Consumer watchdog may test broadband speeds
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 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, 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 in a speech 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, and all responded to the concerns.
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 ACCC is considering a formal monitoring arrangement that would install speed‑testing equipment inside volunteer households. The idea, described by ACCC chair Rod Sims, is to use a representative sample of consumers—similar to the system used to measure TV audiences—to continuously monitor what broadband speeds are actually being delivered on the NBN.
The ACCC is concerned that marketers could exaggerate real‑world NBN speeds, and that misleading representations could grow “exponentially.” Rod Sims has warned ISPs the regulator is watching for misleading behaviour because both NBN Co and retail providers share responsibility for speed performance.
Under the proposed plan, volunteer households would host the monitoring equipment. The ACCC wants a representative sample of consumers so the tests reflect real‑world experiences across different homes and setups, allowing the regulator to check individual claims and build broader market transparency.
The ACCC plans to monitor both. In addition to checking how ISPs describe real‑world speeds, the regulator said it would watch NBN Co’s network performance and the representations NBN Co makes to wholesale customers.
Yes. A spokesman confirmed the ACCC recently approached 16 internet service providers to raise concerns about how they described real‑world NBN speed experiences in marketing material, and all 16 responded to those concerns.
The ACCC is fairly close to releasing a consultation paper on the project but says it would need additional government funding to proceed with installing equipment and running a formal monitoring program.
Installing testing equipment in a representative sample of homes would let the ACCC verify advertised speeds, compare claims across providers, and publish clearer information about what is actually delivered and how network performance varies—helping consumers and wholesale customers better understand real‑world NBN speeds.
The ACCC notes delivering higher speeds isn’t just about laying fibre. Equipment at both ends of the connection—the consumer premises and the network side—must be continually upgraded to cater for growing speeds, and that is something the regulator wants to monitor.
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