Internet price should reflect quality of connection, say Parliamentarians

Alistair Carmichael MP and Tavish Scott MSP have challenged the communications regulator Ofcom Scotland on the possibility of cheaper rates for broadband customers in the Northern Isles who do not received advertised speeds.

At a recent meeting of the North Isles Digital Forum attendees voiced their displeasure at having to pay the same prices for broadband as those who can attain a much higher quality of service on the UK mainland.

Writing to Ofcom, Mr Scott said that a lower tariff for customers with a lower quality of service would incentivise companies to ensure that improving rural broadband speeds. Ofcom’s response that while rural rates are not something they are considering, they have reduced the wholesale price that BT Wholesale can charge for internet service.

Commenting, Mr Carmichael said: “A 12 per cent cut in wholesale internet prices will not cut much ice with those people in the isles who are only able to access ten per cent, or less, of the speeds that providers are advertising locally. The fact that Ofcom have acted to reduce the price of broadband is welcome but it is clear that more needs to be done.

“Suggesting that the price of an internet service should reflect the quality of connection speed is hardly a revolutionary step. Ofcom need to look again at how companies charge their customers and ensure that people in Orkney and Shetland are getting a fair deal.”