Telcos will face fines for long NBN switch-overs, buck-passing and more

By Jacqui Dent

Last updated 23 July 2018

Telcos will face fines for long NBN switch-overs, buck-passing and more

The Australian Communications and Media Authority (ACMA) has introduced a host of new obligations for telcos migrating customers to the NBN. The new rules will require telcos to:

Check their customer's new NBN service is working after it has been installed by NBN Co
Check their customer's new NBN service is capable of delivering the maximum speed specified in their chosen plan
Offer an interim service or make other acceptable arrangements, which may include an increase in mobile data allowance or credit towards mobile data, for customers where their service is not working and can't be fixed within three days

According to a statement on the ACMA website, the new rules also require telcos to "move swiftly to resolve consumer complaints – drawing in other companies in the NBN service supply chain where necessary and stop the 'buck-passing' of complaints between providers and NBN Co."

In addition, the ACMA will require telcos to make the following disclosures to customers before they sign a contract:

Typical evening speeds customers can expect to receive on the service
Whether customers can keep their phone number if they transfer their phone service to the NBN
What remedies are available if the customer's NBN connection isn't capable of delivering the speed tier specified in their plan

Finally, telcos will no longer be allowed to use the term "up to" in any claim about broadband speed and to provide definitions of NBN speed labels in advertising on their website.

These moves are set to see a big shift in Australians' experience of their switch over to the NBN. ACMA research recently found that one in six Australian households moving to an NBN service was left without a working connection for more than a week, while one in ten households experienced an interruption of more than two weeks.

Meanwhile, comparing NBN services should become even easier once telcos are required to disclose typical evening speeds. Many telcos are already advertising typical evening speeds in line with ACCC guidance, but the new rules should see those disclosures to become mandatory and, we hope, more transparent.

In a move to protect Australians using medical or security alarms that rely on a home phone or internet connection, the new ACMA rules also require telcos to ask customers if they use an alarm and, if so, to advise them to check with their alarm service provider whether it is compatible with their new NBN connection.

All these rules will come into effect on September 21, 2018 and will be enforceable by the ACMA. Telcos in breach will face injunctions and penalties of up to $10 million.