O2 is the fastest broadband provider for its 8Mb package, new research finds.

Research into internet speeds from Moneysupermarket.com reveals 02 managed a greatest actual speed of 5.39 Mbps.

Second place went to Sky at 3.59 Mbps ahead of TalkTalk at 2.99 Mbps.

Further firms – including AOL, BT, Orange, Plusnet and Tiscali – all averaged between 2 and 3Mbps for their 8 meg packages.

“Broadband packages are always advertised as up to a certain speed. For example a greatest line speed of up to 8Mpb does not reflect the actual speed,” said James Parker at moneysupermarket.

He explained line speeds were dependent on a number of factors including distance from the telephone exchange, number of local users and type of cables.

However, while customer paying for higher speeds are not getting advertised internet speeds, those on 2Mbps deals are.

The speed tests, carried out on connections advertised between 2 Mb and 24 Mb, show for best value, people should look at 2 Mb products.

The results show they achieve an average speed of 2.11 Mbps at an average cost of £10 per month.

Deals offering least value for money are those with speeds greater than 16 Mb. The average cost is £18.60 but the average speed is just 7.02 Mbps.

In the coming year internet speeds should be cleared up with a new voluntary code from the regulator Ofcom.

Under the code internet service providers (ISPs) will have to tell users before they sign up their actual average speed.

Mr Parker said the code should “give customers more choice”.

“It all depends on what kind of user you are,” he said.

“Light users using the internet for an hour or so a night, speed is not the most important and they will focus on price. Bit for heavy users downloading films or music or using the internet for business, speed is a greater issue.”

He added: “Initially the Ofcom code will make ISPs more realistic about internet speeds.”

A spokesperson for TalkTalk explained: “What we ensure at present is at the point of sale customers are given an estimate of their internet speed.

“In some cases it will be as advertise and some cases it won’t. Some people need high speeds, but for most part when we explain why and look at what they need broadband for they don’t need such high speeds and are please we have given them information.