The ACCC is inviting stakeholders to submit concerns and thoughts regarding NBN Co’s proposed variation to its Special Access Undertaking.
The ACCC today published its consultation paper on the proposed changes to the undertaking.
The variations NBN is proposing would result in “significant changes” to its product and pricing commitments, including the staged introduction of flat rate access prices with the removal of most bandwidth variable charges by July 2026.
It would also set a cap on the average price per consumer that retailers pay for access, which could provide more certain access costs and allow retailers to better compete in supplying services to consumers.
“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,” ACCC Commissioner Anna Brakey said.
Under the proposal, average prices across all customers will increase through the remainder of this decade in line with inflation with some speed tiers initially cheaper and others more expensive.
“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. We understand that NBN Co is committed to continuing to work constructively with us and stakeholders in this consultation process to consider and address these issues,” Brakey said.
“Our current concerns relate to the apparent limitations on the ACCC’s ability to make regulatory determinations that would encourage NBN Co to invest and operate more efficiently over time, and the robustness of the proposed processes for making these determinations.
“We also want to test with stakeholders the suitability of the initial benchmark service standards for addressing ongoing quality issues within a reasonable time.
“We will continue to consider NBN Co’s proposal, applying the statutory test and having regard to stakeholder submissions, before making our decision,” Brakey said.
An NBN spokesperson told ChannelNews that NBN Co welcomes the ACCC’s publication of the consultation paper.
“We note the ACCC’s detailed views on the proposed SAU variation that the company lodged at the end of November 2022. We will continue to work constructively with the ACCC, internet retailers, consumer advocacy groups and the Government towards the successful acceptance of our proposed SAU variation and we look forward to ongoing consultation with all stakeholders.
“Our proposed SAU variation puts the responsibility and investment risk on nbn to meet the expected growth in data demand, while earning the minimum revenues required to invest in the network to deliver faster speeds and greater capacity to customers. Our proposed SAU variation is also designed to meet the Government’s Statement of Expectations that nbn should operate in a commercially sustainable manner and achieve and maintain a standalone investment grade credit rating and provide an appropriate return to the Commonwealth as a shareholder.
“We remain committed to implementing new wholesale prices by 1 July 2023 if the SAU variation is accepted by 31 March 2023. If the SAU variation is accepted after 31 March 2023, we will commit to implementing the new wholesale prices within three months of ACCC acceptance of our SAU variation.”
The ACCC invites feedback from interested parties on the proposed variation by 17 February 2023.
