Under a November 2017 court-enforceable undertaking, Telstra was required to check customers’ broadband speeds if they were connected to the NBN via FTTN or FTTB technology.
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.
But in August 2019 Telstra advised the Australian Competition and Consumer Commission (ACCC) that it had failed to check the maximum broadband speeds of 180,000 Telstra or Belong services which moved to a higher-speed tier plan. About 168,000 plans had been upgraded by Telstra or Belong at no extra cost for an unrelated reason.
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It also meant they were not offered options to address slow speeds, such as exiting their contract or receiving a refund.
The ACCC says Telstra has since committed to contacting all affected customers and refunding those who have been paying for the higher speeds but not receiving them.
And it will also pro-actively move consumers to a lower speed NBN plan if they are not receiving any benefit from being on a higher speed tier NBN plan.
“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.
“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,” Sims said.
