Ben Squires
Money & Banking

Optus is cutting off customers without warning

Optus is reportedly cutting the phone and broadband services of cable customers, in a heavy-handed big to shut down the telco’s existing HFC cable network and transition to the National Broadband Network (NBN) in areas that are ready.

A Fairfax Report published on Wednesday delved into the behaviour, suggesting the telco exhibited a “pattern of misinformation” while also using tactics of coercion.

Optus is reportedly telling customers they have 30 days to switch over to a new contract, which is contrary to the NBN’s public 18-month switchover commitment. The telco has reportedly already cut off the services of a number of customers with little or no warning, leaving them without a phone or broadband service for weeks.

Optus representatives have been offering to arrange an NBN connection before the 30-day deadline, in some cases forcing customers into a new 24-month contract, without acknowledging that they have a choice in service providers.

An Optus spokesperson told Fairfax Media, "Optus acknowledges that it is not the government or NBN that is driving Optus' decision to quickly migrate customers to the national broadband network. Our intention is always to ensure customers are able to transition to the NBN in a seamless way, however, we have identified that some customers were recently disconnected and left without service.

“Optus will provide customers with compensation for the loss of their telephone and/or broadband services, and will continue to work with our front line teams to ensure we provide information to customers as they transition to the NBN."

The NBN tried to distance itself from the behaviour, referring to an earlier statement, “Any actions resulting in earlier disconnection of end users is solely at the discretion and responsibility of the Retail Service Provider – it is not an action being taken by NBN nor is NBN involved in any way".

Laurie Patton, Internet Australia board member and former CEO, said this just wasn’t good enough, telling Fairfax Media, “Broadband customers are stuck in this nightmare game of pass the parcel and the buck must stop somewhere.

“NBN should be ultimately responsible for ensuring end user delivery and I have proposed the creation of a universal service delivery obligation, which would grant NBN the power and the responsibility for ensuring that its broadband resellers act appropriately and deliver on their promises.”

What’s your view on this situation? Do you think Optus is behaving inappropriately? Or is it up to the NBN to take more control over the telco’s actions?

Tags:
Finance, Money & Banking, Optus, Internet