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NBN Competition Heats Up, 25Mbps Still Most Popular

The ACCC has released its quarterly NBN Wholesale Market Report, noting rising competition, and 25 megabits per second as the nation’s most popular NBN speed tier.

ACCC Chairman, Rod Sims, affirms competition is heating up, as more access seekers build sufficient scale to directly connect with the NBN at more POIs (points of interconnection):

“This report provides a clear indication of the level of competition developing over the NBN”

“Some of the small players are experiencing rapid growth and this shows promise for future competition. Direct connection will allow smaller retail service providers to have more control over their network in terms of how much Connectivity Virtual Circuit (CVC) they provision”.

[ACCC Chairman – Rod Sims]

The proportion of broadband access services acquired at metro POIs has jumped to 41% in September, up from 33% in September last year.

Sims affirms that the proportion of metro activations is only set to rise as rollout to captial cities expands.

The NBN Co is now supplying a total of 3,038,483 wholesale broadband access services, up from 2,511,392 services notched in the previous June quarter.

Mr Sims has revealed that 25 megabits per second, remains Australia’s most popular NBN speed tier.

  • 25 megabits per second speed tier represented 55% of all NBN services connected
  • 12 megabits per second consisted of 29%
  • 100 megabits per second represented 12%
  • 50 megabits per second consisted of 4%.

The ACCC’s report reveals that demand for aggregate network capacity (connectivity virtual circuit (CVC)) continues to jump – the NBN Co is contracted to supply 3,452 gigabits per second, which notably up from 2,820 notched in the June quarter.

The amount of CVC acquired per user has also increased, posting 1.11 megabits per second, up from the 1.09 megabits per second per user achieved in the June quarter.

The report also revealed that the number of premises connected via a Hybrid Fibre Coaxial (HFC) connection has almost doubled.

The ACCC states that there are 26 access seeker groups directly connected to NBN Co’s network –  the top four (Telstra, Optus, TPG Group and Vocus) are connected at all 121 POIs.

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