Market analysts have noted over time that Australia’s national broadband provider, the NBN, has been losing ground to private providers. They cite current studies that estimate one household out of every three connects through a service other than the NBN. As the Financial Review reports, the NBN is pleading with the Australian Competition and Consumer Commission (ACCC) to revise its rating to keep the NBN as a viable option for consumers.
The NBN says it must contend with “significant competition in the enterprise, business, and new developments markets from existing infrastructure providers, and also faces increasing competition from 4G, 5G and fixed-wireless services in the residential market.” Steven Rue, NBN Co chief executive, told the ACCC that revenues must increase to $49 [later revised to $57] per user in order to keep the NBN ahead of inflation.
A proposal to adopt a flat fee structure would address revenue issues on one end, but would likely create access issues on another. Consultant Accenture said that re-ordering the fees would involve altering the services, which would create a hardship for low data users. The NBN asserts that a forced revision to the billing structure will create much bigger bills for people with capped data plans who would be charged for things that are currently already factored in.
Between 69,000 to 170,000 end users will be priced out of choosing NBN services if the billing structure changes are initiated, claims NBN. The NBN would like the government’s approval to move beyond its fixed-line broadband monopoly and expand its services to remain an affordable, desirable broadband option for Australians.
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