Greenfields estate network operator CNT Corp has been fined $19,800 by the Australian Competition and Consumer Commission after its wholesale fibre-to-the-premise service was found unable to deliver promised data transfer rates.
According to the ACCC, CNT Corp said it could supply fibre Internet access with 25, 50 and 100 Mbps download speeds at Eden Brook Housing estate in Pakenham, Victoria.
However, CNT Corp's network could not support data transfer rates above 20 Mbps for even a single user due to insufficient backhaul capacity out of the estate.
This meant residents never received the level of Internet performance they paid for.
CNT Corp admitted that its speed claims likely contravened Australian Consumer law and has paid the fines.
The company has also agreed to a court enforceable undertaking to acquire additional backhaul capacity for its Eden Brook network, and also to offer credit vouchers for affected customers.
The ACCC warned it was closely monitoring claims about Internet services performance made by telcos.
“All suppliers of broadband services must make sure they accurately represent the performance of their services,” ACCC chairman Rod Sims said.
“This is a cautionary tale for the telecommunications industry as it transitions to technologies that are capable of delivering faster broadband services.
"If you make claims about the speed of your services, you must ensure that real-world performance matches what is promised.”