Question 1

How will the new pricing structure change what customers pay for internet?

Accepted Answer

The pricing spread between basic and high-speed plans is narrowing significantly. Retailers are already adjusting, with Aussie Broadband increasing basic retail prices by 10% while cutting ultrafast pricing by 13%.

Question 2

What is the immediate impact on the majority of the current subscriber base?

Accepted Answer

The 70% of users currently on 50Mbps or lower tiers face the most disruption as the industry transitions to the new WBA5 framework. These entry-level tiers now have a wholesale price cap of $55 per month for the 2024 financial year.

Question 3

How does this regulatory shift change the competitive environment for providers?

Accepted Answer

The move to AVC-only flat-rate pricing for tiers of 100Mbps and above removes variable capacity charges, incentivizing aggressive competition for high-speed customers. This is a high-stakes transition, as 38% of users switch their service provider during the fibre upgrade process.

Question 4

Does this provide long-term stability for the industry?

Accepted Answer

The approval of the Special Access Undertaking establishes a definitive regulatory framework that provides long-term certainty for nbn co and its resellers. This stability allows RSPs to move past regulatory ambiguity and focus on optimizing retail strategies under the new December 2023 contract terms.

SAU resolution brings both certainty and disruption

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