Last month Ofcom implemented new broadband migration rules which require companies to provide customers with Macs within five days and free of charge. This system replaced one of self-regulation and was meant to provide customers with choice and protect them from firms going bust.

Price wars have put consumers into the driving seat and these new rules give them even more power. According to the FT “broadband prices have fallen from an average of £17.35 per megabit in mid-2005 to £2.62 per megabit today.”

The measures were partially in response to the fact that between September 2005 and September 2006 more than fifty per cent of the complaints received by the telecoms regulator were to do with broadband problems.

Well now Ofcom’s new regulations have been put to the test and seem to have worked well. Perhaps too well.

When the rules came into effect Ofcom promised that it would monitor industry to ensure that companies stick to the rules and has the power to fine non-compliant companies up to 10 per cent of their turnover. It also put the onus on the wholesaler to step in if a retailer is in trouble.

The Register recounts the process behind the collapse and carve up of failed ISP Biscit Internet last week.

Their impression is that things went rather smoothly. When Biscit went under, Ofcom and BT arranged at the last moment a helpline to provide MACs to customers.

According to the Register:

Ofcom spokesman Simon Bates said: “Was it perfect? No. It’s been a valuable learning experience.”

He added that the number of complaints the regulator has received about Biscit’s collapse was a sign that the rules had empowered subscribers. “We’ve had as many complaints, if not more, but that’s because of the new rules rather than in spite of them. People are more aware there’s regulations, which made them more likely to come to us.”

Bates told us Ofcom expects the rules to get an acid test when it launches its first investigation based on the new regime. It is currently examining complaints about the handling of the Biscit collapse for evidence of consumer harm, which would be required to kick off the process.

Bates is probably right but it seems a bit perverse that a successful measure of an initiative is an increase in the number of complaints. When analyzing their complaints data how will Ofcom decide which are genuine and actionable and which are simply signals of empowerment?