Question 1

What is the specific target for high-speed internet adoption in the coming years?

Accepted Answer

nbn co aims for 30-35% of TC-4 services to be on speed tiers of 100Mbps or higher by FY26. The network entered FY24 with 26% of its subscriber base already on these high-speed plans, following the addition of 987,000 such users over the previous 18 months.

Question 2

How has the wholesale pricing structure changed to encourage users to upgrade?

Accepted Answer

The wholesale price gap between the 50Mbps and 100Mbps tiers has been reduced from $13 to just $5 per month. This $8 reduction is designed to lower the barrier for Retail Service Providers to migrate their existing customer base to higher-margin services.

Question 3

Are consumers willing to pay more for faster connectivity given current economic conditions?

Accepted Answer

Significant price sensitivity exists, as 75% of users currently pay $89 per month or less for their service. Furthermore, approximately 33% of nbn users do not know their current speed tier, suggesting that RSPs must overcome both cost-of-living pressures and a lack of consumer awareness to drive upgrades.

Question 4

How will inflation impact wholesale costs for service providers?

Accepted Answer

Wholesale pricing for FY25 and FY26 has been revised downward to align with lower RBA inflation forecasts. RSPs must integrate these inflation-linked price adjustments into their long-term financial modeling to maintain margin stability.

nbn’s high speed ambitions

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