FCC report: Most Internet providers not matching advertised speeds

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"Almost across the board, the July 2012 Report shows that [Internet service providers] are doing a better job of delivering what they promise to their customers today than they did a year ago," the commission wrote.

The National Cable and Telecommunications Association also touted the report's findings.

"Based on rigorous third-party testing, the Commission has again confirmed that consumers across the U.S. consistently are receiving faster and more robust cable broadband service," the group wrote on its website.

While some providers, including Cablevision, Comcast and Verizon's fiber service, actually exceed their advertised speeds on average, many other providers are still falling short.

Frontier performs the worst in the study with speeds just 79 percent as fast as advertised. Qwest at 83 percent and AT&T at 87 percent also fall short. Verizon's DSL service is only 87 percent as fast as the company advertises, according to the study.

FCC Chairman Julius Genachowski applauded the providers for improving on last year's figures, but said more needs to be done. 

"Millions of Americans have improved broadband performance. This is good news for consumers and the economy, but we need to keep pushing for faster broadband speeds and greater capacity," Genachowski said in a statement. "Bandwidth abundance is essential to driving innovation and unleashing the benefits of broadband, including increased education, healthcare, and job-creation opportunities across the country.”

The study found that most providers improved their real speeds, rather than just lowering their advertising claims since last year's report. The providers also did a better job maintaining speeds during peak consumption times, according to the report.

—Updated at 3:52 p.m.