Proposals to allow UK broadband users to break contracts with underperforming ISPs have been rejected by the telecommunications watchdog, it has been reported.

Ofcom's Consumer Panel urged Ofcom to establish a binding code of conduct, which would allow customers to switch ISPs or break contracts if they did not receive the broadband connection speeds promised in the firms' advertising.

However, in a letter addressed to the committee's chair, Ed Richards, Ofcom's chief executive, dismissed the proposal, PC Pro reports.

Instead he said Ofcom would be demanding that ISPS offer their customers "the choice to move, penalty free, onto a different speed package based on the [actual line speed] information provided."

Mr Richards did, however, express broad support for the panel's recommendations, which included compelling ISPs to contact their subscribers two weeks after installing the service to notify them of the actual connection speed they are receiving.

He said: "We agree that it is a vital issue for consumers and Ofcom has already been looking at these issues. Our initial proposals, on which we will be engaging with consumer groups and industry early in the New Year, are very much in line with the measures set out in your letter."

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