As NBN rollout looms, regulator to pounce on internet speed claims
The consumer regulator is considering a plan to roll out a "formal monitoring arrangement" involving volunteer households, designed to crack down on misleading speed promises by internet service providers. Rod Sims, chairman of the Australian Competition and Consumer Commission, has previously warned internet service providers the competition regulator would be watching for misleading behaviour about speeds available on the NBN, particularly as both NBN Co and internet providers were responsible for speed performance. But it had been unclear until now how the ACCC would actually monitor speeds, apart from waiting for complaints from individuals or competitor telcos.
Mr Sims outlined a proposal that would be similar to the system used to measure television audiences. "We are giving active consideration to putting in place a formal monitoring arrangement where we might get a representative sample of consumers to allow us to put equipment in so we can monitor what the speeds actually are," he said.
"That would give us a way not only to check on individual claims but also to have more transparency in the market about what is being delivered and how it's being delivered."
The ACCC was "fairly close" to releasing a consultation paper for the project, but would need additional government funding for the project, he added.
Misleading representations about speed could increase "exponentially" on the NBN because marketers could "take advantage of what people perceive the NBN can do", Mr Sims said earlier this year.
A spokesman confirmed the ACCC had recently approached 16 internet service providers raising concerns about the way they described real-world NBN speed experiences in marketing material.
Mr Sims said the ACCC would also monitor NBN Co's network performance and the representations it makes to wholesale customers.
"Some people think you just lay the fibre and off you go, but of course you've got to have the relevant boxes at either end continually upgraded to cater for the growing speeds and, yes that's something we would want to monitor."
Frequently Asked Questions about this Article…
The Australian Competition and Consumer Commission (ACCC) is considering a formal monitoring arrangement to check whether consumers get the speeds they were promised on the NBN. The plan could involve installing speed‑testing equipment in a representative sample of volunteer households to measure real‑world performance and create greater market transparency.
ACCC chair Rod Sims has warned that misleading representations about NBN speeds could grow rapidly as marketers capitalise on perceptions of what the NBN can do. The regulator wants to protect consumers and ensure ISPs and NBN Co are honest about the speeds they deliver.
The ACCC’s idea is similar to television audience panels: put measurement equipment into volunteer households forming a representative sample, then continuously monitor actual speeds. That data would let the ACCC check individual ISP claims and provide broader transparency about delivered performance.
Yes. The ACCC has already approached 16 internet service providers about the way they describe real‑world NBN speed experiences in marketing material, and the proposed monitoring would give the regulator more evidence to act on misleading claims.
Yes. The ACCC intends to monitor NBN Co’s network performance and the representations NBN Co makes to wholesale customers, recognising that both the network operator and retail ISPs share responsibility for speed performance.
The ACCC was close to releasing a consultation paper but said it needs additional government funding to roll out the monitoring project. A consultation process would likely precede any full‑scale implementation.
Yes. Rod Sims noted that it’s not just about laying fibre—relevant equipment at each end of the connection must be continually upgraded to handle growing speeds. The ACCC would want to monitor those end‑point upgrades and other technical factors that affect delivered performance.
For everyday investors, the ACCC’s monitoring could lead to clearer, verified information about real‑world NBN speeds and ISP performance. That increased transparency may affect how companies communicate with customers and could influence reputational and regulatory risk for NBN Co and retail ISPs.
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