Telstra Limited (Telstra) has paid a $394,380 penalty for failing to make required internet line speed checks while migrating customers from legacy networks to the NBN.
An Australian Communications and Media Authority (ACMA) investigation found Telstra failed to undertake more than 3,800 tests to confirm whether the speed of a customer’s new NBN connection could provide the speed specified in the contracted plan.
Telstra had self-reported these failings to the ACMA, which were caused by IT system issues from early 2022 to the end of 2023.
Under NBN migration rules, when a telco connects a new NBN service which still partially relies on the copper network, such as fibre to the curb or node connections, it must undertake maximum attainable speed testing within 20 working days.
ACMA Chair Nerida O’Loughlin said consumers were entitled to expect internet speeds to be able to meet those advertised in their NBN plans.
“Maximum speed testing of new NBN services remains important, because customers should be getting what they’re paying for,” Ms O’Loughlin said.
“These are some of the last services to be migrated across from the old copper network to the NBN, so there are no excuses for Telstra not to get it right.”
Where testing shows connection speeds cannot meet those advertised in a customer’s plan, telcos must notify the customer within five working days and let them know they are entitled to move to a lower tier plan at a lower price or exit the contract without cost.
The investigation also found Telstra failed to notify a customer of underperforming NBN speeds on 34 occasions after testing had been carried out and charged 157 customers for an NBN service before notifying them about the slow speeds. Telstra also experienced system issues resulting in delayed refunds on 12 occasions to customers who had elected to downgrade or disconnect their plan.
“Telstra’s customers agreed to accept a refund and were then left in the lurch due to its internal errors,” Ms O’Loughlin said.
“Too often we see telcos’ internal systems and processes being blamed for bad consumer outcomes. Telcos need to invest in and oversee their internal systems so that they comply with the rules.”
Telstra advised that it has undertaken an end-to-end review of its maximum speed testing processes and taken action to address the identified system issues.
