Gold Coast internet provider OntheNet pulls plug on NBN service after speed and congestion issues

A LEADING Gold Coast internet provider has announced it will stop selling some National Broadband Network services after becoming fed up with slow speeds and congestion.

OntheNet says it will stop selling NBN fixed wireless services until congestion and speed issues are resolved.

A LEADING Gold Coast internet service provider has announced it will no longer sell National Broadband Network services because of speed and congestion issues.

Varsity Lakes-based OntheNet said it won’t start selling the NBN fixed wireless services, provided to rural and Hinterland customers, until backhaul congestion and speed issues are resolved.

OntheNet CEO Tak Woo said the speed issue has become so bad that it has upgraded customers on the 25MB plan up to 50MB at its own expense so clients can get the speed they paid for.

“We are the first to say this is getting to the point where it is unworkable,” Mr Woo said.

“We decided if we cannot do a good job it is better to hold off.”

Tak Woo, managing director of OntheNet. Photo: Regi Varghese

The rollout of the NBN on the Coast has been plagued by technical difficulties.

Last year local service providers were blindsided by NBN’s announcement of a “temporary pause” to new orders for Hybrid Fibre Coaxial (HFC) connections. The delay, of between six and nine months, was ordered to fix technical issues in the network, including a high-rate of dropouts.

Mr Woo said it was disappointing to have to temporarily cease NBN sales but it was necessary to take action “in the best interests of customers”.

“We are actively working with NBN to monitor the progress of improving NBN fixed wireless services,” he said. “We are encouraging customers who are able to order NBN fixed wireless services to wait until the problems are resolved.

NBN Co says just one cell at the Guanaba tower on the Gold Coast is experiencing congestion at peak times.

“Existing OntheNet NBN fixed wireless customers are not affected by this announcement. This temporary cease of sales only applies to NBN fixed wireless services.”

OntheNet will continue to service customers in areas with HFC, FTTP (fibre to the premises), FTTN (fibre to the node), FTTB (fibre to the building) and FTTC (fibre to the curb) technology.

“We have just increased our NBN footprint to the Grafton Point of Interconnect (POI) covering a large part of northern NSW,” Mr Woo said. “This is an area with large NBN fixed wireless coverage. Like the HFC issues, I hope that NBN will have the backhaul congestion and speed issues fixed in time.

“Unfortunately we will have to wait a little longer.”

The National Broadband Network rollout has been plagued by problems.

An NBN Co spokesman said just one tower on the Gold Coast was experiencing congestion at peak use times.

This related to one cell of three on the Guanaba tower.

“Due to higher than expected take-up rates of services over the fixed wireless network, as well as significant growth in internet usage, we have identified a small number of homes and businesses connected to the NBN fixed wireless network which may be experiencing congestion at certain times of the day,” he said.

“This is certainly not a widespread issue and is isolated to less than 6 per cent of cells nationwide.”

The spokesman said an upgrade of the Guanaba tower was expected to be completed by November this year.