Aussie Broadband says white-label 'teething issues' delay migration plans

Aussie Broadband said that “teething issues” with its new white-label service meant it was unable to meet intended migration targets for the second quarter.

Managing director Phillip Britt.

In a market update, the company said it had intended to migrate 20,000 broadband customers via the white-label service in the quarter, but fell short.

“Due to teething issues in the early stages of the white label migration, only 8715 services have been migrated in the quarter, not the 20,000 anticipated,” the company said.

“The shortfall will now be migrated in Q3 FY22 and when combined with the originally planned Q3 FY22 migrations, we expect approximately 22,700 migrations to be completed in Q3 FY22 (subject to churn). 

“The teething issues have now been resolved however, due to the Christmas break, migrations have now concluded for the year and will recommence in mid-January 2022. 

“The migration shortfall is a  timing issue, and all services will be migrated by the end of Q3 FY22.”

Aussie Broadband white-labelled its services earlier this year, with Origin Energy the first to sign on.

The energy retailer is migrating its existing broadband user base over to Aussie Broadband via the white-label service.

Aussie Broadband maintained guidance for organic growth in broadband net additions for Q2, saying that it would hit the top end of a 33,000 to 40,000 range announced in October.