Australia’s Telstra to compensate 42,000 customers amid ongoing NBN saga

By Tom Wadlow
Telstra, Australia’s largest telco, has agreed to offer compensation to approximately 42,000 customers after it advertised higher than delivered broad...

Telstra, Australia’s largest telco, has agreed to offer compensation to approximately 42,000 customers after it advertised higher than delivered broadband speeds.  

The deals involved surround the company’s National Broadband Network (NBN) packages. NBN, a state-owned enterprise charged with overseeing the rollout of fast broadband nationwide, has been blighted by cost and political issues since the project was conceived in 2009.

Among these deals offered by Telstra were a ‘Super Fast Speed Boost’ 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).

Limitations on the affected customers’ NBN fibre to the node (FTTN) or fibre to the building (FTTB) internet connections, however, meant that many customers’ internet services were not capable of receiving the maximum advertised speeds of the plans.

RELATED STORIES:

Australian Competition and Consumer Commission (ACCC) Chairman Rod Sims said: “All businesses have a responsibility to ensure that claims about the performance of their products or services are accurate. This is particularly important in cases where consumers sign long-term contracts to acquire a service. Telecommunications contracts are typically 12-24 months in duration and this can represent a serious financial commitment.”

A breakdown of the affected customers shows that:

  • 26,497 (56%) of FTTN customers on the 100/40 Mbps plan could not receive 100/40 Mbps. Of those customers, 9,606 could not receive 50/20 Mbps, which was the next speed tier plan down.
  • 6,352 (45%) of FTTN customers on a 50/20 Mbps plan could not receive 50/20 Mbps.
  • 9,342 (2%) of FTTN customers on a 25/5 Mbps plan could not receive 25/5 Mbps.

Another cause of the failure to deliver advertised speeds is the under-purchasing of capacity by telcos from the NBN network. However, the cost of purchasing additional capacity has been cited by several retailers as being unviable – this is one of the major arguments derailing the progress of the rollout.

Share

Featured Articles

GFT & Google Cloud Gen AI to Power Next-Gen Customer Service

Digital transformation firm GFT has announced that, with Google Cloud, it will bring forward a Gen AI tool to help banks support their customer service

Top 100 Women 2024: Ursula Koski, AWS - No.4

Technology Magazine’s Top 100 Women in Technology honours AWS’s Ursula Koski at Number 4 for 2024

Microsoft in Japan: $2.9bn Investment to Boost AI & Cloud

Microsoft has announced it is investing US$2.9bn over the next two years to increase its hyperscale cloud computing and AI infrastructure in Japan

Amazon CEO Andy Jassy: Future of Gen AI to be Built on AWS

IT Procurement

Apple Bringing Spatial Computing to Business With Vision Pro

Digital Transformation

Top 100 Women 2024: Beth Galetti, Amazon - No.3

AI & Machine Learning