ACMA review of the NBN and RSPs – it takes three to tango!

The ACMA and ACCC investigate whether NBN speed issues stem from network deficiencies or insufficient RSP capacity purchases.

Vinay Chhoda · Venture Insights1 August 2017Period: August 20174 min read

Last updated 10 June 2026

5.7m↑

Total NBN premises reached (August 2017)

3x↑

Growth in TIO complaints about NBN (2014-2016)

Locked

+2more stats

Companies covered:NBN CoTelstraOptusTPGVocus

Abstract

This report examines the regulatory response to the significant increase in consumer complaints following the NBN rollout reaching 5.7 million premises. With complaints growing 3x between 2014 and 2016, the ACMA and ACCC have initiated monitoring programs to determine if performance issues are caused by NBN infrastructure or Retail Service Providers (RSPs) failing to purchase adequate Connectivity Virtual Circuit (CVC) capacity. The analysis highlights the tension between maintaining RSP margins and delivering promised broadband speeds.

Key Takeaways

NBN complaints to the TIO increased by more than 3x between 2014 and 2016 as the rollout reached 50% completion.
The ACMA is using formal powers to compel data from over 20 RSPs to identify the root causes of migration and speed issues.
ACCC Chairman Rod Sims notes that 30% of customers are on low-speed plans that may underperform compared to legacy ADSL.

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Frequently Asked Questions

Customer dissatisfaction has reached a critical threshold as the rollout scaled to 5.7 million premises. Complaints to the TIO tripled between 2014 and 2016, forcing the ACMA and ACCC to investigate whether the fault lies with infrastructure or service provider under-investment.

The core tension lies in the Connectivity Virtual Circuit (CVC) pricing, currently set at A$14.40 per 1Mbps per month. Retailers are prioritizing profit margins over performance, leading to congestion and a situation where 30% of customers are sold low-speed plans.

The ACCC is launching a A$7 million broadband monitoring program over the next four years. This initiative will utilize 4,000 volunteer customers to provide hardware-based performance data to isolate speed issues and assign responsibility.

ACMA review of the NBN and RSPs – it takes three to tango!

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