Optus to compensate thousands of customers for slow NBN

Joanna Estrada
December 11, 2017

Speaking to the Joint Standing Committee on the National Broadband Network, Morrow said he would rather customers continue asking RSPs for data, who in turn need to get the data from NBN, and said he didn't want the government-owned wholesale to becoming the "data speed police". "This included a "Boost Max" which advertised maximum download speeds of up to 100 megabits per second (Mbps) and maximum upload speeds of up to 40 Mbps (100/40 Mbps)".

Optus will compensate more than 8,700 customers after the country's consumer watchdog found the telco was offering NBN plans with speeds slower than advertised.

The ACCC said that Optus had provided it with a court-enforceable undertaking that outlines a range of remedies including refunds, shifting speed tiers, discounts, and the ability to exit a contract without a termination fee.

Optus will also be required under the court-enforceable undertaking to check within four weeks of connecting a customer to a new NBN plan that they are getting the speed they paid for.

"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.

"This is a concerning trend we have seen throughout the industry and we are working to fix this", ACCC chairman Rod Sims said in a statement.

The ACCC said 5430 Optus FTTN consumers on a 100/40 Mbps plan could not receive 100/40 Mbps, and 2337 of those consumers could not receive 50/20 Mbps.

A further 1519 consumers on 50/20 plans could not achieve this maximum and 1381 on 25/5 plans could not achieve this 25/5.

The deal's been announced after the company admitted that by promoting speed plans that it could not deliver, it engaged in "misleading or deceptive conduct and making false or misleading representations".

"We apologise to customers who have been affected by this error and are putting a process in place to rectify this issue".

The Telecommunications Industry Ombudsman said residential consumers or small businesses with speed issues relating to services delivered over the NBN should contact their service provider first, before contacting the TIO if the complaint remained unsolved.

Morrow said that if a user is unhappy with the speeds attained from the retailer once connected, it is a matter between the retailer and the customer to determine whether they are able to receive a refund.

Even 266 users on Optus' 50 megabit-per-pecond NBN plan could only receive half that download speed or less. "The main focus will be on Telstra, Optus, Vocus and TPG. If we find a small one doing something terrible, of course we'll take action as well, but the four biggest players are 90 per cent of this market", he said.

Other reports by Click Lancashire

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