Encourage performance guarantees in ISP contracts

After repeatedly experiencing intermittent Internet connection, I decided to find out if the Internet Service Providers’ (ISPs) terms and conditions for broadband service contracts include service quality commitments, be it in terms of guaranteeing minimum uptime, how long it takes to resolve issues, or even committing to providing timely updates of resolution.

To my dismay, all five ISP contracts I reviewed are silent on any form of service commitments. I believe the current market structure does not incentivise ISPs to commit to more guarantees on their service standards, and either the Consumers Association of Singapore or the Info-Communications Media Development Authority should step in to encourage performance guarantees in ISP contracts.

If a telco does not meet its performance guarantees under the contracts, it could offer customers fee credits, or even the option of ending the contract, on the basis of material breach. This would have an immediate impact on the ISP’s bottom line, and push it to properly monitor and prevent service disruptions.