ACCC to address NBN speed confusion

The ACCC will issue new guidelines designed to reduce confusion about the advertised speeds of NBN broadband plans.

The regulator will work with NBN retail service providers to ensure greater clarity, in response to an ACCC consultation finding that 80% of customers are confused about the speed their plan is meant to provide.

The consultation also found that customers want broadband plan speeds presented in a simple, standard way to make price comparisons easier.

Minister for Regional Communications Fiona Nash welcomed the announcement, stating that some regional customers have been complaining about the speeds delivered by their plans. But she said the confusion isn’t the fault of nbn.

“It seems some companies are buying less access — slower speeds — and then selling those plans without clearly stating the speed, or just labelling the plans ‘NBN’ plans without clearly stating the speed. This results in disappointed customers,” she said.

“Using the term ‘NBN’ to suggest a very fast speed when that’s not what you’re actually selling is unacceptable. I’d also be deeply disappointed if retail companies were trying to deflect brand damage onto NBN if they’ve not passed on the full benefits of NBN to customers. Plans selling NBN cover a range of speeds and pricing and customers need to be able to easily tell which speed they’re paying for.”

But Internet Australia CEO Laurie Patton questioned the assertion that nbn is not to blame, asserting that a large part of the problem lies with the insistence on continuing to use Telstra’s ageing copper technology for last-mile access, as well as the “flawed” wholesale pricing regime.

“The fact is [retail service providers] make better margins for themselves by selling the slower speed tiers. Plus they risk receiving more complaints from angry customers if they sell the higher speed packages and nbn fails to deliver,” Patton said.

“We support the ACCC’s proposal for independent broadband monitoring, of course, and we agree that there should be more transparent advertising of speed capabilities by RSPs. But all that’s a tad moot if the technology can’t actually deliver the speeds consumers are after.”

Image courtesy of CollegeDegrees360 under CC

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