26 September 2023

NBN to dial price and standard changes

Start the conversation

The Australian Competition and Consumer Commission (ACCC) is calling for feedback on proposed changes to NBN Co’s prices and services standards which could see consumers paying more.

ACCC Commissioner Anna Brakey said NBN Co was proposing a variation to its Special Access Undertaking which provides a framework for the economic regulation of the NBN until 2040, including rules for setting the maximum prices and service standards.

“Before we decide whether to accept NBN Co’s proposed variation, we want to hear from the retailers who sell NBN services, the households and businesses that rely on the NBN for their broadband and telephone calls, and all other stakeholders,” Commissioner Brakey said.

“The variation would result in significant changes to NBN Co’s product and pricing commitments, including the staged introduction of flat rate access prices with the removal of most bandwidth variable charges by July 2026,” she said.

“While average prices across all customers will increase through the remainder of this decade in line with inflation, some speed tiers would initially be cheaper and others more expensive.”

Ms Brakey said the changes could include price reductions for voice-only access and speed tiers of 100 Mbps or more, but price increases at the most popular speed tier of 50 Mbps.

She said the entry level broadband access offer would be moved from the 12 Mbps tier to the 25 Mbps tier, with an access price that sat between the current prices for those tiers.

“The variation would introduce a framework for setting benchmark service standards for the first time,” the Commissioner said, “however, NBN Co has proposed to initially continue with many of the existing service standards that do not currently address certain issues raised by the retail providers.”

“While NBN Co’s proposal appears positive in most respects, it is not presently clear how specific aspects would promote the long-term interests of the consumers and businesses that rely on the NBN.”

Commission Brakey said the ACCC’s Proposed variation to the NBN Co Special Access Undertaking consultation paper on the proposed changes was open for feedback until 17 February.

The Commission’s 79-page consultation 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.