ISPs now required to provide minimum broadband speed guarantee - or customers can leave penalty free

Ofcom code of practice requires ISPs to be upfront about their broadband services

Ofcom's new code of practice has come into force today, requiring ISPs to provide customers with a minimum broadband speed they can expect - or let them go penalty free if the connection is not improved within a month.

Formalised a year ago, the code of practice is voluntary, but BT/EE/Plusnet, Sky, TalkTalk and Virgin Media have all signed up to it, accounting for around 95 per cent of the consumer broadband market in the UK.

The minimum speed guarantee applies to ADSL broadband, fibre-to-the-cabinet services and cable.

Providers will also be required to provide customers with realistic speed estimates for peak times, which are defined as between 8pm and 10pm for home users, and between 12pm and 2pm (ie: lunch time) for businesses.

Ofcom's own research found that in 2017 average download speeds for residential customers were 34.6Mbps during the 8pm-10pm peak period, compared to average maximum speeds of 39.1Mbps.

If a customers' broadband speed drops below an ISPs' promised guarantee, Ofcom's new code will give ISPs one month to improve performance or allow customers to walk away without paying a penalty.

This right to exit a contract will also include landline and TV packages, bought together with broadband, for the first time.

For business customers, BT, Daisy, TalkTalk and Virgin have also agreed to comply, while KCOM and XLN have "signed up in principle, and expect to be compliant shortly".

Ofcom consumer group director, Lindsey Fussell, said: "When you sign a contract, you should be treated fairly and know exactly what you're getting."

She continued: "These protections mean broadband shoppers can buy with confidence. Before they sign up, customers will be told their minimum internet speed. And if companies break that promise, they'll have to sort it out quickly, or let the customer walk away."

Ofcom says it will keep a keen eye on companies' compliance with its new requirements, and will report on their performance next year.