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Telstra Fined $12 Million for Secretly Slowing Internet Speeds of Nearly 9,000 Customers

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Australia’s largest telecommunications company, Telstra, has been ordered to pay A$18 million (about $11.9 million) after a court found it misled thousands of customers by reducing their internet speeds without informing them, the Australian Competition and Consumer Commission (ACCC) announced on Friday.

According to the ACCC, Telstra migrated 8,897 customers from its low-cost brand Belong to a plan with half the original upload speed between October and November 2020, without any notification or consent. This left users unknowingly paying for a downgraded service.

“Telstra’s failure to inform customers that their broadband service had been changed denied them the opportunity to decide whether the changed service was suitable for their needs,” said ACCC Commissioner Anna Brakey. The regulator emphasized that customers deserve transparency and control over the quality of the services they pay for.

Beyond the fine, Telstra has committed to compensating affected customers, offering A$15 credits or refunds for every month they were on the reduced-speed plan. A Telstra spokesperson told Reuters that the company accepted the court’s decision and was finalizing remediation efforts.

The ruling adds to growing regulatory scrutiny of Australia’s telecom sector, particularly after Optus—one of Telstra’s main competitors—suffered two emergency call outages last month, one of which was linked to four deaths.

On the market, Telstra shares fell 0.7% following the announcement, while the broader Australian benchmark index (.AXJO) rose 0.5%.

The case underscores how digital infrastructure providers are increasingly being held accountable for consumer transparency and service integrity, as Australia tightens oversight over its critical communications networks.

Australia’s Teen Social Media Ban Praised at UN

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Australian Prime Minister Anthony Albanese promoted his government’s world-first ban on social media for teens under 16 during an event in New York, calling the move a necessary step to address the “constantly evolving” risks digital platforms pose for children.

The law, which takes effect in December, makes Australia the first country to prohibit those under 16 from creating social media accounts. Instead of blanket age verification, the government wants platforms to use artificial intelligence and behavioral data to estimate user ages.

“It isn’t foolproof, but it is a crucial step in the right direction,” Albanese said at the Protecting Children in the Digital Age event on the sidelines of the UN General Assembly.

European Commission President Ursula von der Leyen praised the measure, saying she was “inspired by Australia’s example” and that Europe would be “watching and learning” as it considers its own policies.

Australia’s center-left government introduced the law citing research linking excessive social media use among young teens to mental health issues, bullying, misinformation, and harmful body image content. The minimum age for accounts will rise from 13 to 16.

Albanese framed the law as both sensible and overdue, saying it would give teens “three more years of being shaped by real-life experience, not algorithms.”

Singtel Apologizes After Deadly Optus Outage in Australia

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Singapore Telecommunications (Singtel), the parent company of Australia’s second-largest telecom operator Optus, issued an apology on Wednesday after a major network outage disrupted emergency calls and has been linked to four deaths.

Singtel Group CEO Yuen Kuan Moon said the company is working with the Optus board to investigate last week’s 13-hour outage and to ensure such failures do not happen again. “We are deeply sorry to learn about the network incident at our Optus subsidiary that has impacted triple-0 calls, and to hear that customers could not connect to emergency services when they most needed them,” he said in a statement.

Optus revealed that the disruption stemmed from a network firewall upgrade gone wrong, leaving about 600 customers—some in remote areas—unable to make phone calls, including emergency calls.

Public anger over the outage has intensified, with Australian Prime Minister Anthony Albanese calling the incident “completely unacceptable.”

Optus CEO Stephen Rue admitted that procedures were not followed during the incident and said preliminary checks suggested human error may have been a factor.

Kerry Schott, a non-executive director at AGL Energy, will lead an independent review into the failure. Rue said the review will focus on the technical causes, internal processes, and how triple-0 calls were managed during the outage.

The review is expected to be completed by the end of the year, with results first reported to the Optus board and then made public.