Broadband Speed Compensation

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Broadband, just like any other service in New Zealand, is covered by a suite of different protection laws and institutions that enforce those protections on different internet service providers and their customers.

Hence, any false or misleading representations displayed as a marketing strategy by an internet service provider regarding the broadband speeds, the time of installation, or any other aspect of the broadband services they provide can result in compensation.

In this article, you'll find out everything you should know about your customer rights as a broadband service consumer, what to do in case you want compensation for the poor-quality services you received, and in what cases you can even receive broadband speed compensation from your service provider.

What is Broadband Speed and How is it Measured?

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Broadband speed measures how quickly you can download and upload information to the web. Usually, the average download speed is higher than the average upload speed.

The speed is measured in megabits per second (Mbits/s or Mbps). Usually, when you sign the agreement for getting broadband services, the contract stipulates the maximum upload speeds and the maximum download speeds for the price you pay.

That's when the compensation comes into play. If the factual maximum speed is lower than the advertised maximum download speeds and upload speeds, you can flag the misleading or deceptive conduct of your service provider and get compensation for it.

What Can I Get Compensation For in New Zealand?

Besides broadband speeds, you can get compensation for a lot of different things tied to your internet service provider. Essentially, you can get compensated for every breach in the contract you had with the entity that provides internet services.

For example, delays are one of the most common things to encounter when dealing with compensation. If your internet service has stopped working and the company hasn't repaired it in two weeks (or the period stipulated in the contract) you can get compensation.

Also, if an engineer doesn't show up to a scheduled appointment, or it is cancelled within less than 24 hours, you can get compensated by the company.

Be mindful, however, that compensation also works the other way around. If you're the one not following the stipulations in your contract (ex. you haven't been paying your service provider in a long time), you can face a lawsuit and pay compensation.

Can I Get a Compensation for Slow Internet?

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Yes. If the broadband services are not equal to the advertised maximum download speeds and the typical minimum speeds are much lower than those stipulated in the contract, you can and even must report it.

You should also know that, in New Zealand, there is an industry guidance that makes internet providers advertise the correct speed and comply with extensive marketing rules.

However, if you're paying for internet that's slower than advertised and the provider doesn't do anything about it, you can file a complaint with customer protection.

Can I Be Compensated as a Business?

The interesting part about the internet speed compensation comes when we're talking about businesses that are heavily relied on web connection.

If you have a business that heavily relies on an internet connection to provide services or produce something, you can and should talk about compensation in case you don't receive the right service.

Unnanounced Broadband Services Shortage

Usually, when broadband service providers want to perform some technical work on their lines, they must inform all their customers about it and only after that stop the distribution of service.

If you were not announced of a possible stoppage in the internet emission and it directly affected your work as a company, you can get compensation for that by filing a lawsuit against your internet provider.

However, if the provider announced technical works in advance or talked to you about possible malfunctions, you won't be able to get compensation for the work you couldn't do.

False Advertised Speed

If your business relies completely on a given speed and the internet provider made false or misleading representations about the speed plan you bought, you can sue the company for that.

For example, imagine you have a digital agency with nine employees that need 100 Mbps to comfortably work and do their job properly. However, the internet you bought can only give 80% of what your employees need. They can't do their work properly and you lose clients and revenue.

This is an excellent motive for you to sue the company that provides you with internet services and get compensation for all the lost clients and revenue. The tricky part here is to prove that the low-speed plan was the crucial factor.

How to File a Complaint for Broadband Speed?
 

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You need to talk with a representative of the company you buy your internet from. In most cases, the problem is decided at this level. Just explain what is the problem, talk about the contract you signed, and give them all the information they'll need from you. Eventually, in a day or two, they will return your call, express their regrets, and dispatch the necessary resources to fix the problem.

If they continue delivering poor-quality services, you can go further and file a complaint with the Telecommunications Dispute Resolution(TDR). Before filing a complaint with them, read your contract thoroughly. Sometimes, you can mistake the speed you signed for, so a complaint would be useless.

However, if you're positive about the contract, you should gather all the information and proof you can. These can be bank statements, bills, internet speed test results, and more. All this paper will help you prove your point.

Then, decide what outcome you want to achieve and call the institution. Be concise, explain the problem, and stick to the facts. This will help you solve the problem faster and get your compensation or at least the services you pay for.

If you're still dissatisfied with the results, you can file a complaint addressed to the Disputes Tribunal or the Privacy Commissioner. For more information, you can visit this link or contact a lawyer.

Frequently Asked Questions

How Long Does it Take to Get Compensation?

It depends on what type of compensation you get. If you get compensation for small things like delays, you will probably get the compensation instantly.

Also, you will be instantly compensated when you file a complaint with the service provider itself, as they tend to regulate the problems as fast as they can to mitigate the risk of a lawsuit.

However, if the provider denies the problem and you have to go further to the TDR or the Disputes Tribunal, it can take months.

What Types of Complaints Can’t the TDR Investigate?

The TDR can't investigate complaints against telecommunications providers who are not members of the TDR scheme, which is obvious.

Also, they can't investigate complaints that are over $15000 and they can't deal with corporate customers. Therefore, if you have a business that has problems with speed, you should directly go to court or settle the case with the provider.

How Will the Compensation be Paid?

Usually, compensation will be a credit on your bill. This is the easiest way for a p broadband provider to settle the problem. However, you can also opt for alternatives like cash, transfers, or any other financial transactions.

In the case of a business dispute or a lawsuit, the company won't be able to pay you in credit on your bill. It will most probably be a wire transfer, so if you don't have a bank account, you should get one.

Wrapping Up

In a nutshell, internet speed compensation is just a form of money settlement used by companies to cover their false advertisements.

Now, fewer internet providers are plagued by these problems, as it becomes easier for them to provide maximum-speed internet without a lot of investments and financial obligations. However, still check out your internet speeds occasionally. Who knows, maybe you'll be the next to get some cash or free credit on your bill.