Business

Commerce Commission wants to make it easier for broadband customers to shop around

2024-10-15T10:38:13+13:00

Photo: RNZ/123RF

The Commerce Commission wants telcos to improve the way they market broadband by speed and price, along with other information to help consumers shop around for the best fit.

The guidelines were being updated following a review of the original guidance issued in 2021 to address concerns about marketing conduct, and reduce consumer confusion, particularly during the transition away from copper.

Telecommunications commissioner Tristan Gilbertson said the initial review saw a 36 percent drop in complaints from consumer coming off copper.

However, he said there was a need for further improvement with some providers showing fibre broadband speeds, but not for wireless broadband, which was a significant information gap for consumers.

"Providers have moved away from the unhelpful and confusing practice of using 'up to' theoretical maximum speeds and are instead using independently verified speeds from the Commission's Measuring Broadband New Zealand (MBNZ) programme which tell consumers what speeds they're likely to get in real life," Gilbertson said.

"Speeds are very useful to consumers when comparing plans and identifying what's right for them - so we want to make sure that peak time download and upload speeds are always provided whenever available from MBNZ."

He said the refresh guidelines would make it mandatory for service providers to offer and 'exit right' if performance was materially different to what was advertised.

"Finally, we want consumers to have access to at least 12 months usage and spend information, as is the case with mobile, so they can determine whether they're on the best plan and technology for their usage and spend.

"Some providers are already doing this and we'd like to see it become standard practice across the board."

Industry feedback on the revised guidelines was open until 6 November.

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