Telstra and Belong may be short-changing NBN users on broadband speeds, ACCC warns
NBN users have been urged to check they’re getting the download speeds they’re paying for after Telstra admits it has “let down” customers.
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AUSTRALIA’S largest internet provider could be short-changing thousands of customers despite pledging to check the speed of their connections to the National Broadband Network.
The Australian Competition and Consumer Commission revealed the oversight today that affected as many as 180,000 households, and urged Telstra and Belong internet users to “check that they are not paying for something they are not receiving”.
The behaviour could also hit other Australian broadband users, and the consumer watchdog revealed it was “looking closely” at whether additional internet providers were delivering the download speeds they promised.
The potential rip-off affects Telstra and Belong customers who upgraded their broadband plan to a higher speed tier over the NBN’s fibre-to-the-node or fibre-to-the-basement technology.
In late 2017, Telstra committed to checking whether its broadband customers could actually receive the download speeds they were paying for and, if they could not, offer refunds, plan changes, and contract cancellations.
But ACCC chairman Rod Sims said Telstra admitted it had failed to check the broadband speeds of 180,000 customers who upgraded their plans, and had potentially been charging them for speeds that were unattainable.
Telstra will now perform the promised broadband checks and issue refunds to users who have been overcharged.
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“Everyone who receives an email or letter from Telstra about their NBN service should take note of the maximum speed they are getting and check that they are not paying for something they are not receiving,” Mr Sims said.
“Your maximum speed stays the same no matter which provider you’re with so once you know your maximum speed make sure you are getting the best deal available for you.”
A Telstra spokesman said the company alerted the ACCC when it discovered the oversight.
“We’re disappointed that we’ve let some customers down and we know this isn’t good enough,” he said.
“Depending on the speed customers were receiving and the plan they’re on, we’re updating their speeds, offering credits or contract termination with no exit fees.”
Mr Sims said the watchdog was “looking closely at other telcos who gave us similar undertakings” to make sure they were also providing the broadband speeds they promised.
Other companies which made similar NBN commitments included Optus, TPG, iiNet Internode, iPrimus and Commander.
The NBN’s controversial fibre-to-the-node technology, introduced in 2013 as part of its “cheaper” multi-technology mix architecture, have an average top speed of just 67 megabits per second, meaning households with the technology may not be able to sign up to a 100mbps plan.
Connection speeds vary to each premise, however, and a report last year revealed 1.3 per cent of FTTN connections did not even meet the minimum speed requirements of 25mbps.
Originally published as Telstra and Belong may be short-changing NBN users on broadband speeds, ACCC warns