Ofcom has unveiled a new voluntary code for providers of broadband to business in an attempt to provide more accurate and reliable information on speeds.

Seven telcos - BT Business, Daisy Communications, KCOM, TalkTalk Business, Virgin Media, XLN and Zen – have agreed to participate.

The signatories agree to give businesses clearer information before a contract is signed, to manage any problems that businesses have with broadband speeds effectively, and to allow customers to exit the contract at any point if speeds fall below a minimum guaranteed level.

It applies to all businesses, regardless of size, and to all standard business broadband services across all technologies, from DSL to wireless and fibre.

The UK regulator said it concerned about the mismatch between what broadband customers believe they are buying and the actual service delivered.

The new code means enterprises will get “a similar level” of protection as residential broadband users, Ofcom said.

Mike Cherry, Policy Director for the Federation of Small Businesses, said: "The new Code of Practice announced by Ofcom is a timely and well targeted intervention in the business broadband market.”

Ofcom Chief Executive Sharon White added: "Ensuring consumers get the best possible communications services is Ofcom's top priority.

“And that includes businesses getting the broadband speeds they need. Yet too many buy unsuitable broadband packages because of confusing or insufficient sales information, or are hampered by slow speeds after they've signed on the dotted line.”

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