26 September 2023

ACCC to spend time on NBN affordability

Start the conversation

The Australian Competition and Consumer Commission (ACCC) is to examine the affordability of products being provided by the National Broadband Network (NBN Co).

Chair of the ACCC, Rod Sims said he had concerns that NBN Co’s wholesale pricing had resulted in unfair outcomes for some consumers.

Mr Sims said the inquiry would examine wholesale prices paid by retail service providers (RSPs) which use the NBN to supply residential-grade broadband services.

The inquiry would focus on prices for basic speed broadband products and would consider whether regulation was needed to ensure a smooth transition for consumers to the NBN from legacy services such as ADSL.

“We have concerns that NBN Co’s wholesale pricing has resulted in unfair outcomes for those consumers who have no need for, or do not want, higher speed plans,” Mr Sims said.

“Most consumers have no choice but to migrate to the NBN if they want to keep their home service active, but are at risk of not being able to obtain a comparable NBN service at a similar price to their ADSL service.”

He said the ACCC first raised these concerns publicly in April after NBN Co’s wholesale pricing changes in late 2018 led to the withdrawal of many basic speed retail plans.

“The ACCC is also concerned about NBN Co’s continued use of discounts to adjust access prices,” Mr Sims said.

“NBN Co can withdraw these discounts ahead of a notice period that it sets itself. The ACCC is concerned that these arrangements may not be providing enough certainty for RSPs as they develop and promote their retail offers.”

Mr Sims said the lack of certainty created unnecessary risks that might ultimately be passed on to consumers, who might then face higher prices and reduced quality and product offerings as a result.

The ACCC has released a discussion paper seeking submissions from interested stakeholders which it will accept until 15 November.

The Commission’s 65-page discussion paper can be accessed at this PS News link.

Start the conversation

Be among the first to get all the Public Sector and Defence news and views that matter.

Subscribe now and receive the latest news, delivered free to your inbox.

By submitting your email address you are agreeing to Region Group's terms and conditions and privacy policy.