NBN SPEEDS UP

INTERNET speeds over the National Broadband Network could soon improve as retailers are buying more bandwidth, the competition watchdog says.

Providers acquired more of what is called Connectivity Virtual Circuit in September than they did in June, the Australian Competition and Consumer Commission said in its latest report on the NBN.

ACCC chairman Rod Sims said adequate CVC is essential for households and businesses to get the speeds they are promised, and the watchdog is closely monitoring how much CVC is being bought and used.

“This report provides a clear indication of the level of competition developing over the NBN,” ACCC Chairman Rod Sims said.

“Some of the small players are experiencing rapid growth and this shows promise for future competition. Direct connection will allow smaller retail service providers to have more control over their network in terms of how much Connectivity Virtual Circuit ) they provision.”

The report says more CVC is being acquired per user, from 1.09 megabits per second per user in June to 1.11 megabits per second per user in September.

“This is encouraging as pro- visioning adequate CVC is essential if RSPs (Retail Service Providers) are to ensure households and businesses can get the speeds they are promised,” Mr Sims said.

The news came after Optus was the latest telco to offer compensation to customers for slow NBN speeds.

The telecommunications giant admitted yesterday some of its customers may have been overcharged because they were not delivered the National Broadband speeds they were promised.

The development comes a day after Telstra said it would refund 42,000 customers because of their slow internet speeds.

Telstra said it would contact affected customers over the coming weeks.

An Optus spokeswoman confirmed the company was “working with the Australian Competition and Consumer Commission” and had provided the consumer watchdog with detailed information and data it requested.

“We are examining the detail of the announcement by the ACCC, but can confirm that Optus is taking action to provide appropriate remedies to those customers where it has been confirmed that the underlying NBN service cannot deliver the speed they signed up for,” the spokeswoman said.