NBN hard sell gets Optus in strife

THE consumer watchdog has launched Federal Court proceedings against Optus, alleging the telco pressured 20,000 customers to move to the national broadband network sooner than required.

In March there were reports from consumers and in media that the Singaporean-owned telco was writing to customers saying it would disconnect their existing services in as little as 30 days as the NBN was coming to their area.

The time frames were earlier than Optus was contractually allowed to cancel their services, the Australian Competition and Consumer Commission said yesterday.

ACCC chairman Rod Sims said the misrepresentations, which allegedly occurred between October 2015 and September 2016, put pressure on customers to move to the NBN sooner than necessary.

“This is particularly concerning as Optus received a significant financial payment from NBN Co for each customer that moved from its cable network to the NBN,” Mr Sims said.

Optus receives a payment from NBN Co for every customer who migrates from its existing cable network.

In 2011, NBN Co predicted Optus would receive a post-tax net value of $800 million from customers moving to the NBN.

The ACCC also alleges Optus misled some of its customers by creating the im- pression they were required to buy services from Optus when they could have chosen any internet service provider.

It is concerned Optus cut off some of its customers’ internet services when it had no contractual right to do so.

The ACCC is seeking declarations, injunctions, pecuniary penalties, a publication order, compliance orders and costs.

Optus has admitted to providing some customers with insufficient notice of their options to migrate to the NBN.