Telstra failed to check the maximum speeds of 180,000 Telstra or Belong services on the NBN that had moved up to higher-speed plans.
The Australian Competition and Consumer Commission (ACCC) revealed that the telco didn't offer options to address slow speeds either, like exiting contracts or receiving refunds.
Telstra has since begun contacting affected customers and issuing refunds for customers paying for the higher speeds but not receiving them. Those not receiving any benefit from the higher-speed tier plans will also be moved to lower-speed plans.
Telstra is required to check customers’ broadband speeds if they were connected to the NBN via FTTN or FTTB technology as part of a 2017 court-enforceable undertaking. The ACCC also accepted similar arrangements from Optus, TPG (including iiNet and Internode) and Vocus (through Dodo iPrimus and Commander).
“We are looking closely at other telcos who gave us similar undertakings to ensure they are checking speeds and providing options to consumers not getting the maximum speeds as promised,” ACCC chair Rod Sims said.
In November 2017, Telstra agreed to compensate some 42,000 customers when the advertised maximum speeds of its NBN plans were not achieved in real-world conditions.