Quote (I'm typing from a fax so forgive the typos):
>>>>
The Adertising Standards Authority of South Africa (ASA) requested an opinion from the Internet Service Providers' Association (ISPA) on complaints received about Sentech's MyWireless service.
Specifically, you requested ISPA's opinion on the following:
- The meaning of the term "broadband" in "internet speak"
- Whether broadband has any impact on the user or the user's speed.
- The likely expectation of a consumer when broadband is offered.
ISPA's
Regulatory Committee has carefully reviewed all of the relevant documentation and wishes to make the following comments.
1. Meaning of "broadband"
ISPA consurs with Sentech's submission that there is no uniform or standardised definition of the term "broadband". However, in parctice, the term "broadband" is used in the Internet sector to differentiate higher speed access from traditional low speed services, such as dial-up Internet access.
Therefore, in ISPA's opinion, "broadband Internet access" is any form of Internet access which provides significantly faster access to the internet that traditional dial-up services. In ISPA's view, "significantly faster" means at least for or five times the speed of traditional dial-up services.
2. The impact of broadband on a user's speed
When used in the context of internet access services, the term "broadband" is always a measurement of the relative speed of the service. It *must* therefore have an impact on the speed of the service provided to users of the service.
3. Consumer expectations
Given that, in the context of internet access services, "broadband" is used specifically to differentiate high speed access services from traditional low speed services, ISPA believes that a consumer's expectation when a "broadband" service is offered is that the broadband service will offer access speeds several times greater than those provided by a traditional dial-up service.
In a South African context, Telkom was the first company to offer an internet service which could be described as "broadband". Specifically Telkom's ADSL access service offer download rates typically around six to eight times the speed of a traditional dial-up offering. Therefore consumer expectations for other broadband services are for similar access speeds.
ISPA also wishes to comment on portions of the complaint beypnd the three points specified in your request.
1. Contention ratios/speed of Internet access.
ISPA supports Sentech's claims that the Internet access speed are highly dependent on the number of people simultaneously using the service at a given time (the contention ratio of the service). However, while the argument that all Internet access services are subject to some level of contention explains why customers may experiance variable access speeeds, depending on the current contention, it does not address the issue of customers' expectations for the service, given the marketing of the product.
ISPA also notes that in section 2.1.2 of Sentech's response, Sentech states that "other internet service providers [...] do not give/state a speed a customer will receive, nor guarantee it in any of their internet service products that they sell. This is because they use the principle applied by all Internet Service Providers (ISPs), namely contention (sharing)."
Given this observation, ISPA is forced to question Sentech's choice of "MyWireless 128", "MyWireless 256" and "MyWireless 512" as product names. In ISPA's opinion, the inclusion of an access speed in the product name would seem to create some level of expectation that the access service provided will be a specified speed. Given that Sentech's service is also subject to contention, Sentech's own response seems to indicate that Sentech should *not* state a speed in its product names.
Further, in Section 4 of Sentech's submission, in response to one of the complainant's request that the words "SUBJECT TO CONTENTION RATIOS AND THROTTLING" be added to Sentech's advertisements, Sentech states that "contention is the applied norm [for] Internet service providers [and that] this omission does not constitute false or misleading advertising". This seems to conflict with Sentech's earlier observation that the industry norm is not to state speeds in product names.
In ISPA's view, where not speed is specified in the product name, there is not need to include "subject to contention ratios and throttling", since the consumer does not have a specific speed expectation. But where a product name does include a speed, it may well be appropriate to include clarification that the listed speed is subject to certain resptrictions.
2. Access speeds experience by customers using the MyWireless service
Sentech's response to the complaint does not appear to contest the complainants' claims that the effective throughput they are currently obtaining via their MyWireless service is comparable to a dial-up access service.
Since the likely expectation of a consumer ardering a "broadband" service is that the service will offer significantly better performance than dial-up (at least four to five times faster), it is of concern that Sentech does not address the slow speeds allegedly experienced by the complainants.
It is important to note that ISPA has not performed any tests of the access speeds that Sentech's service offers, and that we have no evidence that the speeds experienced by Sentech's customers are comparable to dial-up access speeds other than that contained in the complaints.
ISPA hopes that this input will assist the ASA in evaluating the complaints, and we remain available to provide further input on this matter, if necessary.
--- end ---
<<<<
Dr Potgieter (General Manager Marketing Department, Sentech)
and
Ms Jocelyn Scharrer (Managing Director,
Scharrer Advertising and Marketing)
have been given until close of business on 22nd September to comment.
<hr noshade size="1">
Donn Edwards
<div align="right">
Just because they <b>say</b> it's broadband doesn't make it so</div id="right">