The decision will see sales of 100Mbps connections cease for customers on Telstra’s FTTN, FTTB and FTTC connections, with only FTTP (Fibre to the Premises) and HFC (Hybrid fibre/coax) connections capable of reaching the higher speeds.
The two-tier provision is a direct result of Australia’s multi-technology approach to its National Broadband Network (NBN), which has seen some households connected on ultra-fast speeds, while others remain dependent on satellites.
Telstra’s move is likely to please the Australian Competition and Consumer Commission (ACCC), which has kept a close eye on the actual speeds provided to customers, compared to the speeds advertised.
In the ACCC’s most recent test, Optus came out on top with customers enjoying 90% of the maximum speed for their plan. However, Telstra ranked fifth, despite its services being more expensive than TPG and Exetel, which ranked in joint second place.
Australia is frequently identified as one of the worst countries in the world for broadband connections and speeds. In 2019, data published by M-Lab and Cable.co.uk named Taiwan as the top country for connection speeds, with an average of 85.02Mbps. Meanwhile, Australia ranked 50 of 207 countries due to recorded speeds of 16.36Mbps, and the UK ranked 34, with an average download of 22.37Mbps.