First report on broadband speeds positive, close to maximum

First report on broadband speeds positive, close to maximum

The Australian Competition and Consumer Commission recently released the first results from its broadband speed testing program, which showed that NBN broadband services from iiNet, Optus, Telstra and TPG are now delivering between 80 and just over 90 per cent of the maximum plan speeds in the busy evening hours.

The report, part of the ACCC’s Measuring Broadband Australia program, found that these busy-hour speeds — between 7pm and 11pm — are now only marginally below typical speeds at other times.

ACCC chairman Rod Sims said that these first test results are better than expected.

“[They] indicate the majority of internet service providers are now delivering very close to their maximum plan speeds,” the chairman said.

But the report also found that 5 per cent of services tested operated at less than 50 per cent of their maximum plan speeds.

“The results for some types of services are still lower than we would like, but the overall results go against the current wisdom that the majority of consumers and businesses are having issues with NBN speeds,” Mr Sims said.

“The relatively high average speeds during peak periods indicate to us that retailers are now providing enough network capacity to meet demand in peak usage periods, including on the top-speed plans.”

Mr Sims added that the results reflect significant and recent changes in the market.

“Particularly the recent discounting by NBN Co of capacity charges and consequent take-up of more CVC by retailers. They likely also reflect the effect of our speed advertising guidance and anticipation that our testing was soon to begin.

“It is highly likely that, just a few months ago, these results would not have been anywhere near as good.”

Testing of 25, 50 and 100 Mbps plans and ADSL services took place in February and March 2018 and involved 400 NBN and ADSL services supplied by over 10 ISPs, reflecting 61,000 individual download speed tests.

First report on broadband speeds positive, close to maximum
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