The TPG Telecom Ltd (ASX: TPM) share price moved lower today after the ACCC ruled it must join the likes of Optus and Telstra Corporation Ltd (ASX: TLS) in compensating some NBN customers who did not receive the maximum internet download speeds advertised.
TPG will have to compensate around 8,000 customers who were "misled" over achievable speeds commonly under TPG's "Seriously Fast Internet. Up to 100Mbps" advertising plan.
TPG customers entitled to a refund will receive between $10 and $30 for each month that they paid for their plan.
It's hard to get an idea of the approximate compensation bill but if you take the mid-point of the compensation per month due ($20) and multiply by say 10 months and then by 8,000 customers the telco could be looking at a compensation bill around $1.6 million.
This is just a loose estimate however and could be wide of the ballpark. Either way a figure in this region out of forecast EBITDA (operating income) of $800 million to $815 million in FY 2018 is not material.
TPG shares are down 1% to $6.57 on today's news and are up 28% over the last six months.
