Telephone and internet service provider CNT Corp, has been slapped with a $19,800 fine for its inadequate backhauling services which failed to deliver broadband speeds the company had initially advertised. The Australian Competition and Consumer Commission (ACCC) - an agency which monitors fair-trade practices in the country, and is concerned with consumer protection and welfare - fined the company for falsely promoting that it could deliver speeds of up to 1000 mbps to with its FTTP broadband services.
Based on an investigation by the ACCC, CNT Corp’s backhaul capacity could hardly support 20 mbps for a single user. This meant the broadband customers relying on the latter’s services were paying for speeds that they were not even getting.
The chairperson of the ACCC said the incident with CNT Corp should serve as a warning to various telecom operators not to advertise services they cannot deliver. With demand for faster services increasing with the surge of smartphone users and the rise of other powerful computing devices, operators right and left have been advertising “high-speed” broadband.
The ACCC is making sure all those offering such services comply to stringent regulations. CNT Corp, on the other hand, has been given 3 infringement notices, and must upgrade its present backhaul networks. They’ve also been advised to give gift vouchers to customers affected by their broadband services.
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