Telstra has blasted the NBN’s bloated infrastructure costs, saying they have led to inflated prices and the pricing out of everyday Australians.

In a submission to the ACCC, Telstra argues that past government policy has led to the network being “under-utilised” by most Australians.

“NBN Co’s current wholesale prices will mean the NBN will become the network for only those who can afford it,” Telstra said.

“It will not be accessible for many Australians who need it.

“25 percent of premises that were disconnected from the copper network chose not to migrate to the NBN, largely related to charging high wholesale prices.”

Many are opted instead for cellular wireless internet, “a limited and suboptimal response from customers and retail service providers to NBN Co’s inefficiently high wholesale prices.

“Price sensitive customers choose not to pay high prices for low-speed NBN plans (50 Mbps and below) and instead take up mobile and fixed wireless for broadband when suitable,” Telstra said.

“RSPs are able to offer fixed wireless services in the 50-100 Mbps speed range at a lower price than what they are able to offer on the NBN.

“Willingness to pay for high-speed NBN plans (100 Mbps and above) is insufficient to warrant NBN Co’s existing prices.

“The broad approach taken to regulation of NBN prices means that if demand is lower, then prices need to be higher to recover average cost – yet as prices are high demand falls.

“There needs to be an intervention in this negative cycle, setting wholesale prices lower to encourage greater demand.

“This way the NBN will be accessible for all that need it, not just the few that can afford it.”