Compensation

[Andybh]

I received an email about Optus mislead us in regards to speed and offered $90 compensation if we moved to a lower plan. What the hell Optus? You admitted your guilt so why do we have to move to a lower plan to receive this compensation? This should be paid regardless what plan we are on. Optus can you please explain your actions?

[SamSam]

Assuming this is to do with your NBN right? I've heard they aren't doing this in the most ethical way but what SHOULD happen is they proactively contact you (which they have), advise of how they mislead you (which they have), advise of the compensation you're entitled to (which they have) and provide you with your options moving forward (which they HAVEN'T). 

Your options should be that you can stay on your current plan acknowledging you can't actually achieve the speeds you'd be paying for and therefor accepting the fact you're paying for more then you'll get or move to a new plan that provides the speeds you can actually achieve. I'm not too sure but I believe a third option of cancelling everything without penalty should also be made available. 

No matter the option you choose though, Optus have to pay you the compensation as far as I'm aware. 

[petergdownload]

@SamSam is correct. The letter should have provided several options. In all cases the compensation is still paid.

Regards

Peter Gillespie

[Andybh]

Hi there, We are writing to inform you that we have checked your National Broadband Network (NBN) connection and found that you cannot receive the internet speeds you were promised. We have entered into an undertaking with the Australian Competition and Consumer Commission (ACCC) and admit we likely breached the Australian Consumer Law. As a result, we are offering you a choice of several options below including compensation of $90.00. You are currently on a $80 plan and you received a speed pack. This means that you were promised internet speeds of up to 50/20. The maximum speed you can receive is 49 Mbps download and 19 Mbps upload. This means that you were promised speeds of up to 50 Mbps download and 20 Mbps upload when the fastest speeds you can actually receive are 49 Mbps download and 19 Mpbs upload.

Your options Because you can't receive the speeds you were promised, you can choose between the following options: Option 1 - Remove your speed pack and receive compensation You can choose to remove your speed pack and move to the base speed of your $80 plan, which includes maximum speeds of 25 Mbps download and 5 Mbps upload. If you select this option, you will receive compensation of $90.00 because you were promised speeds that you could not receive. If you choose this option, your connection will be capable of supporting the maximum speeds of your plan. Option 2 - Exit your contract without cost and receive compensation You can choose to exit your Optus contract without cost. We will not charge you any early termination charges to exit your contract. You will receive compensation of $90.00 because you were promised speeds that you could not receive. Option 3 - Remain on your current plan with no compensation You can choose to remain on your current plan with your current speed pack. We will not provide you with compensation and your contract will continue. You should know that you will not receive the full benefit from your plan and speed pack because your NBN connection cannot provide the speeds you were promised.

About your NBN connection Your premises are connected to the internet using the NBN's fibre-to-the-node technology. This means that your NBN connection is made up of two parts: (1) optic fibre to a nearby box (this is the 'node'), and (2) copper wire from the node to your premises. The maximum speed that can be delivered to your premises is affected by several factors, including the distance and quality of the copper wire between your premises and the node, electrical interference, and the cabling in your premises.

[SamSam]

Hmmm I just can't see how that last one is right. Either way though, I figure you have 3 choices.

1. Beat them at their own game and take option 3 and as soon as the credit is applied, re-add your speed pack (note that while you can't get your full speed you're 1Mbps away so you're pretty much getting it)

2. Call Optus and argue your case

3. Go to the TIO as the ACCC says here although it's always recommended for you to contact Optus first - https://www.tio.com.au/publications/news/accc-undertakings-relating-to-nbn-speeds

[petergdownload]

Ok I see. FYI Optus is being made to do this because of statutory law (Which the ACCC have enforced.)

There's no law here against selling a bad product. Only you being mislead and paying more than you would of had you known. 

So now you know and you're being asked to make a choice (The choice you should have been given back at the beginning). If your choice now is to keep paying over the odds for a bad product then its reasonable to assume that would have been your choice back then to. In which case you can't claim compensation.

As @SamSam says, the 50Mbps tier would seem to match well anyway, so I'd drop your tier, grab the compensation and save $20 a month on the ongoing costs. If you really want to you can always go up to 100Mbps again later on (although you'll be warned upfront you can only get 50Mbps)

Regards

Peter Gillespie