Telstra stepped up data rate checks on its internet service after the communications regulator fined it for failing to make required inspections before migrating customers from legacy networks to NBN service.

The Australian Communications and Media Authority (ACMA) found the operator failed to carry out more than 3,800 tests to confirm the speed of a customer’s new NBN connection could match that specified in a contract.

Telstra reported the failure to the ACMA, claiming they were caused by IT system issues in 2022 and 2023.

ACMA chair Nerida O’Loughlin noted consumers are entitled to expect internet speeds meet those advertised in their NBN plans.

Telstra paid an AUD394,380 ($245,984) fine. The operator told the regulator it initiated an end-to-end review of its maximum speed testing processes and taken steps to address the system issues.

The investigation also found the operator failed to inform customers of underperforming NBN speeds on 34 occasions following tests and charged 157 customers for an NBN service before notifying them about the slow speeds.