Internet access transparency - PTS-ER-2011:29
08/12/2011
Do consumers get sufficiently clear information about limitations in the service and the possibility to switch service provider?
It is an express policy objective, both nationally and internationally, to retain an open Internet and ensure functional competition and freedom of choice for consumers on the Internet. In order to achieve these objectives, consumers need to have clear information about the properties of the Internet access services marketed and better preconditions for switching service provider.
This report covers part of a Government Assignment concerning information measures for enhanced openness in respect of broadband and Internet connections. The Swedish Post and Telecom Agency (PTS) has conducted this assignment in close cooperation with the Swedish Consumer Agency.
In this report, PTS and the Swedish Consumer Agency have examined whether Internet service providers provide sufficiently clear information about
- restrictions in access to services and content
- the costs involved in switching service provider
A large number of provisions of the Electronic Communications Act (2003:389 – LEK) were amended on 1 July 2011. PTS wishes to make it clear that the interviews and review on which this report is based were carried out during the late spring of 2011, when the new information requirements contained in LEK had not yet entered into force. In other words, it may be the case that Internet service providers have adjusted their information for consumers as a consequence of the new legal requirements.
The review shows that some aspects of the information for consumers are clear, but that there is scope for improvement in other areas. Information about traffic caps constitutes one example of restrictions that are sufficiently clear, while restrictions in respect of the use of file sharing and IP-telephony must be made more clear in terms of the implication of these restrictions and must also be made easier to access.
However, in several cases the information is so unclear that the Swedish Consumer Agency is of the opinion that it may potentially contravene market law rules. This applies to information relating to lock-in periods and periods of notice, transmission rates for mobile Internet access services and also conditions concerning what is deemed to constitute abuse.
The report draws particular attention to there being a complete lack of information about traffic management, a shortcoming that is pressing and that may become even more important when use of such technology increases. The report concludes that Internet service providers already apply different kinds of traffic management and contractual restrictions in respect of access to services, and also that several Internet service providers in the mobile networks are acquiring the possibility of using such technologies to a greater extent.
Through their supervisory work, the public authorities can ensure that providers improve their information for consumers. PTS also has the power to issue regulations about how to satisfy the information requirements contained in LEK.
In 2012, PTS will review the need to issue regulations to ensure in the best way that consumers have a good information base on which to make informed choices. This work will be conducted in dialogue with the industry, the Swedish Consumer Agency and relevant consumer organisations.
In 2012, the Swedish Consumer Agency intends to examine the marketing conducted by Internet service providers, together with contract conditions, from the perspective of lock-in periods. This review will also include the marketing of offers ‘without lock-in periods’.
PTS and the Swedish Consumer Agency are both of the opinion that even if one were to receive full information about the difficulties associated with switching supplier, the obstacles created by, for example, long periods for notice represent in themselves a problem in the market. This has been shown in the previous work conducted by the authorities.
PTS and the Swedish Consumer Agency will also carefully monitor developments so that they are prepared if the situation should develop in such a way that further measures need to be taken to safeguard freedom of choice on the Internet.