Thursday, September 2, 2010
One topic that periodically hits the news headlines, and thereby the blogosphere, is the issue of truthful advertising of broadband speeds. The question, really, is whether the statement "up to" a certain speed can actually be substantiated, trusted, and regulated by the FCC and FTC. Virgin Media took the lead on this issue recently by voluntarily opting to change their messaging strategy in an attempt to remain above reproach (and probably spur their competitors to do the same). But is a wide-scale change, specifically a regulated and mandated change, in messaging really called for?

First, let's start with defining the grievance. What's the beef? The problem, as most consumers have identified, lies in the fact that advertised speeds for broadband services most commonly boast the highest allowable speed using "up to" phrasing. However, such messaging falls under criticism when the broadband customers cannot achieve said rate. Now, of course, nobody ever promised consistent and guaranteed speed, but the supposition is that if the advert says "up to" that I would periodically and not-so-rarely get up to that speed. In many cases, however, the customers do not.

And so it is concluded, the broadband provider must have been dubiously planning this deceit. Now, that is possible, and certainly does take place. But, as one in the industry, I'd like to offer a pause for some objective criticism of the critics, shall we?

First, consider all of the factors that contribute to the connection speed of a network terminal--how many of those are within the Broadband Provider's control? When connection speeds were low at my office, the problem was eventually traced to an issue from the punch panel to my desk. Second, don't be so quick to presume the promise of speed was so dubiously presented. Many broadband providers are starting to offer simple speed calculators on their sites to allow customers to test their connection speeds.

Ultimately, however, as a one not only in the industry, but specifically involved in marketing, I'd like to explore this topic of "published rates." It is often not the contract rates that are in question, it's the advertised rates. Virgin Media has decided to publish their average speed in lieu of their optimal speed. But, do we expect that to be the norm in advertising? Mortgage rates are often advertised "as low as" what a good borrower could qualify for. C-Stores advertise the price of regular unleaded, not premium, on their signs. Airlines publish the anticipated arrival times, not considering the potential for disaster, technical failure, weather, etc. Are these deceitful--intentionally trying to mislead the buyer? I don't believe so.

Most importantly, "up to" rates are no more misleading than an "average" published speed. Average means that still 50% of subscribers will fail to reach even that par. Among those who do fall within the average, they will certainly not do so consistently -- they will enjoy spikes of speed during low-traffic times and dip well below average during peak usage hours. It remains a select few customers who could count on a consistently average speed.

Should the lying stop? Absolutely. Is it as easy to regulate as you might think? Not really. Are the broadband providers as universally unscrupulous as accused? Hardly. In fact, as is common with categorical prosecution, many are blamed for the sins of few.

Labels: Broadband Speed, C-store, Published Rates, Virgin Media

posted by Unknown at 11:08 AM Link to this Article

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