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