A number of different broadband providers have signed up to a new code that will ensure that they provide accurate data on broadband speeds.

Companies that have already signed up to the Ofcom code include Virgin Media, TalkTalk Business, BT Business and Daisy Group. The code came into effect at the end of last month, and the participating broadband providers need to make certain that their estimates of download speeds and upload speeds for business services are accurate. Businesses that do not get the promised speeds from their providers will be allowed to leave their service contracts without incurring any penalties.

Ofcom’s research has shown that many SMEs are unsure about the actual broadband speeds that are available, and not all providers give individual estimates on speeds when customers are signing up. Often, customers only find out later that the speeds are not what they expected.

Lindsey Fussell, the consumer group director of Ofcom, said that the regulator body’s job is to ensure that the best possible communications services are provided to customers. However, there are too many businesses that are not getting the services promised when they are signing contracts.

The new code will require providers to give clear information that is as accurate as possible so that customers can make the right decision about the broadband package that they want. The system also means that unsatisfied businesses can enjoy the peace of mind of being able to terminate their contracts without having to pay any fees.