As part of recent plans changes, Telstra will no longer sell NBN 100 plans to customers connecting to the National Broadband Network via Fibre-to-the-Curb (FTTC), Fibre-to-the-Basement (FTTB), or Fibre-to-the-Node (FTTN) technology types.
This limits Telstra NBN 100 plans to customers with Fibre-to-the-Premise (FTTP) or Hybrid Fibre Coaxial (HFC) connections, marking the first time a major telco has restricted NBN 100 plans to specific fixed line technologies.
Telstra stopped selling NBN 100 plans to customers on non-FTTP and HFC connection types because it can't guarantee speeds.
"We have made a decision to only offer Premium speed (NBN100) on FTTP and HFC for the time being," said a Telstra spokesperson. "The reason for this is because a number of our customers on FTTN/B/C do not have connections that are capable of achieving 100Mbps."
In the latest Measuring Broadband Australia report, the ACCC found that about a quarter of FTTN customers on either a NBN 50 and or NBN 100 plan do not receive anywhere near the speeds they are paying for. In addition, NBN Co expects that 76% of FTTN connections won't be able to achieve NBN 100 speeds by the end of the rollout.
According to the latest NBN corporate plan, about 40% of all NBN connections will be facilitated via FTTN or FTTB connection types (NBN Co doesn't breakout individual numbers for these two). Only 30% of premises will be connected via FTTP and HFC technologies.
It's less clear why Telstra doesn't want to sell NBN 100 plans to FTTB and FTTC customers. Line speeds are much more reliable on both connection types due to a shorter length of copper involved. FTTB NBN connections can comfortably reach speeds of at least 100Mbps, and FTTC NBN connections are designed to be able to hit speeds of 1Gbps eventually.
Telstra has however previously had to compensate around 42,000 customers who were paying for NBN speeds faster than their physical connection was capable of. Optus also compensated around 8,700 customers for the same issue.
The crux of the problem is that an ISP can't test a customer's physical connection until a plan has been purchased. A provider has no idea until if a customer can actually get an NBN 100 plan until they're connected to the network. Providers such as Aussie Broadband have addressed this by sending new customers a welcome email detailing the maximum speeds their connection is capable of, and a recommendation about whether the plan chosen is appropriate for the connection.
Telstra previously had two options for NBN 100 plans: the standalone NBN 100 plan for customers on FTTP or HFC connections, and an NBN 50 plan bundled with a speed boost for everyone else. If you had a Telstra NBN 50 plan and your physical connection to the NBN was fast enough, you were able to pay an extra $30 per month for a speed boost. Telstra no longer offers the speed boost option for NBN 50 customers. Customers who already have a speed boost with Telstra are not affected by these changes.
Telstra says it wants FTTC, FTTB, and FTTN customers to have the best possible experience on its plans and hopes to have a "suitable offer" for them soon.
It's clear that Telstra shouldn't be selling a product it can't fulfil, but its actions further reinforce the systematic inequality of the Coalition's multi-technology mix approach to the NBN. There's a clear divide between "good NBN" and "bad NBN".
Australians who didn't win the technology lottery are connecting to a sub-par network that will lock them out from future improvements like speeds over 100Mbps, assuming those connections can even hit those speeds. Worse, we're now seeing Australia's largest telco prevent them from accessing speeds those connections may be capable of.
This article has been updated to include statements from Telstra (9:30am, 26/02/2020)
Telstra’s statement in this story has been updated as the telco claims to have originally sent through inaccurate information (12:00pm, 26/02/2020)
Alex Choros
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