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TPG to refund 8,000 customers over slow FTTN speeds

TPG is now the third ISP to refund NBN customers after promising more than it could deliver over fibre to the node technology.

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TPG

TPG advertised its NBN plans as "seriously fast internet." But now the ISP will be forced to compensate nearly 8,000 of its customers after it failed to deliver adequate speeds.

The ACCC today announced that TPG has agreed to compensate customers for misleading them over the speeds it could deliver over fibre to the node (FTTN).

The refunds apply to customers who bought NBN plans between 1 September 2015 and 30 June 2017 and who couldn't access the speeds they'd paid for. The majority of these customers were on 100/40Mbps speed plans.

The ACCC revealed that 7,509 customers (62 percent of FTTN users) who bought the top tier 100Mbps plan couldn't achieve the speeds promised. A further 411 customers couldn't even achieve download speeds of 25Mbps.

"The technical limitations of NBN's fibre to the node technology meant many TPG customers could not reach the advertised 100/40 speeds they paid for. Some couldn't even get half those advertised speeds," said ACCC Chairman Rod Sims.

"TPG charged customers higher prices for the promise of faster speeds, misleading many customers into paying a premium price for a service they could not get."

TPG is the third ISP in recent months to be hit with action by the ACCC over inadequate NBN speeds on FTTN technology. In November, Telstra offered to refund 42,000 of its customers for under-delivering on the NBN, while Optus offered compensation to 8,700 customers at the start of this month.

Affected TPG customers will be contacted via email or letter by 2 March, 2018.

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