The Australian Competition and Consumer Commission (ACCC) has been asked by the Shadow Minister for Information Technology, Senator Lundy, to formally investigate the conduct and behaviour of Telstra in relation to their use of narrowband pair gain technology.
“I have asked the ACCC to investigate whether these actions by Telstra may be in breach of Section 52 and 53 of the Trade Practices Act 1974,” Senator Lundy said.
Senator Lundy established a website to survey people’s experiences with Telstra and the impact of narrowband pair gains on their internet connection speeds and has received over 1100 individual insights, mostly scathing of Telstra. The survey is located at: http://www.katelundy.com.au/pairgainvictims.htm
“When Telstra customers pay for a ‘new line’ they think they are getting a separate copper wire. Consumers reasonably interpret a ‘line’ as a physical description, not a description of a service, like another dial tone. However, even though a separate piece of copper line might be installed from the house, if a pair gain is used at some point between there and the exchange, this copper pair and one or more other copper pairs bottleneck, having the effect of reducing internet connection speeds.
“There are, apparently, many different types of pair gain, resulting in varying effects. Nevertheless, it is always deleterious to the Internet connection speed. And yet Telstra do not disclose this to consumers, even when the request for a new line is expressly for an Internet (data) connection.
“It is no wonder that Telstra’s customers are angry and frustrated. They think they are buying a line that will improve their service, and then they get an inferior service, with no explanation or power to make informed choices about the detrimental impact on Internet connection speeds.”
“That’s why it is time for the ACCC to have a look at Telstra’s market behaviour in relation to pair gains,” Senator Lundy concluded. Click here to view the submission.
Media contact: Simon Tatz on 02 6277 3334 or 0418 488 295
