view that there is a history of “misleading” marketing by ISPs of what broadband speeds consumers should expect.

Commenting on the proposal ACCC Commissioner Cristina Cifuentes is quoted as saying:

“A program of this type could benefit internet service providers and consumers of broadband services in Australia. Information on real-world performance would help consumers and small businesses choose the right service for their needs and budget, and help them to identify whether they are receiving the service quality they were promised,”

The program is also reported as being a way to provide transparent and accurate information on the quality of broadband services, the Commissioner saying:

“Additional transparency on the quality of broadband services would also promote competition and encourage internet service providers to invest where necessary to deliver higher quality services to consumers.”

In its media release the ACCC has also indicated that through consultation it is seeking views from consumers, internet service providers and IT companies about how such a  program could be implemented in "a manner that delivers strong benefits to consumers and internet service providers, while remaining cost effective". The consultation paper indicates that many of the details in the program have yet to be worked out including what types of broadband services, which areas and which ISPs should be included in the program. The paper also seeks comment on which broadband metrics should be measured and how often reports should be released.

At this point ACCC has indicated that proceeding to implement the program will "depend upon practical considerations including securing financial support for the program". Comments are due to the ACCC by 13 September 2013.

Sources:

• ACCC invites comment on a broadband monitoring and reporting program (ACCC Media Release 14/08/2013)

• Broadband performance monitoring and reporting program (ACCC Consultation Paper)

• ACCC may monitor actual broadband speeds (Computter World)

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