Optus hit by ACCC case on "supersonic" broadband

 

Federal Court complaint fast-tracked.

The competition watchdog has filed a case against ISP Optus over claims of "supersonic" broadband in advertisements for its newly-upgraded hybrid fibre coaxial (HFC) cable service.

It was the second case in four months to be filed against Optus over claims in its broadband advertising.

An Optus spokesman "acknowledged the claims made by the ACCC" and said the carrier looked forward to "working with the ACCC to resolve any concerns they may have.

"Optus goes to great lengths to offer the best products and services to our customers and to explain the value of those offers clearly," the spokesman told iTnews.

The Australian Competition and Consumer Commission said that the Federal Court had fast-tracked a hearing date for next week.

"Under these [supersonic] plans, a customer pays a specified monthly sum and receives a specified data allowance for that month divided into peak and off-peak periods," the ACCC said of its complaint.

"However, once the customer exceeds the peak data allowance, the internet connection is limited to a speed of 64 Kbps.

"The ACCC alleges that Optus did not sufficiently or clearly disclose, and in some cases did not disclose at all, these qualifications."

The commission said it would seek injunctions, "civil penalties, corrective advertising and costs" from Optus.

Optus last month changed advertisements for its "unlimited" internet and phone bundles in response to a separate case filed against it in June.

The telco had previously marketed an "unlimited home phone and broadband bundle" that included 50 GB of "superfast" broadband that was then throttled to a speed of 256 Kbps.

It was seeking a Federal Court declaration in that case on the meaning of the term "unlimited" with respect to broadband plans for future advertisements.

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Optus hit by ACCC case on "supersonic" broadband
"A lot of customers are going to be disappointed in the speed increase because the Netgear CVG824G modem/router supplied by Optus is only capable of 30Mbps throughput and of course any G wireless ..."
By Bonester
 
Tags
 
 
Comments: 3
RB
Sep 8, 2010 3:48 PM
Is this really a matter worth "fast tracking" through the Federal Court?

The article doesn't indicate Optus has done anything wrong. If they advertise 50G and then shape beyond that:
a) They are not charging the customer more that the agreed fee; and
b) The customer does not get cut-off ... hence nothing really misleading there.

So ... exactly what is the ACCC complaining about?
That Optus didn't say they'd leave customers connected and still allow them to use the service AFTER they exceed their contracted quota for a fixed fee?

AND this is a Federal Court matter??
deteego
Sep 8, 2010 3:58 PM
Actually it is a Federal Court matter, saying you provide unlimited broadband when its not unlimited is intentionally lying to lure in more customers, in the same way this is, and its a matter for the ACCC to take to the court
Bonester
Sep 8, 2010 5:22 PM
A lot of customers are going to be disappointed in the speed increase because the Netgear CVG824G modem/router supplied by Optus is only capable of 30Mbps throughput and of course any G wireless device will limit the speed too.
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