Telstra Boss Claims NBN Pricing Sending Industry Broke
Telstra Chief Executive, Andy Penn, claims the NBN’s pricing structure is sending the industry broke, rejecting the stance of NBN CEO Stephen Rue.
According to The Australian, Penn asserts the NBN pricing is significantly higher than what retail service providers paid for access in the past.
Highlighting the fact Telstra was the local fixed broadband service provider before the NBN, Penn claims they currently charge wholesale customers an average of $20/month per customer.
Penn asserts the NBN’s current price is $44, with the view of raising to $51.
Telstra reportedly provides fixed broadband services to about 50% of the Australian population not on the NBN.
Penn claims it’s “not sustainable”, and will result in higher customer prices and lower quality – asserting prices need to come down by $20, not $2.
Penn’s remarks come after NBN CEO, Stephen Rue, addressed a senate committee early this week, asserting the business model is built on a “very significant uplift in internet capability.”
Rue claims Telstra’s call for lower prices has more to do with internal pressures, rather than the industry as a whole.
Whilst some commentators claim a federal government writedown of the NBN would enable lower wholesale prices, the government reiterated on Tuesday this is not on the cards.