Chorus advocates stricter guidelines for broadband marketing

Chorus has called on the Commerce Commission to implement stricter broadband marketing guidelines to aid consumers in making informed decisions.

The call from Chorus comes as they submit their feedback during the Commission's review of broadband marketing standards. The telecommunications infrastructure company has pointed out that current practices by retailers such as One and 2degrees lack critical transparency regarding 5G wireless broadband performance. This issue leaves consumers without necessary information to make well-grounded choices about their broadband services.

Chorus' Chief Corporate and Regulatory Officer, Julian Kersey, stated, "It's essential that Kiwis can make clear, meaningful comparisons when choosing a broadband service for their household. They deserve straightforward, honest information - no spin, no guesswork. Without transparency across all providers, New Zealanders are left in the dark, and that's simply not good enough."

The company has pointed out a significant gap in the Measuring Broadband NZ (MBNZ) report, which currently omits full 5G wireless broadband data. This lack of inclusion, Chorus argues, hinders consumers from understanding the true nature of the services they are purchasing. Chorus advocates for the expansion of MBNZ reporting to encompass all major service providers in order to provide customers with a realistic view behind any promotional claims.

Julian Kersey expressed concern over the current state of information available to consumers, saying, "Consumers aren't receiving sufficient upfront information about 5G to make informed purchasing decisions. They are also left without a way to know whether the performance they've paid for is being delivered. In other words, consumers can't know if 5G is delivering what's promised on the tin - because the 5G tin doesn't say anything at all. This has to change if we want a fair market where Kiwis know exactly what they're signing up for."

In its submission, Chorus also highlighted the importance of consumers understanding the variability in 5G service performance. The company has stressed the influence of factors such as distance and the number of connected customers to a cell tower, which can affect performance, and urges for this variation to be transparently communicated upfront.

Kersey also remarked on the current marketing practices, "The current 5G marketing practices often obscure the reality, which could lead to consumer frustration and lost trust. Stronger guidelines are essential to ensure transparency and fair competition in the broadband market."

Chorus underscored several key points in its submission, including the importance of transparency in performance reporting. The company is advocating for mandatory MBNZ reporting across all major broadband providers, so that 5G Fixed Wireless Access (FWA) services will be measured to the same standards as other options. At present, only one retailer reports on 5G data, creating a lack of insight into the actual capabilities of 5G services.

Another point raised by Chorus is the need for retailers to disclose the true performance of 5G wireless broadband services, highlighting that consumers are frequently promised peak speeds that many do not consistently experience. Chorus insists that any reporting must accurately reflect real-world conditions rather than selectively curated results.

Additionally, Chorus recommends that there be mandatory location-based service performance disclosures, which would allow consumers to make informed decisions regarding whether a 5G wireless broadband service will meet their needs. This recommendation considers various elements that impact 5G performance, offering more precise guidance to potential customers.