New rule on carrier speeds from Sweden

When a carrier promises a maximum speed they need to deliver, at least in Sweden. The wireless operators have hidden behind claims that everyone "was doing the same thing" in regards to advertising their mobile speeds.

The Consumer Ombudsman, in Sweden, has declared otherwise, and he has the power to make the decision. Wireless carriers and providers must adjust their marketing campaigns to provide truth in advertising. The ruling says that if a carrier declares that a product or service will provide a certain speed of transmission then they must consistently meet that claim. The ability to routinely match a speed is much different than the ability to peak at that moment. This is clearly a victory for informed consumerism in the wireless market. The Consumer Ombudsman wants buyers to be able to understand exactly what they are buying when they make a purchase.

The ruling sets a deadline of May 25, 2009 to comply, or face the judgement of the Swedish Market Court which has jurisdiction over marketing claims.

Carrier Transmissions | Testing Site

The consumer outrage began when a Swedish internet site, Bredbandskollen (Broadband Check) introduced a service that allowed users to test their actual speeds. As many as one in five users who had subscriptions to 7.2 megabit per second service, were only able to manage 10% of the claimed rate of transmission from their carriers.

The carriers appear to have accepted the ruling gracefully. The general consensus being that if all of the carriers was bound by the ruling, the playing field would remain reasonably level.

This precedent is likely to affect rulings in other countries, which may model their regulations based on those now in force in Sweden.

The ruling affects both mobile and fixed networks. The carriers have begun to make strategic adjustments to their wireless advertising campaigns, in order to comply with the deadline.