ACCC may act on speed claims and tell the NBN truth

The NBN has been selling packages to retailers based on 25Mbs, 50Mbs or the "super-fast" 100Mbs.

Most retailers then use those speeds to sell plans to consumers. Residents who have purchased NBN plans in Young have complained their download and upload speeds are significantly less than what they are paying for. 

But selling packages to homes which have NBN connections to the “node”, which connects the last leg of the connection to homes using existing ageing Telstra copper lines means in many cases the connection can never handle promised speeds.

Labor spokesman for regional communications Stephen Jones has sought legal clarity from the ACCC on the issue.

"I am absolutely frustrated consumers are being sold products that can't be delivered," he said.

"The NBN know if your property is a certain distance from the node that you won't be able to get the top speeds and some of them you won't even be able to get the lower ends speeds, they know that information."

"The NBN knows there are limitations in the network, they know it is due to the old copper network, so they should tell the retailers and the retailers should tell the customers, it's pretty bloody simple. The truth is that Malcolm Turnbull and his National Party mates like Fiona Nash and Michael McCormack have buggered the NBN up, I can't turn the clock back but what we can do is make sure customers aren't getting ripped off.”

ACCC chairman Rod Sims said the regulator was looking to rid the market of claims from telcos advertising misleading “up to” speeds when actual speeds were far lower.

"The regulator is undertaking a process of engagement with retailers and an enforcement approach may come later if needed," he said.

Senator Fiona Nash said she has met with the NBN Co to talk about rural issues.