Home > Brands > NBN Stuff Up Could Cost iiNet $10 Million

An NBN stuff up by TPG owned iiNet could cost the internet service provider $10 million after an investigation revealed they failed to minimise disruption to phone and internet connections during NBN migration.

Conducted by the Australian Communications and Media Authority (ACMA) the investigation discovered that iiNet Limited had breached the Telecommunications Act and the Telecommunications Service Provider (NBN Service Migration) Determination after it was found one customer was left without internet for more than three weeks while transitioning to the NBN.

As a result, iiNet must now conduct its own independent audit of its systems, which if it fails to comply will result in ACMA seeking court proceedings for remedies such as injunctions or civil penalties of up to $10 million.

ACMA Chair Nerida O’Loughlin has labelled iiNet’s conduct as unacceptable, falling ‘short of what consumers should be able to expect from their telco providers’.

Nerida explains that under ACMA rules, ‘iiNet should have offered the customer an interim service while the issue was being fixed’.

‘This didn’t happen’.

Unfortunately, it appears to be happening to more than just iiNet customers with ACMA research discovering that one in six households were left without a connection for longer than a week, with one in ten households for more than two weeks.

ACMA regularly conducts investigations into telecommunication providers, gathering information from stakeholders, conducting audits and taking action where warranted.

As of the writing of this article, eleven service providers have been found to have breached telecommunication law, with a summary published each quarter of action taken by ACMA to protect consumers.

In June, Seven telcos were fined a total of $88,200 for failing to provide adequate information about their NBN plans on their websites.

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