Optus to compensate homes as ACCC targets slow NBN speeds

Optus will compensate 8700 homes, as the consumer watchdog targets telcos which fail to deliver promised NBN speeds.

The NBN rollout.

Optus has finally revealed exactly how many of its customers were sold substandard services over the National Broadband Network (NBN), with 8700 homes to receive compensation from the telco.

According to the Australian Competition and Consumer Commission (ACCC), the telco had failed to deliver the high speeds offered to its customers between September 1, 2015 and June 30, 2017, including the “Boost Max” plan which advertised maximum download speeds of up to 100 megabits per second (Mbps) and maximum upload speeds of up to 40 Mbps.

Optus has joined Telstra in remedying its error, with the telco saying that technical limitations on the fibre to the node (FTTN) or fibre to the building (FTTB) NBN connections, meant that the advertised speeds couldn’t be delivered.

“Worryingly, many affected Optus FTTN customers could not even receive the maximum speed of a lower-tier plan. This is a concerning trend we have seen throughout the industry and we are working to fix this,” ACCC boss Rod Sims said.

The majority of the complaints are on the high-speed 100/40 plan, with 5430 homes affected. According to the ACCC, 2337 of these premises couldn’t even get the 50/20 service.

Optus, which has admitted that it may have contravened Australian Consumer Law (ACL), has provided a court-enforceable undertaking to the ACCC detailing the remedies it will provide to affected customers, including refunds, moving speed plans, discounted speed plans, and exit from contracts without paying a fee.

Optus has until March 2, 2018 to notify affected customers. Residential customers who are unsure if the undertaking applies to them can contact Optus on 1800 780 219.

Mr Sims said affected consumers must carefully look at the options offered by Optus.

“In some cases, consumers may consider it preferable to simply exit their contract with a refund rather than accept a service that does not meet their needs,” Mr Sims said.

The court-enforceable undertaking also requires Optus to check within four weeks of connecting a customer to a new NBN speed plan that they are getting the advertised speeds they are paying for.

Last month, Telstra announced that it would compensate 42,000 customers after failing to provide customers with the promised speeds.

While the big two retail NBN service providers have now clarified the extent of the compensation and agreed to more transparent and honest advertising on plans, other telcos, most notably TPG Telecom, are yet to agree to any enforceable undertaking.

Mr Sims said other telcos were also in the regulator’s crosshairs.

“We are continuing to investigate other retail service providers selling NBN broadband plans, and will take enforcement action if we consider that they are not delivering on their promises to customers,” he said.