It probably means that you're too far from the exchange.
Most BT broadband exchanges can deliver up to 2Mbps, but this only applies to locations close to the exchange. Further away, you'll only get a maximum download rate of 1Mbps. Further away still, you'll only get a maximum of 0.5Mbps. (Beyond this range, BT say that Broadband is not available).
Until your area is recabled with fibre optic cables (rather than copper wire ones), you won't have access to the higher speeds (up to, or beyond, 16Mbps, with no significant signal losses between the exchange and the user) that are commonly achieved with fibre optic transmission.
Chris