Question 1

How will the new pricing structure impact retail margins?

Accepted Answer

The shift toward flatter AVC-only pricing provides significant cost certainty for high-speed tiers, specifically by removing CVC charges for plans at 100 Mbps and above. Retailers focusing on these unlimited high-speed plans can expand margins as NBN Co moves away from the $6 per Mbps overage rates seen in previous constructs.

Question 2

Is there a significant risk of customers switching to 5G mobile alternatives?

Accepted Answer

Approximately 5% of low-usage NBN customers are forecast to churn to 5G fixed wireless as entry-level wholesale costs rise under the new pricing models. However, 95% of the 1.31 million current data cap users are expected to remain on the NBN despite programmed real price increases.

Question 3

Why is NBN Co changing its pricing model now?

Accepted Answer

NBN Co is implementing programmed real price increases to recover its invested capital, marking the end of a period where service improvements were delivered at virtually no extra cost to users. This transition supports a broader economic shift where digitalisation is expected to create 250,000 new jobs by 2025.

Question 4

What does this mean for the future of remote work and digital services?

Accepted Answer

The network is transitioning from a rationed utility to a critical economic platform, supporting 86% of work-from-home employees who intend to maintain or increase their remote work levels. This infrastructure reliability is evidenced by the delivery of 54 million telehealth services in the 12 months ending March 2021.

NBN’s SAU Discussion Paper: Putting the broadband market on a new path

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