The Australian Competition and Consumer Commission today published an Information Paper to assist providers of hybrid fibre-coaxial (HFC) and fibre to the premises (FTTP) broadband internet services in complying with the Competition and Consumer Act 2010.
Internet Service Providers (ISPs) that make 'speed' claims must have a reasonable basis for asserting performance levels are attainable in practice, not just in theory.
"ISPs that under-deliver on their promises and fail to demonstrate a reasonable basis for their claims will be liable to ACCC enforcement action", ACCC chairman Graeme Samuel said.
"The increase in the availability of high-speed broadband services can offer significant benefits to consumers and an opportunity for greater competition between retail ISPs."
"However, for these benefits to be fully realised, ISPs must ensure that they do not market their services in a way that misleads consumers and results in an unfair competitive advantage."
The Information Paper provides guidance to ISPs on the factors to consider when making representations regarding the data transfer rates – or 'speeds' – available to customers acquiring HFC or FTTP internet services. The Paper relates to services provided over the National Broadband Network, as well as services being provided over pre-existing HFC and FTTP networks.
The ACCC will hold seminars at the ACCC's Sydney and Melbourne offices, from 1-2pm on 19 and 21 July 2011 respectively, to engage with industry and other stakeholders on the Information Paper. Representatives in Adelaide, Brisbane, Canberra, Hobart and Perth will be able to attend the seminar on 19 July 2011 via the ACCC's video conferencing facilities.
Any parties wishing to attend these seminars are encouraged to contact Rebecca Larsen on (03) 9290 1939 or email rebecca.larsen@accc.gov.au.
The Information Paper HFC and Optical Fibre Broadband "Speed" Claims and the Competition and Consumer Act 2010 will be available on the ACCC's website. Two previous papers that addressed ADSL and mobile/ wireless broadband internet services are also available on the ACCC website.