Australian competition regulator ACCC is taking Optus to court after alleging that the operator misled around 20,000 customers about the need to move quickly to the National Broadband Network (NBN).
The ACCC claims that Optus falsely told customers using hybrid fiber coaxial (HFC) network that it planned to shut down HFC earlier than the operator was contractually allowed to cancel the services.
State-owned NBN operator NBN Co arranged to purchase Optus' HFC network in 2012 as part of an A$800 million ($611.7 million) deal to migrate the HFC customers onto the NBN and integrate the HFC network into the NBN's multi-technology mix. But NBN Co was subsequently forced to abandon the use of the Optus HFC network after admitting it was in poor repair and not fit for the purpose.
As well as pressuring HFC customers to migrate to the NBN sooner than they were required to, the ACCC has accused Optus of giving customers the impression that they were required to obtain NBN services from Optus instead of having their choice of NBN provider.
“We are also concerned that Optus cut off some of its customers’ internet services when it had no contractual right to do so. Telephone and internet are essential utilities and it is unacceptable for Optus to treat its customers this way,” ACCC chairman Rod Sims said.
“As the NBN rollout continues throughout Australia, people will be making decisions about which provider to go with. ISPs must not mislead consumers when competing for business. We are keeping a close eye on this sector and will take action where we see wrongdoing.”
This is the second time Optus has found itself in hot water with the ACCC in recent months. Earlier this month the operator agreed to compensate around 8,700 NBN customers https://www.telecomasia.net/content/optus-compensate-nbn-fttn-users as part of an ACCC crackdown on NBN providers selling customers speed plans that the customers' last mile infrastructure is incapable of providing.
Optus is the wholly-owned Australian subsidiary of Singapore's Singtel.