New Zealand’s Spark warned off marketing Gigabit plans
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New Zealand operator Spark has been cautioned against advertising its high-speed fiber services as “gigabit” plans by competition regulator the Commerce Commission.
The ISP launched its fastest fiber service yesterday, labeling it “Ultra Fast Fibre MAX” instead of the planned Gigabit name.
The Commerce Commission held that advertising the service as a Gigabit speed would mislead consumers into expecting speeds of 1,000Mbps, whereas the Spark service will deliver speeds of between 700Mbps and 900Mbps.
As well as Spark, the Commission also plans to get into contact with other ISPs making similar claims, noting that it has received enough consumer complaints to deem the action necessary.
The Commission hasn’t made a formal ruling, but said Spark had recognized the concerns the regulator had raised and decided to take action accordingly.
But the Telecommunications Users Association has criticized the decision as being “pedantic”, noting that other markets advertise similar-speed plans as Gigabit services, and that technical constraints will mean services always fall below their full potential speeds.
Questions & Answers
Q.Why was Spark cautioned about its gigabit plans?
Why was Spark cautioned about its gigabit plans?
The Commerce Commission believed advertising the service as gigabit would mislead consumers into expecting 1,000Mbps, when Spark's service delivers between 700Mbps and 900Mbps.
Q.What is Spark's new high-speed fibre service called?
What is Spark's new high-speed fibre service called?
Spark has named its fastest fibre service "Ultra Fast Fibre MAX". This was adopted instead of the previously planned Gigabit name after the Commerce Commission's caution.
Q.Are other internet providers also being contacted by the Commerce Commission?
Are other internet providers also being contacted by the Commerce Commission?
Yes, the Commission plans to contact other ISPs making similar claims about gigabit speeds. This action follows a sufficient number of consumer complaints received by the regulator.
Q.What is the Telecommunications Users Association's view on this decision?
What is the Telecommunications Users Association's view on this decision?
The Telecommunications Users Association criticised the decision as "pedantic". They noted that other markets advertise similar speeds as Gigabit and technical constraints mean services rarely reach full potential.
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