thinkbroadband.com (formerly known as ADSLguide.org.uk) is the UK's largest independent broadband news and information site. We provide independent advice and details on the services offered by Broadband Service Providers so you can make an informed decision as to who to use as your supplier.
Can't get broadband above 2Mbps? Register on our notspot & slow-spot site
BT have announced their quarterly financial results today for the period April - June 2010. Unlikely Virgin Media yesterday who showed a revenue increase, BT's revenue was down 4% to £5,006 million (from £5,235 million June 2009) but their adjusted profit before tax was up to £446 million, a rise of 17% compared with the same financial quarter last year.
BT Retail saw revenue decrease by 7% largely due to the continued reduction in calls and lines revenue. Consumer ARPU (average revenue per user) increased to £314, up by £5 compared with the previous quarter, largely due to increasing take up of broadband within the customer base. Net additions of broadband customers were 96,000 which gives BT a market share of 40%. BT will no doubt be looking to grow this and their BT Vision TV service by next quarter following the launch of Sky Sports packages on the service, making it a more attractive product to bundle with the phone and other services.
BT Openreach revenue declined by 8% but 4% of that is due to a change in the internal trading model. Capital expenditure increase by 16% due to the investment in the fibre roll out that they are undertaking. July saw a major milestone in this of 1.5m premises passed by fibre-to-the-cabinet services and an average of 100,000 new premises added per week, granting access to faster 40meg broadband.
"We have made an acceptable start to the year, delivering improved financial results while investing in the future of the business. In TV we are offering great value premium sports packages and can now compete on a more even playing field. We hit the first major milestone in our fibre roll out, passing over 1.5m premises, and we are now running at an average rate of around 100,000 premises passed every week. In BT Global Services we continue to win significant contracts due to our ability to deliver a world class service to our customers."
Ian Livingston, (Chief Executive) BT Group PLC
TalkTalk, are expected to release their Q1 financial results tomorrow.
Virgin Media have released their second quarter results for 2010 today which show record revenue growth since the company was formed from the merger of Telewest and NTL. Revenue grew by 7.1% to £964m. The average revenue per user for the cable business is also up to a record £45.88, a 4.9% increase. The company are quoting 9,100 total new customers in what is normally the weakest quarter of growth, compared with a 27,800 customer loss last year. The total number of broadband customers now sits just above 4.2 million following an addition of 28,100 customers, with 74,000 of these customers on 50meg broadband. 259,000 customers took advantage of Virgin's HD products this quarter pushing the installed customer base to 1.2 million.
"A growing base of customers, combined with increased ARPU and improvements in Business and Mobile revenues, drove strong revenue growth and a double digit year-on-year percentage increase in OCF for the third successive quarter.
This performance was driven by our ability to offer households and businesses an increasingly differentiated range of digital services. Going forward, we'll continue to differentiate our propositions by proactively exploiting the advantages of our network and our mobile capability.
Confidence in our long term ability to deliver strong free cash flow, along with the recent completion of our refinancing, enables us to announce today an initial Capital Return programme that complements our existing debt reduction schedule, without compromising our ability to make further strategic investments in the business."
Neil Berkett, (CEO) Virgin Media
No further details have been released with regards to the 100meg broadband product as yet other than this is expected to be launched in the fourth quarter of 2010.
Broadband provider TalkTalk are following its users around the Internet in a bid to develop a new anti-malware system. Dubbed StalkStalk by The Register, the company is using a system to collect every URL or web address that its users visit and then follows them to the site to scan it for malware threats. The first part of this system is compulsory, so users cannot chose not to have the sites they visit scanned. The data collected will in future be used to build a list of sites that can be blocked at the network level to avoid customers being infected by malicious websites.
The system came to light after users on TalkTalk's forums saw that they appeared to be stalked by two TalkTalk/Opal IP's. As people browse the web, TalkTalk's system collects the URL's and these are recorded and checked against a list of blacklisted sites known to carry malware and also a list of whitelisted sites that have been scanned and approved in the last 24hours. If the site doesn't appear on either list, the user is followed to the site and the page is scanned for malware.
Users may be concerned that this sounds similar to Phorm which some ISPs such as BT tested previously, however this system does not monitor or record who looks at what sites.
"Our scanning engines receive no knowledge about which users visited what sites (e.g. telephone number, account number, IP address), nor do they store any data for us to cross reference this back to our customers."
"We are not interested in who has visited which site - we are simply scanning a list of sites which our customers, as a whole internet community, have visited."
TalkTalk Statement
Customers are expected to be able to access the system in the second half of this year which will also include parental control features. It will be opt-in and will be available at no extra cost.
Virgin Media have announced today that the Welsh village of Crumlin, Caerphilly will be the first in the UK to receive broadband delivered using electricity poles. Virgin have signed an agreement with Surf Telecoms, a utility telecoms infrastructure provider owned by Western Power Distribution to install broadband to the area. The trial starting next month will offer customers both 50meg broadband and Virgin Media's TV service, with the trial expected to run into 2011.
"We're already bringing broadband speeds of up to 50Mb and, soon 100Mb, to over half of all UK homes and are pushing the boundaries to ensure that homes right across the UK benefit from ultrafast broadband. Working in partnership with companies like Surf Telecoms, we can more rapidly and efficiently expand the reach of fibre optic networks to towns, villages and communities right across the UK."
Jon James, (executive director of broadband) Virgin Media
This trial is part of Virgin Media's plans to extend its network to cover more homes. 500,000 new-build properties are expected to be covered by the company and it believes that trials of this kind, and a similar overhead trial using telegraph poles in Woolhampton, Berkshire, can help it reach existing areas which lack next-generation broadband.
Ofcom has this morning published its latest research into broadband speeds which shows that over the last year, the average broadband speed has increased from 4.1 to 5.2Mbps, but worryingly also that the gap between actual speeds and promised speeds (the headline 'up to' speed) is widening.
The study conducted on behalf of Ofcom by Samknows shows that the proportion of UK fixed line residential broadband connections advertised as 'up to 10Mbps' has increased from 8% (April 2009) to 24% (May 2010), as more consumers upgrade their ADSL broadband packages from 'up to 8 meg' ADSL to ADSL2+ services which can run at up to 24Mbps. This increase in speeds is therefore not necessarily showing a significant improvement in infrastructure, but more probably consumers willing to upgrade due to lower prices or greater demands.
This increasing gap between the advertised speeds and actual throughput is caused primarily by the fact most people in the UK receive their broadband service through the phone line using ADSL technology, which suffers from interference and signal degradation which gets worse, the further away you live from the telephone exchange. Whilst faster up to 24Mbps services are available, very few will receive these top speeds and most will only see a fractional increase in their broadband speeds.
Those lucky enough to live in areas covered by Virgin Media's cable broadband however have another option—Its services are provided using different technology which does not suffer from the same signal problems related to distance. By using fibre-to-the-cabinet (FTTC) in 50% of the country, it is able to deliver an average speed of 8.7Mbps on its 10Mbps package and 15.7Mbps on its 20Mbps products, representing 87% and 79% of the headline speed respectively, whilst ADSL-based alternatives were delivering a fraction of this.
"Ofcom's broadband speeds report again proves Virgin Media is consistently more than twice as fast as any of our DSL competitors [..] It's clear that our DSL competitors just aren't keeping up with their promises of 20Mb broadband. No DSL customer receives 18Mb, only 2% are receiving more than 14Mb and, on average, DSL providers are delivering just 33% of their advertised 'up to 20Mb' speed. We need to ensure people are not being ripped off and the lack of transparency in broadband advertising risks damaging consumer confidence in superfast broadband. The Advertising Standards Authority has announced a review into the way broadband is advertised and the need for change is now urgent."
Jon James, executive director of broadband, Virgin Media
The comparisons used by Ofcom for ADSL/cable are not exact as the headline speeds used by each vary with ADSL focussing often on '8 meg' and '24 meg' due to technological standards, whilst cable services are advertised as '10 meg', '20 meg' and '50 meg', however whichever measurement is used, ADSL is significantly more variable in performance:
| Headline ("advertised") speed | Average actual speed | Average-to-headline |
|---|---|---|
| 'up to' 8/10 Mbps ADSL | 3.3Mbps | 33-41% |
| 'up to' 20/24 Mbps ADSL | 6.5Mbps | 27-33% |
| 'up to' 10 Mbps cable | 8.7Mbps | 87% |
| 'up to' 20 Mbps cable | 15.7Mbps | 79% |
"Virgin Media's 'up to' 10Mbit/s and 'up to' 20Mbit/s cable services delivered average download speeds around twice as fast as DSL packages with the same or similar headline speed.
The cable broadband service on average delivered higher download speeds at all times of the day than comparable DSL services, however it showed a greater slowdown during peak periods than some DSL providers."
Ofcom
It is worth noting that obviously ADSL coverage being near double the footprint of Virgin Media's cable network is a significant factor in these averages being low as it's the only widely used technology available to those outside cable areas. Of course, wireless, mobile and satellite services are also an option, albeit not as common.
| ISP Package | 24x7 (single thread) |
8-10pm weekdays (single thread) | 4-6am (multi-thread) |
|---|---|---|---|
| 'Up to' 8/10Mbps packages | |||
| AOL Broadband 'up to' 8Mbps* | 3.6 - 4.7 | 3.4 - 4.4 | 4.0 - 5.2 |
| BT 'up to' 8Mbps | 3.8 - 4.5 | 3.4 - 4.1 | 4.0 - 4.7 |
| O2/Be 'up to' 8Mbps | 4.3 - 5.0 | 4.2 - 5.0 | 4.6 - 5.4 |
| Orange 'up to'8Mbps* | 3.3 - 4.2 | 2.6 - 3.4 | 4.1 - 5.3 |
| PlusNet 'up to' 8Mbps | 3.3 - 4.2 | 3.0 - 3.9 | 3.4 - 4.4 |
| Sky 'up to' 10Mbps | 3.9 - 4.9 | 3.8 - 4.9 | 4.1 - 5.2 |
| TalkTalk 'up to' 8Mbps | 3.6 - 4.3 | 3.4 - 4.1 | 3.8 - 4.7 |
| Virgin Media 'up to' 10Mbps | 8.6 - 9.0 | 7.5 - 8.0 | 9.1 - 9.5 |
| 'Up to' 20/24 - 'up to' 50Mbps packages | |||
| BT 'up to' 20Mbps | 6.1 - 7.6 | 5.6 - 7.0 | 6.4 - 8.1 |
| O2/Be 'up to' 20/24Mbps | 8.1 - 9.7 | 7.9 - 9.4 | 8.9 - 10.8 |
| Sky 'up to' 20Mbps | 7.0 - 8.6 | 6.9 - 8.5 | 7.5 - 9.3 |
| TalkTalk 'up to' 24Mbps | 6.5 - 8.4 | 5.9 - 7.6 | 7.3 - 9.7 |
| Virgin Media 'up to' 20Mbps | 15.2 - 16.5 | 13.4 - 14.9 | 17.4 - 19 |
| Virgin Media 'up to' 50Mbps | 33.4 - 36.7 | 31.8 - 35.2 | 45.9 - 47.4 |
* Caution – Small sample size under 50 testers
The above chart shows the speed variations (min/max of averages provided by Ofcom) for single-threaded tests both within the 24-hour period as a whole as well as within the peak 8-10pm periods. It does not take into consideration multi-threaded tests between 4-6am during which Virgin XXL '50 meg' customers attained speeds of around 46Mbps.
The eight providers covered in the research represent the vast majority of broadband connections and tests were carried out at 1,500 locations in total. We do remain disappointed Ofcom continues to exclude smaller providers from its studies.
Research into broadband speeds is vital to ensure that consumers are making informed decisions. We are also very pleased that the Advertising Standards Authority have finally decided to review how broadband services are advertised, with particular focus on the use of the term 'unlimited'.
You can test your own broadband speed on our speed test on our website or if you have an Android phone, why not try our mobile speed test for Android which we are currently beta testing.
Ofcom is today launching the second iteration of its Broadband Speeds Code of Practice. The voluntary code is designed to improve the way in which consumer broadband services are sold and supported, in particular by requiring broadband service providers, to provide consumers with accurate information about the speeds they should expect to receive, to offer support in dealing with speed problems, and giving consumers an option to terminate a service where the promised speeds are not achieved. This policy is part of the self-regulatory approach which seeks to improve standards of services on a voluntary basis, and thus only applies to service providers who have signed up to the code.
What's new?
The code itself is based around eight principles such as training ISP staff, providing customers with accurate estimates, etc. and none of these have changed since the adoption of the original code in June 2008. The main changes in the latest draft revolve around how broadband providers give speed estimates to prospective customers and what needs to be included on their website. As previously, the Ofcom expects providers should "honour not only the letter but the full spirit of the code".
When an estimate is to be provided – Earlier this year, Ofcom carried out research in the form of a 'mystery shopping' exercise, which found that customers were not being given the estimated line speed early enough in the sales process. As part of the new code, broadband providers will need to ensure they give the 'access line speed' before asking the user for a MAC (migration authorization code) or any financial details, and ideally as soon as possible.
How the estimated line speed is calculated – The way the estimated access line speed is given will also change under the new code—Previously, service providers were expected to give a speed estimate, rounded to the nearest megabit-per-second (Mbps) or 0.5 Mbps if the estimate was under 4Mbps. This will now change such that consumers will be given a range based on the 20th and 80th percentile of 'similar' customers (i.e. the speed range achieved by customers, ignoring the top 20% and bottom 20% of speeds). ISPs can provide a single estimate rather than a range, if they can ensure that 60% of 'similar' customers will achieve this speed +/- 1Mbps.
Providers will need to ensure customers understand that the indicative speed is just an estimate, and that they should contact the provider if they find their actual speeds are significantly slower than the initial estimate.
Managing speed problems – A 'minimum guaranteed access line speed' should be defined as at least the 10th percentile of 'similar customers'. If speed falls below this, then the ISP must take steps to resolve the problem. If they cannot do so, then customers should be given the opportunity to leave the contract immediately and without penalty, if it's within the first three months of the service. This is a change from the previous policy which allowed customers to migrate onto a slower speed product if one was available.
ISP Websites – The new code requires ISPs to prominently display on their website, information on how to check access line speeds and actual throughput speeds that are being achieved, as well as how to improve speeds.
Fair Usage Policies & Traffic Shaping – Providers operating fair usage policies or traffic shaping systems will be expected to give details on how these may kick in, and what the effect on usage would be, such as any restrictions on speeds. Specifically, providers are expected to provide an indication of what level of usage would be likely to result in action being taken under a fair usage policy.
Criticism
The new code is seeking to clarify the way the eight principles are interpreted in an effort to ensure consumers are provided with more accurate and useful information that helps them make better choices. It is quite understandable why Ofcom is trying to tighten up the code, however the changes make it even more complicated, creating yet another layer of bureaucracy, particularly for smaller service providers. We would have expected Ofcom to simplify the code itself, and provide additional explanatory notes which could assist providers in interpreting the code in a way which would be relevant and effective to the size of their business.
The code does acknowledge that the requirements of providing speed estimates are, for many service providers, tied to the information available from wholesale operators, and that Ofcom would need to work with the entire community to ensure that suitable estimated were provided all the way down the chain. However, in other ways, the code does not provide protection for service providers where the wholesale providers operate longer minimum contract terms, or indeed 'cease' charges which service providers are obliged to pay if a broadband connection is terminated (as opposed to migrated to another provider).
"The code imposes new requirements on the ISP, but not wholesalers, as it only applies to home users and not B2B contracts. At least one of our DSL wholesalers require at least three month minimum terms. Ofcom would require us to offer earlier termination whilst our contract would continue."
Thomas Mangin, director, Exa Networks
"The use of percentiles means that the code is only sensible where 10% of lines are faulty and customers are not complaining. This is an active discouragement for any ISPs (such as us) doing and pro-active monitoring and contacting customers with problem lines. To follow the Ofcom code we need people with slow speeds to stay like that so that the 10th percentile stays sensibly low. This alone is reason not to sign up to the new code."
Adrian Kennard, director, AAISP
AAISP is also critical that the code remains focussed on speed alone, which is only one part of the user's broadband experience. Whilst the company has chosen not to sign up to the new code, it has developed its own broadband speeds code to which it says it will adhere to, whilst Exa Networks continues to honour the previous version of the Ofcom code and will be publishing an updated version of its customer commitment on its website in due course.
The code retains ambiguous and conflicting definitions such as "access line speed" which it defines as the maximum speed of "the data connection between the broadband modem and the local exchange or cable head end" which would be the 'sync speed' in DSL for example, whereas they conclude that this speed "constitutes the maximum speed a consumer will be able to experience on his/her individual line" which in turn may be slower due to the IP profile set on the BRAS by automated line management systems.
Our verdict
The broadband industry has been advertising headline 'up to' speeds for many years now, and we support Ofcom's attempts to ensure consumers get the best information about the speeds they should expect on a particular service, but we feel that Ofcom have missed an opportunity to re-draft the code in 'plain english', making it more accessible to consumers, and to separately issue practical guidance in a format which the entire industry was able to easily adopt.
Broadband providers signing up to the new code will be required to implement the changes as soon as possible, but in any case within six months, ensuring that by February 2011, all those signed up today would be subject to the new rules.
A brief outline of the original broadband speeds code is available.
BT Openreach have today announced a new initiative to fight back against cable thieves. The company will deploy SmartWater, a liquid used to forensically tag metal thieves and they hope will protect the UK's telecoms network. Metal thieves cost BT millions of pounds each year and can disrupt telephone and broadband service for days whilst the cable is replaced.
BT will use SmartWater to forensically mark the outer shell and inner core of cables so that they can be identified back to a specific area. Tools and other equipment will also be marked so that police can identify where stolen items have come from. Hot-spots will be deployed with SmartWater trap devices which will spray thieves who target Openreach property.
"From now on, any criminal who targets the BT network risks being invisibly 'tagged' with SmartWater, meaning that the police can trace them, and any stolen cable or equipment, back to the scene of the crime. Cable theft affects not only us as a business, but the millions of people who rely on access to phones and broadband across the UK, and with the help of this technology we're fighting back."
Bernie Auguste, (Head of Security) Openreach
BT will also be increasing patrols of network sites, adding new locks for manholes and working closely with police forces on 'sting' operations to target metal thieves. Openreach say that this technology being used in North London has already achieved results by reducing the number of network attacks.
"Cable and metal theft is high on BTP's agenda due to the disruption and economic effect it has on businesses and communities. Anyone arrested for metal theft will be examined for traces of SmartWater. A search will be made of the person's house and any property, including vehicles with traces of SmartWater on them, is likely to be seized by police. Scrap metal dealers will also be visited regularly to ensure they are assisting British Transport Police in identifying criminals attempting to sell stolen metal."
Detective Inspector Robin Conway, British Transport Police
Project Canvas have appointed Kip Meek as the chairman of the board to lead the venture forward. He will also oversee the appointment of a new CEO. Meek was previously rumoured to be taking the role and his appointment therefore doesn't come as a surprise. He will step down from his current positions including non-executive positions at the Broadband Stakeholder Group and with Phorm. Meek is familiar to the industry, previously being an Ofcom official and linked with helping to negotiate mobile spectrum negotiations.
"Internet technology creates unlimited choice and can also give people real control over what they watch, and when they watch it.
Project Canvas will integrate the broadcast and on-demand worlds to make this possible via the TV. It will also allow third-party business models to thrive through an open platform, bringing the benefits of next-generation TV to anyone who wants it.
With the backing of these six substantial partners, we have the opportunity to transform television. I look forward to working with the board and the executive team to make this happen."
Kip Meek, (Chairman) Project Canvas
The Register who previously had concerns over Meek joining Canvas whilst still holding a position at Phorm has pointed out some other lackings at Canvas. When the BBC Trust announced approval of Canvas last month, they stated that within 20 working days they expected the core Canvas specs to be published, but this hasn't yet been done due to it not being complete. Some manufacturers are however believed to be building Canvas boxes already so this isn't hampering development of the platform.
Nearly 3 million consumers failed to resolve complaints with their broadband or phone provider after 12 weeks in 2009, and 77% were unaware that a free resolution service was available for them to use according to a complaints procedure review by Ofcom. Two alternative dispute resolution (ADR) companies exist, CISAS and Otelo, and all broadband and telecoms companies must subscribe to one of these.
In September 2009 Ofcom reduced the time from 12 weeks to 8 weeks before complaints could be taken to one of the alternate dispute resolution companies (ADR's). Ofcom is not satisfied that that the standards of complaints handling in the communications industry is sufficient and is establishing a minimum standard for complaints handling procedures which will apply to all providers from January 2011. This will introduce a regulatory requirement for providers to resolve complaints in a "fair and timely manner" with minimum expectations of all providers' defined.
Also from July 2011 communications providers will have to provide details about the relevant complaints procedure and ADR details on all paper bills. They will also be required to write to consumers to advise of their right to go to ADR after 8 weeks of an unresolved complaint. This may not help in all cases as many consumers have trouble getting their provider to recognise they are trying to make a complaint.
"We want to make sure that when something goes wrong, consumers are able to find out easily how to make a complaint and can be assured that their provider will be able to handle their complaint effectively."
Ed Richards, (Chief Executive) Ofcom
Statistics show that dispute resolution does work so hopefully these new rules to make them more accessible will help. Complaints about mobile providers that weren't resolved after 12 weeks and were then taken to ADR were resolved in 91% of cases compared with only 51% where the complaint was not taken to ADR. The full Ofcom review of complaints procedures is available here.
Following speculation on Monday about the possible sell-off of Easynet by BSkyB, the parties have today reached an agreement to sell Easynet Global Services and its subsidiaries to Lloyds Development Capital (LDC), a UK private equity firm for £100m, subject to regulatory approval and consultation with employees.
"This is an excellent opportunity for Easynet, its customers, and its staff. It provides us with additional capital to help fund the company's next phase of development and allows us to retain a business relationship with Sky. Since being part of the Sky family we've grown in stature in the UK and globally too. Our revenue has increased year on year, and we've continued to dominate the fast-growing segments of managed hosting, managed telepresence, Internet Protocol (IP) solutions and connectivity, whilst maintaining growth and innovation in our network services and products. We look forward to continuing this success under new ownership and building on our enviable reputation for excellent customer service and a global portfolio."
David Rowe, Chief Executive Officer, Easynet
As part of the deal, Sky will retain control over the network acquired from Easynet Group in 2005, Easynet Global Services will continue to have access to Sky's extensive network and BSkyB will continue to be a customer of Easynet. The move will result in Sky focussing its efforts within its natural consumer space whilst Easynet will be able to target business customers.
Digg this
Add to del.icio.us
