ISPs ranked close to bottom in EU satisfaction survey

Only real estate and pension industries are held in less esteem

ISPs are likely to shrug off the EC's findings

Internet service providers (ISPs) have come third from bottom in an EU-wide consumer satisfaction survey covering 50 vertical market.

Only an even more dismal showing by real estate services and pensions saved ISPs from the wooden spoon in the European Commission’s most recent Consumer Markets Scoreboard.

The survey looks at a series of indicators, including comparability, trust, problems and complaints, to create a market performance indicator (MPI).

ISPs accounted for the highest percentage of reported problems by consumers out of all the markets in the survey.

In light of the results, the Commission plans to carry out an in-depth study of the ISP market to find out why consumers are so unhappy and look for possible regulatory solutions.

“The results of this survey are not really surprising,” said a Virgin Media spokesperson.

“Internet service is a market where entrants have tried to undercut the incumbents by offering very cheap broadband and consequently consumers see it as a commodity instead of a premium service,” they added.

“But there is a stark difference between receiving water supply and broadband.

“There are many reasons why your broadband may not be what you expect; for example the type of wiring in your house can affect it."

Fernando Elizalde, industry analyst for Gartner, said he was not surprised by the consumer complaints but doesn't think this will be of much concern for the major ISPs.

"Consumers are complaining because the bandwidth they receive is rarely what they are promised and there are always drops in sevice," he said.

"However, I doubt this scoreboard will be taken too seriously as I think that the methodology is unusual. For example, internet service is being compared with fruit and vegetables. Also, the major European incumbents aren't normally responsive to consumer complaints."

In related news, Google has announced a plan to trial 1Gbit/s broadband in the US, starting in early 2011. In the UK Virgin Media is currently trialling a 200Mbit/s service.

Google announced it will team up with with Stamford University to provide " ultra-speed" broadband to 850 faculty and staff-owned homes on campus.