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The voluntary Code will apply to all businesses (regardless of size) and standard business broadband services across all technologies.

Ofcom has yesterday announced new protections which will enable UK businesses to receive more accurate and reliable information on the broadband speeds they should receive before they sign up to a contract. The code will come into effect from 30 September 2016.

Ofcom research has found that some businesses - particularly small or medium sized enterprises (SMEs) - were confused about the actual speed of their broadband service. The voluntary Code (Ofcom's Business Broadband Code of Practice 2016) is aimed to target the perceived 'speeds gap' – where business customers purchasing standard business broadband services can find that there is a difference between the 'actual' speed of their broadband service compared to the 'headline' maximum speed used in advertising. 

The new code will provide a similar level of protection for businesses as residential broadband users, whose interests are already safeguarded under an existing Code (Residential Broadband Speeds 2015).

This voluntary code applies to all businesses, regardless of size, and to all standard business broadband services across all technologies (ADSL, Cable, Fibre to the Cabinet, Fibre to the Premises, Wireless and Satellite).

As of yesterday, seven of the UK's specialist broadband providers for businesses - BT Business, Daisy Communications, KCOM, TalkTalk Business, Virgin Media, XLN and Zen - have signed up to the Code. They together provide a service to around two thirds of SMEs who have standard broadband.

The seven internet service providers who have signed up promise to:

• provide businesses with an accurate estimate of their expected speeds when signing up. This covers both download and upload speeds, which are particularly important to businesses as they can send large amounts of data;
• manage their business customers' speed-related problems effectively, and offer them the right to exit their contract without penalty if speeds fall below the minimum guaranteed level;
• give additional relevant speeds information at the point of sale (for example, how the provider manages internet traffic on its network, and how this might affect a customer's speed); and
• provide further detailed speeds information in writing to the customer after the sale.

This announcement comes one day after the launch of a cross-party parliamentary British Infrastructure Group report - techUK’s comment is available here.