Best intent

I saw that Finland has issued new rules that are intended to simplify comparison shopping for broadband consumers:

The speed included in the contract must depict the true speed range of the connection with sufficient precision. It is not sufficient to only express the maximum speed or theoretical maximum speed of the broadband connection. In the future, the speed range must be expressed either by using the average data transmission speed or the range of data transmission speed with unambiguous minimum and maximum caps. The speed must be defined so that the promised quality can also be delivered during rush hour or during any sequence of maximum of four hours.

I understand what the Finnish regulator is trying to do, but it seems to me that it has missed the mark. For example, what consumer benefit is derived from having an “unambiguous maximum cap” on the speed? We have service providers in Canada that allow consumers access to extra fast speeds during off peak periods – this consumer benefit appears to be forbidden in Finland, in the interest of comparitive clarity.

It is an unintended consequence of nanny like regulations, protecting consumers from themselves. By removing flexibility in service delivery options, Finland is unintentionally reducing the flexibility of service providers to innovate and differentiate their services.

Consumers might be better served by improved education – getting better armed with questions to ask when shopping for service.

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