If you're getting good speeds outside of peak times then the likelihood is that the network in your area has a contention ratio / utilisation issue. In simple terms it is oversubscribed and unable to cope with demand when it is at its peak.
I currently have the same issue, my speeds are good in the day at around 54Mb on a 50Mb package but right this minute they're about 5Mb and the connection is so variable its good for posting here and little all else.
If you wait for a member of the forum team to respond they should be able to look into this for you and if what I've said is the case you should be entitled to a discount off your bill. However, as for sorting the problem that's another matter entirely. A fault was raised for mine in October and the review dates have thus far been pushed to end of April. This is normal for VM as they seem to confabulate dates just to push them back and, in the meantime, service for paying customers continues to degrade as you quite rightly pointed out, they'll keep signing more people up onto a network that can't cope with the number already using it.
Welcome to the world of VM - great when it works, terrible when it doesn't.
Those are the speeds of my 200Mbps (dis)service this evening. I could probably just about accept it if speeds during peak times were throttled to 100 or even 50Mbps. But 5... What other services can provide 40x less than agreed and get away with it?
Frankly all I want to do is kick back and play the occasional game in the evening but alas even that is too much to ask from a TWO HUNDREDS Mbps service. It's laughable.
No doubt if I query the customer services team about early cancellation they'll raise the whole you're under contract nonsense, and they'd be right, too, if they were upholding their end of the deal. 40x slower? Pffft. I'm more than happy to look at legal proceedings if they want to kick up a fuss about me leaving.
I'd happily live with a constant, consistent 70Mbps than receive 200 during the day, when I'm not there to use it. Even my folks who live in Dorset in the middle of nowhere get 50 megs consistently from BT. I live in London and in get 5 megs in the evening. Whut?
outernet - I would recommend raising a formal complaint to VM. The contract cannot tie you in to a service if it is not delivering an acceptable standard that would be considered reasonable from how it is marketed. That is to say, if you've been sold 200Mb but are getting 1/40 of this during the times you are most likely to use the service. That is not reasonable.
At the very least VM should yield to a request to change down contract to a much cheaper tier without holding you to a further minimum contract term. They cannot sell you a package that only performs to it's headline speed when nobody needs or wants it.
If they had some form of bandwidth management back it would be something. It's all very well not throttling anyone's connection anymore but surely that must impact on their ability to deliver acceptable bandwidth on a per customer basis? As you say, it would be something to get 70Mb during peak time because at least that would be useable. Not unreasonable at all expecting 35% of headline downstream at peak time, but unfortunately not a hope of it happening it would seem.
Thanks for getting in touch, I'm sorry to see you have been having trouble with your speeds.
I've taken a look and it seems you're affected by fault ref F003525733 for slow speeds during peak times. This is with the planning team at the moment so I don't have a lot of news on this at the moment. We should have more information after 01/06/2016, I know this probably isn't the news you would have liked to hear. I will keep an eye on this for you and keep you updated on the progress of the fault.
I am going to pop you a PM, so keep an eye out for the Purple Envelope top right hand corner.
Do you find that you have slow speeds only at peak times or does this happen at other times of the day as well?
Might I point out to you however that fault F003525733 was first referenced in August 2015 with a review set for September 2015. As you can tell, that has been put back and it is not incorrect for me to say that there is no guarantee that, come June, anything will happen except for that review date being pushed back. If, by some slight chance the review occurs and the problem is solved then the issue will have taken 10 months to rectify.
Meanwhile I've little doubt that VM are still happily selling VIVID200 to unsuspecting punters despite knowing that demand for service in your area outstrips their ability to supply and has done for 8 months. Appalling sales practice.