Telstra breached obligations over slow nbn speeds

Telstra and its subsidiary Belong have admitted to failing to meet its court-enforceable obligations to check the maximum broadband speeds of 180,000 nbn customers and offer remedies for underperforming connections.

Under a court enforceable undertaking Telstra agreed to in November 2017, the company was required to check customers' broadband speeds if they were connected to the nbn via either fibre-to-the-node or fibre-to-the-building technology.

If a customer’s connection wasn’t able to get the maximum speeds available under their plan, the company was required to offer remedies including the option to change or exit their contract at no extra cost.

But Telstra advised the ACCC in August this year that it had failed to conduct these tests for 180,000 Telstra and Belong customers.

Around 168,000 of these had been upgraded at no extra cost for unrelated reasons.

Telstra has committed to contacting all affected customers and refunding those who have been paying for higher speeds they have not been receiving. The company will also proactively move these consumers to a lower speed plan at the attendant lower prices.

“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,” ACCC Chair Rod Sims said.

“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.”

Image courtesy NBN Co.