More than 11,000 iiNet and Internode customers will be compensated after an investigation found they were paying for NBN speeds they couldn't get.
These are the fourth and fifth enforceable undertakings secured by the
Australian Competition and Consumer Commission (ACCC) in recent months, as the competition watchdog responds to a surge in complaints about the NBN.
The refunds and waivers come after the ACCC's investigation found 8000
iiNet customers and 3000 Internode customers were sold plans with speeds
they couldn't technically receive from 2015 to mid-2017.
The two companies, both subsidiaries of TPG Telecom, conceded they likely
engaged in conduct prohibited under Australian Consumer Law, says Sarah
Court, commissioner at the ACCC.
"iiNet and Internode customers should carefully review any email or letter
from their provider and choose a remedy as quickly as possible," she says.
"The options available to each customer depends on their plan, but many can
move to a lower speed plan and receive a refund, or exit their plan without
Of iiNet's 11,900 customers, 64% couldn't receive the 100/40 Mbps FTTN
speeds they were sold. And 1720 of them couldn't even achieve speeds on the
lower 50/20 Mbps plan.
For Internode, 34% of its 5060 customers couldn't reach the peak 100/40 Mbps
speeds of their plans, while more than a quarter of these customers couldn't reach speeds
half as fast.
iiNet and Internode's undertakings join those secured by the ACCC from
Telstra, TPG and Optus. Combined, the number of customers sold plans with
speeds they couldn't achieve now totals 69,000.