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Optus, TPG Repaying Millions To Customers After False Speed Promises

Optus and TPG have issued refunds of around $4.4 million and $2.1 million, respectively, for promising maximum internet speeds they could not delivery.

Tens of thousands of customers were signed up to internet plans with maximum speeds that were not attainable on the NBN infrastructure available to them.

Last July, Optus self-reported that over a two-year period, it had “failed to inform more than 34,000 customers that they were not receiving the level of service they had purchased.” Its mea culpa came a month after the ACMA issued Telstra with a remedial direction for similar issues.

In October, TPG also advised the ACMA it had failed to notify more than 4,400 customers of their slower speeds.

ACMA requires that telcos “verify maximum internet speeds when migrating customers to the NBN and notify them when speeds cannot meet those that were originally advertised to them.”

“Optus and TPG were charging these people for internet speeds they could not get,” ACMA Chair Nerida O’Loughlin said.

“These customers were left in the dark and denied the option to move to a cheaper contract or walk away.

“The scale of service failure by these companies is significant. Our actions will ensure the top three telcos are more vigilant delivering the internet service their customers expect and have paid for.”

The ACMA can commence proceedings in the Federal Court if either company fails to follow through with the repayments.


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