Optus Internet Pty Limited - s.87B undertaking

Optus and Excite@Home jointly provide the Optus@Home residential cable Internet service. The service was launched in January 2000. Prior to 4 August 2000 the service was advertised as unlimited. The service was limited by an Acceptable Use Policy ('AUP'). The AUP provided that Optus may suspend or terminate the supply of the service to a customer if the customer breaches the AUP. On 30 June 2000 Optus began to send letters to customers whom Optus was of the view were in breach of the AUP. Customers who failed to reduce their usage after receipt of the warning letter were subsequently terminated from the service. As at 3 August 2000, 320 customers were sent warning letters and 66 customers had been terminated from the service. Of those customers who were disconnected 27 have since been reconnected.

The undertaking provides, amongst other things, that Optus and Excite@Home will:

• not advertise the service as including "unlimited downloads" or "unlimited access" and will remove all advertising material that incorporates references to "unlimited access" or "unlimited downloads";
• revise the AUP;
• write to all customers who have been terminated and who have not been reconnected, confirming its position and offering a full refund of all moneys paid (including installation, monthly and termination fees);
• write to all current customers clarifying the AUP and allowing such customers 30 days to cancel their subscription if they wish; and
• write to all customers who have signed up for the service but have not yet been installed clarifying the AUP and refund their installation fees (if any) that have been paid if they wish to cancel their subscription.