Telcos compensate NBN customers

Simone Ziaziaris
(Australian Associated Press)

TPG Internet will compensate nearly 8,000 customers after failing to provide the fast national broadband network speeds consumers were paying for.

TPG admits it likely contravened the Australian Consumer Law between September 1, 2015 and June 30, 2017, by promoting and offering a range of speed plans with maximum NBN speeds that could not be delivered.

The Australian Competition and Consumer Commission alleges TPG charged customers higher prices with the promise of faster speeds, misleading many into paying a premium for a service they could not get.

ACCC chairman Rod Sims said the technical limitations of NBN’s fibre to the node (FTTN) meant many TPG customers could not reach the advertised speeds they paid for.

“Some couldn’t even get half those advertised speeds,” Mr Sims said.

The telco is the third major internet provider to come forward in recent weeks after a consumer watchdog investigation, which also found that many Telstra and Optus customers could not receive the maximum speed of their NBN plan, or even a lower-speed plan.

Telstra has offered to compensate 42,000 customers for slow NBN speeds while Optus will offer remedies to more than 8,700 of its customer who were misled about unachievable speeds on certain plans.

Affected TPG customers could choose to move to a lower tier speed plan with a refund, or exit their plan and receive a refund, the ACCC said on Wednesday.

TPG will contact affected customers by March 2, and inform customers of the maximum speed their connection can achieve.


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