SPEED DEMONS: People need to know their desired internet connection speeds and ask questions.
SPEED DEMONS: People need to know their desired internet connection speeds and ask questions. Supplied

42,000 Telstra customers to get refund for slow NBN

TELSTRA is offering to pay back about 42,000 customers some of their costs after conceding the NBN speed plans were spruiked as having maximum speeds that could not be reached in the real world.

The telco told customers who signed up for its "Super Fast Speed Boost” plan to expect top speeds of up to 1000 megabits a second for downloads and 40 Mbps for uploading.

But most customers' internet providers were unable to reach that speed.

The refunds will be targeted at customers who signed up for various plans through Telstra and its Belong brands.

The ACCC lashed the telco in a statement yesterday, saying not only could NBN customers not reach the top end of those high speed plans, but users could often not reach the top end of lower-speed plans.

"In essence, people were paying more to get higher speeds that they just weren't able to get,” ACCC chairman Rod Sims said.

"All businesses have a responsibility to ensure that claims about the performance of their products or services are accurate.

The issue affected a range of customers across a number of different tiered speed plans, including:

26,497 (56%) of NBN 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.

6352 (45%) of NBN customers on a 50/20 Mbps plan could not receive 50/20 Mbps.

9342 (2%) of NBN customers on a 25/5 Mbps plan could not receive 25/5 Mbps.

Mr Sims said the second issue was where speed could be delivered technically but the customer's provider had not bought enough capacity from NBN Co to make it happen, particularly at the busiest points in the day.

"To address this second problem of under provisioning, the ACCC is urging all ISPs to advertise the typical speeds customers can expect in the busy evening period between 7pm and 11pm,” he said.

Last month, the NewsMail reported Bundaberg had the third highest number of complaints in the state in the past financial year with 562, behind Toowoomba (768) and Cairns (607).



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