Telstra to contact customers after NBN speed fail

Telstra is contacting thousands of customers on NBN plans after failing to comply with an undertaking it signed in 2017.

Telstra has conceded that it failed to comply with the terms of an enforceable undertaking it signed regarding NBN services in 2017. Picture: AAP

Telstra will contact almost 180,000 customers who upgraded to high speed NBN plans after failing to comply with a court enforceable undertaking it signed in 2017.

The telco was forced to refund about 42,000 customers in November 2017 for failing to deliver the advertised NBN speeds. The bulk of the affected customers were on the NBN fibre-to-the-node (FTTN) or fibre-to-the-building (FTTB) connections.

Apart from the refunds Telstra, also offered to give affected customers the option to change speed plans, and exit from contracts without paying a fee.

One of the additional requirements in the court-enforceable undertaking was for Telstra to check the speeds delivered to customers four weeks after they set up a new NBN service with the telco.

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If a customer’s connection wasn’t able to get the maximum speeds promised under their plan, Telstra was required to inform the customer of the maximum speeds attainable, and offer a remedy if the customer wanted to change or exit their contract.

However, in August this year the telco informed the Australian Competition and Consumer Commission that it had failed to carry out the mandatory four-week speed check on 180,000 customers as they upgraded to higher speed NBN plans.

“We found that some customers who had moved from one NBN plan to another were not hearing from us on the speeds they were receiving and were paying for speeds they could not get,” a Telstra spokesman told The Australian.

“We let the ACCC know and started contacting customers as soon as we found out. 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.”

“We’re disappointed that we’ve let some customers down and we know this isn’t good enough,” the spokesman added.

ACCC chairman Rod Sims said on Thursday that consumers must keep a close eye on the speeds promise by their telco when they sign up to a NBN plan and what they actually end up receiving.

“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,” he 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.”

“We are looking closely at other telcos who gave us similar undertakings to ensure they are checking speeds and providing options to consumers not getting the maximum speeds as promised,” Mr Sims said.