IndustryIssue 03 - 2024MAGAZINE
UK broadband outages

UK broadband outages reach crisis levels

Campaign group Which? found in July 2023 that over half of the 4,000 people it surveyed faced at least one broadband connection problem in 2022

The United Kingdom government, in March 2024, announced that over one million homes, businesses and public buildings would be able to access the “best internet speeds on the market” as a result of the reported rollout of faster, more reliable broadband.

The government also outlined details of the UK Research and Innovation’s (UKRI) £70 million “Future Telecoms Programme,” funded through the UKRI Technology Missions Fund and supporting one of five critical technologies, which would see 16 UK projects sharing £22 million to support development and commercialisation of cutting-edge tech solutions and lay the groundwork for the “networks of the future.”

If the above news shows that the broadband connectivity expansion in the European country is accelerating at a steady pace, there is another side of the same coin. As per The Register, by September 2023, an estimated 22 million Brits endured broadband outages of three hours or more, and are paying a higher monthly subscription for the pleasure.

The statistics were compiled by the price comparison website Uswitch. They surveyed 2,000 subscribers about their broadband issues and found that 41% experienced connectivity failures lasting more than 180 minutes.

The stats equated to a “staggering 21 million UK consumers” and are a major increase on the 12 million who reported similar woes in the 2022 annual broadband outage survey.

Understanding the problem

Uswitch reckons almost one in five reported that outages occurred during work hours, with 15% of respondents facing a total connectivity stoppage. A third that lost connectivity were doing so at least once a month, and a quarter moaned it continued for three hours or more a week, or 6.5 days of downtime over 12 months.
Only 22% were informed about receiving compensation, perhaps because almost half didn’t even realise they were entitled to it, as per The Register. This is against a backdrop of rising broadband prices, which went up on average by 15% in April.

Campaign group Which? found in July 2023 that over half of the 4,000 people it surveyed faced at least one broadband connection problem in 2022. Kester Mann of analyst CCS Insight warned in 2023 that more inflation-linked pain could be coming, saying that telecoms “price rises each April are now commonplace in the UK,” with most operators “using an inflation-linked calculation and adding up to 3.9 percentage points. The method received relatively little attention when inflation was low, but now that it’s above 10%, the highest level in 40 years, the impact is far greater.”

Customer awareness crucial

Broadband customers suffering service failures may be missing out on money they are owed because they are unaware of their rights to automatic compensation. Under the telecoms regulator’s “automatic compensation” scheme, customers should receive set daily payments of up to £9.76 if an internet outage is not rectified after two days, or if an installation date is missed.

However, campaigners and activists say that, as complaints rise, unclear rules are allowing companies to get out of paying up, and that customers lack the information they need to challenge them.

The Guardian reported about an individual named Cameron Park, who was left out of pocket by more than £600 after British telecom giant BT went back on its initial pledge to compensate the person for a five-month delay to his new broadband service.

The installation was scheduled for July, but nothing happened. At the November end, the person was told that he would have to pay an unspecified excess construction charge of up to £3,000 before the work could proceed. When he refused, BT cancelled his contract. Its sister company, Openreach, which manages the broadband network, admitted the charge had been raised in error after the Observer intervened. Park was finally connected in January 2024, and BT agreed he would be compensated for 141 days of delay.

“Under the automatic compensation scheme, he was entitled to £5.83 a day (the compensation level at the time), amounting to £822. But BT then claimed it had pledged the sum in error, and insisted he accept £215. It stated that it was not liable for 75% of the delay, because it was caused by an unspecified third party,” The Guardian reported further.

What’s with the third parties?

Ofcom’s code of practice says that providers are liable for compensation whether or not connectivity installation delays are caused by third parties. However, there are exemptions, if a law or regulation will have to be breached to avoid a delay. Providers are expected to explain to customers why a payment is not due, which BT did not do.

“At no point, through the whole process, was a third-party delay mentioned, and nor is this reason for exemption mentioned on BT’s own website. I was, instead, repeatedly informed, in writing, that I would be paid the full amount,” Park said.

The Observer, another British newspaper, asked for details from BT on Park’s case. The telecom giant was mentioned by the media outlet in these words, “Park’s long wait was due to health and safety requirements involving a power company, and this was not mentioned due to safeguarding. It then claimed the culprit was a landowner who had to grant permission for cables to be laid.”

“Park took his complaint to the Communications Ombudsman, whereupon BT stated that he was to blame for 107 days of the delay because he had not accepted the erroneous excess construction charge. Compensation is not due if it was the customer who caused the delay. The ombudsman therefore ruled in BT’s favour,” it continued.

BT’s claims were eventually questioned by the Observer. Park was awarded only an extra £64. The telecom venture said the rules relating to exemptions were correctly applied, but, “Having reviewed this case further, and the information available to us, we acknowledge there is an additional period of automatic compensation to be paid and we’ve apologised for this oversight.”

BT has since agreed to pay another £100 as a “goodwill gesture.” Consumer advice group Broadband Savvy says customers are being let down by opaque rules and a “toothless” ombudsman.

“We’ve seen a 33% increase in requests for help this year, compared to 2023. There have been numerous instances where the ombudsman has found in the ISP’s favour, despite it leaving the consumer offline for months for no good reason. And when it does uphold a customer complaint, it has no real power to force the provider to act,” said the group’s founder Tom Paton.

The ombudsman, on its part, insists that it reviews every complaint fairly and impartially.

“Our role is either to put the consumer back in the position they were in before the issue occurred, or if suppliers have not caused consumer detriment, then no action will be taken,” it stated further.

According to consumer rights expert Martyn James, “It is the voluntary code of practice that is toothless, and should be replaced by legally-binding regulations. If the rules are open to interpretation, businesses can get out of paying. Most customers will give up when turned down with a poor excuse, or offered a rubbish settlement, as they’ll take the ISP’s word for it.”

Ofcom’s defence

Ofcom told the Observer that it was the ombudsman’s role to judge whether an exemption had been applied unfairly. It said the scheme had increased the amount of compensation given to customers fourfold, with £60 million paid in 2022, and that a voluntary code of practice was the “quickest and most proportionate” way to get companies to sign up.

However, it admitted “unforeseen issues” could arise, and said customers were encouraged to get in touch with problems to help it monitor compliance.
“We are aware there are complications with a small number of cases of automatic compensation, and this is something we are looking into. Providers signed up for the automatic compensation scheme are required to pay out to customers when there is a delay to the start of a new service. And this includes if the delay is caused by an event beyond a customer’s, or the provider’s, control, such as anything related to a third party,” it concluded.

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