NBN Set To Drop Internet Prices
NBN is now set to drop the prices of a number of its plans, after revising a controversial pricing proposal which would have seen internet costs soar.
The new Labour government has indicated it will treat the National Broadband Network as a public utility rather than a moneymaking scheme, with Communications Minister Michelle Rowland saying the service won’t be privatised in the “foreseeable future.”
In turn, NBN Co. formally withdrew its ACCC application, known as the Special Access Undertaking, which would have seen Australian pay a lot more for broadband.
NBN argued that these hikes were necessary for the profitability of the $51 billion scheme, which is currently $35 billion in the red, compounding at 6 per cent a year.
Under the “changed policy landscape”, NBN will no longer have to operate with such aggressive overheads, as the major goal is not to run for profit with a view to sale. Its new proposal to the ACCC reflects this.
The NBN will now drop the prices for its fastest schemes, and cut excess charges for smaller plans.
“We appreciate that retailers want price certainty,” said NBN chief executive Stephen Rue.
“This proposal provides for that. We are planning to reduce our wholesale pricing to put higher speed broadband within easier reach.”