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NBN Prices Set To Double

According to a redacted submission published by the ACCC on Monday (Australian Competition and Consumer Commission), NBN Co are looking to double their prices and lock in further price rises until 2040.

The NBN submission, which they call the Special Access Undertaking, will see the price of entry-level plans double over the next decade. This comes at a time where interest rates and inflation are rising, and consumers are already under pressure. The move is also set to aggravate teclos.

“The only thing clear from NBN’s convoluted pricing model is that internet services are going to get more expensive for Australians in the future,” said a spokesperson from TPG.

“This proposal will effectively make entry level broadband in Australia a thing of the past and is a slap in the face for those who rely on affordable broadband to stay connected for work, study and play.”

“The NBN’s pricing proposal can be summed up as price hikes and no improvements.”

NBN CEO Stephen Rue
Credit: The Land

An ACCC published paper on the submission states that “It is difficult to forecast exactly how quickly and by how much the maximum allowable cost to retailers to access the entry level speed tier would increase over the remainder of the SAU term should the SAU variation be accepted.”

“Applying NBN Co’s current forecasts the maximum allowable cost to retailers to acquire the entry level speed tier would double by around 2033 and continue to increase towards $104 per month in nominal terms by 2040.”

NBN Co also wants to ditch CVC pricing and opt for a ‘pay as you go’ model for higher-level plans for retailers as well as to implement a single regulatory framework covering all network technologies, including fibre-to-the-node and more. The current SAU only covers fibre-to-the-premises, fixed wireless, and satellite network technology.


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