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iiNet blames Telstra for slow Netflix connection speeds

Date

Jared Lynch and Max Mason

Slow internet connection speeds have been blamed on Telstra's use of copper, something that will be alleviated when the network is upgraded to fibre optic connections.

Slow internet connection speeds have been blamed on Telstra's use of copper, something that will be alleviated when the network is upgraded to fibre optic connections. Photo: Glenn Hunt

iiNet has blamed Australia's biggest telecommunications company, Telstra, for the slower internet connection speeds that have hit some of its customers since the arrival of Netflix.

The US video streaming giant launched its Australian service last week and proved to be a hit with iiNet customers, accounting for 15 per cent of its total consumer traffic.

But several customers vented their frustration on social media and to Fairfax Media, saying the surge in demand Netflix has slowed their internet connection speeds.

iiNet has signed an unmetered deal with Netflix, meaning time spent viewing the US streaming giant isn't included in monthly data allowances.

"Uggggh Internet has been unusable the last few days. Yay for unmetered Netflix @iiNet but also thanks for the congestion," one consumer wrote on Twitter.

"Might this explain why my iiNet ADSL speeds seem to have slowed in the last week or so?," another told Fairfax Media. "That is, there is a bunch of new streamers online, and they are clogging the system up?"

Another wrote: "the start of Netflix has also shown up the poor state of our current internet infrastructure. Almost immediately Netflix came on line, my evening business grade service slowed down so other stuff I was streaming ... began having buffering issues and slowing load up."

But iiNet chief executive David Buckingham pointed to what he called "mass service disruptions" on Telstra's copper network as the reason some customers suffered slower connection speeds.

"We are having countless mass service disruptions on the Telstra copper network right now, so it might be people caught up in those who are commenting," Mr Buckingham said.

"Any technical issue would quite easily affect Netflix streaming, just like any other video download."

Mass service disruptions (MSDs) have a variety of triggers, such as severe weather. But a Telstra spokesman said it was difficult to determine whether a MSD had slowed the internet connection speeds for some of iiNet's customers.

"There are many factors which affect network performance, including distance from the exchange, a customer's equipment and software, and the number of people using a connection," the spokesman said.

But he acknowledged the network had experienced "higher-than-usual fault rates" during summer.

"In line with the multiple extreme weather events across Australia this summer, including cyclones, high rainfall and bushfires in different parts of the country, we have been experiencing higher-than-usual fault rates.  However, last month, we still achieved an average service availability of 99.69 per cent for voice services on the copper network and a fault free rate of 98 per cent."

The spokesman defended the company's copper network, saying it could service the hundreds of thousands of Australians who have subscribed to video streaming services, such as Netflix, Presto and Stan this year.

"Most Telstra customers should be able to stream high definition video, with typical download speeds up to 8Mbps for ADSL and up to 20Mbps for ADSL2+," he said.

"Five years ago hardly any video traffic was carried over Telstra's fixed network. Now it accounts for 30 per cent of our overall fixed network traffic. 

"Each month there is more than 27.5 petabytes of video traffic carried over our fixed network. That's equivalent to watching more than 13 million hours of high definition videos each month."

Ovum analyst David Kennedy said video streaming was unlikely to hinder internet connection speeds.

"I'm not actually anticipating a lot of problems because the telcos have seen this coming, years off," Mr Kennedy said.

"Basically every exchange has fibre connected to it. They can carry gigantic amounts of traffic.

"All that's required to upgrade that capacity is to upgrade the electronics and in a lot of cases that can actually be done by software."

Foxtel, which is half-owned by Telstra, launched a streaming joint venture – Presto Entertainment – with Seven West Media in January. The telecommunications company has an unmetering deal with Presto.

Mike Sneesby, chief executive of Stan – a partnership between Nine Entertainment and Fairfax Media, owner of BusinessDay and The Australian Financial Review – said Australians had embraced video streaming.

He said Stan, which also launched in January, has more than 100,000 customers and is streaming more than 1 million hours of content a month.

25 comments so far

  • "There are many factors which affect network performance, including distance from the exchange, a customer's equipment and software, and the number of people using a connection,"

    Of course, that applies to the 3rd world copper connections that most of Australia will be left with under the farcical fraudband mess presently being rolled out. Ask someone on fibre to the premises how their link speed varies with distance. It doesn't.

    Commenter
    Alistair
    Date and time
    March 31, 2015, 11:46AM
    • You can thank Malcolm Turnbull.
      No problems at my place.
      But then, we are in a new building and have NBN Fibre-to-the-premises.

      Commenter
      Sir Noddy
      Location
      Erko
      Date and time
      March 31, 2015, 11:52AM
      • Well you all voted for the CHAOTIC LNP FRAUD BAND WHAT IDIOTS YOU ALL ARE.

        Commenter
        oldfella68
        Date and time
        March 31, 2015, 11:53AM
        • That would explain why MYOB AccountRight Live has been almost unusable these last few days. Would've been quicker to go back to journal books....

          Commenter
          Tuts
          Date and time
          March 31, 2015, 11:55AM
          • We all new this would happen when everyone started streaming videos from other countries. The pipe get squeezed on the trip to the US . Building the NBN will be usless as a four lane driveway from your house to the street only to get stuck at the first roundabout. More bandwidth to the world is what is needed.

            Commenter
            Frank from the (slow) country
            Date and time
            March 31, 2015, 11:58AM
            • Yep. Australia just dipped it's big toe into the ocean that is streaming media that the rest of the developed world has been swimming in with gay abandon for years, and Australia just realised it can't swim.

              Commenter
              ab
              Date and time
              March 31, 2015, 11:58AM
              • Wonder of some kind of optic fibre network would help this congestion? But I guess there was no way anyone in the government could have predicted that bandwidth would continue to increase exactly like it has for the past ten years!

                Commenter
                QED
                Date and time
                March 31, 2015, 11:58AM
                • I'm not sure Telstra is to blame. I am on optus cable and it has slowed considerably since Netflix launched. Infact it has been progressively slowing down for months as people move to streaming. Peaks periods around 4-6pm are terrible as the kids in the neighbourhood hit iView.
                  Bring on the NBN in Gladesville, i fear it is the only thing that will save us?!
                  #HurryupMalcolm

                  Commenter
                  DrMitch
                  Location
                  Sydney
                  Date and time
                  March 31, 2015, 11:59AM
                  • And this is why the liberal Internet (can't even call it broadband) is a farce. Labors wasn't great - it was far too inflexible and not open to growth - but it was better than this.

                    Commenter
                    ab
                    Date and time
                    March 31, 2015, 12:00PM
                    • You have to laugh. This is what the NBN was all about but people could only see what they had at the time and not what the possibilities were.

                      Commenter
                      Lance
                      Date and time
                      March 31, 2015, 12:01PM

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