nbn disrupts itself and the market with proposed speed boost

nbn targets 90% of fixed line footprint with dramatic speed upgrades to drive ARPU and counter 5G FWA threats.

Heath Gibson · Executive Manager – Industry Intelligence and Insights at NBN Australia8 March 2024Period: Q1 20244 min read

500 / 50↑

Proposed Speed Upgrade for current 100 / 20 Mbps tier (Mbps)

750 / 50↑

Proposed Speed Upgrade for current 250 / 25 Mbps tier (Mbps)

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Abstract

This report analyses nbn's proposal to dramatically increase speeds on its FTTP and HFC networks without increasing wholesale charges. The move targets customers on 100Mbps+ tiers, offering upgrades up to 500/50 Mbps and 750-1000/50-100 Mbps. By upgrading up to 90% of its fixed-line footprint, nbn aims to encourage migration from lower-tier plans and protect its high-value base from 5G fixed wireless access (FWA) substitution from providers like Telstra, TPG, and Optus.

Key Takeaways

nbn proposes upgrading the 100/20 Mbps tier to 500/50 Mbps and the 250/25 Mbps tier to 750/50 Mbps with zero increase in wholesale costs.
The highest tier (500-1000/50 Mbps) is proposed to move to 750-1000/50-100 Mbps, doubling the potential upload speed.
Up to 90% of the fixed-line footprint will be eligible, including FTTN and FTTC areas currently undergoing fibre upgrades.

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Frequently Asked Questions

nbn plans to upgrade the 100/20 Mbps tier to 500/50 Mbps and the 250/25 Mbps tier to 750/50 Mbps at zero additional wholesale cost. The top-tier 500-1000 Mbps plan will see its potential upload speed double to 100 Mbps, significantly enhancing the value proposition for high-end users.

The proposal covers up to 90% of the fixed-line footprint, specifically targeting FTTP and HFC connections. This includes FTTN and FTTC areas currently transitioning to fibre, ensuring the vast majority of the high-value customer base can access the new speeds.

This is a defensive strategy to counter 5G fixed wireless access (FWA) competition, specifically targeting Telstra’s 500Mbps+ home broadband product. By offering a 5x download speed increase on the 100 Mbps tier, nbn aims to prevent churn to mobile-led alternatives that often impose 1000GB data limits.

The proposal is more aggressive than the New Zealand Chorus 'big fibre boost,' which offered a 3x speed increase. By providing a 5x download speed boost for the 100 Mbps tier, nbn is positioning its wholesale offering as one of the most competitive globally for high-bandwidth residential services.

nbn disrupts itself and the market with proposed speed boost

Abstract

Key Takeaways

Frequently Asked Questions

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