Right to price reduction for slow internet: This is how consumers use their right

Right to price reduction for slow internet: This is how consumers use their right

According to a report from www.deutschlandfunk.de,

Since mid-December 2021, consumers have had the right to reduce prices if their home internet is worse than contractually guaranteed. You have to prove the discrepancy between the contractually promised and actual data rate using a measurement tool from the Federal Network Agency, www.breitbandmessage.de.

The Federal Association of Consumer Organizations (VZBV) is calling for a flat rate reduction of 15 euros per month until the deficit is eliminated. However, the VATM industry association is against a blanket tariff reduction and argues that the individual case must be considered because the contracts available on the market contain very different services. Internet providers such as Vodafone and Deutsche Telekom emphasize that they invest a lot of money in their network to enable a faster and more stable connection.

According to the Federal Network Agency, around 108,000 Internet users started the necessary measurement campaign between mid-December 2021 and the end of December 2022, but only 29,000 of them completed it and in almost all cases were certified that they were entitled to a price reduction. Many people canceled the campaign beforehand, either because their home landline wasn't as bad as initially thought, or because it was too laborious to carry out all 30 measurements in the required time window.

This new regulation may have a significant impact on the market. Internet providers must now expect that more consumers will make use of their right to reduce prices and claim a price reduction. This could lead to higher customer churn as consumers may be inclined to switch providers if their ISP is not performing well. In addition, providers could be forced to invest more in improving their networks in order to provide the required services and avoid price reductions.

However, the fact that many consumers abandon the measurement campaign also shows that the process may be too burdensome for consumers and simplification may be necessary to reach a larger number of consumers and ensure fair price reductions.