Telstra to compensate 42,000 customers for slow NBN speeds

telstraTelstra has offered to compensate around 42,000 customers who experienced slow National Broadband Network (NBN) speeds.

The telco has admitted it may have engaged in misleading or deceptive conduct and made false or misleading representations, in breach of the Australian Consumer Law.

Over the last two years, Telstra mentioned in its NBN advertising it could provide download speeds of up to 100 megabits per second (Mbps), and maximum upload speeds of 40 Mbps.

After investigating this claim, the Australian Competition and Consumer Commission (ACCC) concluded many customers were not receiving the high speeds they had paid for.

The corporate regulator said these maximum speeds “could not be achieved in real-world conditions”, due to the limitations of customers’ fibre to the node (FTTN) and fibre to the building (FTTB) internet connections.

“Our investigation revealed many of Telstra’s FTTN and FTTB customers could not receive the maximum speed of their plan,” said ACCC chairman Rod Sims.

The ACCC found that 56 per cent of FTTN customers (26,497 people) on the top 100/40 Mbps plan were unable to achieve those speed levels. Within that category, 9,606 customers could not even reach half of that speed.

Furthermore, 45 per cent of FTTN customers on the 50/20 Mbps plan could not benefit from that full speed.

Telstra has provided a court-enforceable to the ACCC regarding the remedies it will provide affected customers.

In addition to refunds, Telstra will allow them to change their internet plans, or leave their contracts without paying a fee.