The Australian Competition and Consumer Commission (ACCC) has issued a report finding that customers of the National Broadband Network (NBN Co) would benefit from lower entry prices and improved wholesale arrangements with suppliers.
In its report, Inquiries into NBN access pricing and wholesale service standards, the ACCC said NBN Co had agreed to implement its pricing and service standard improvements as part of the next Wholesale Broadband Agreement (WBA4).
Chair of the ACCC, Rod Sims said the improvements represented significant change from what was originally on offer when the ACCC’s access determination process started.
“These new arrangements will allow for more affordable entry level products for consumers who are happy with pre-NBN speeds, and promote competitive prices for the higher speeds made possible by the NBN,” Mr Sims said.
“Higher rebates for consumers will provide stronger incentives for NBN Co to meet reasonable service standards and address individual cases of poor service outcomes,” he said.
“NBN Co will implement the measures through its wholesale commercial agreements with NBN access seekers, which either sell NBN services directly to consumers or on-sell them to other retail service providers.”
Mr Sims said the measures included further reductions in the price of NBN Co’s entry-level access bundle; greater product and pricing certainty; stronger and more effective wholesale service standards; higher rebates for missed appointments; improved commitments and information on service speed performance; and extension of rebates to TC-2 services for small-medium businesses.
“We expect the NBN Co’s commitment to provide certainty over access charges, which are the most significant costs facing retailers, will reduce barriers to entry and encourage greater competition in retail markets,” he said.
Mr Sims said the report found that NBN Co’s commitment to include the measures in its next wholesale broadband agreement meant regulatory action through a Final Access Determination was not required at this stage.
The ACCC’s 66-page report can be accessed at this PS News link.
