The RBS levy and wireless broadband competition

Extending the Regional Broadband Scheme to wireless services aims for regulatory symmetry but risks higher prices.

Heath Gibson · Executive Manager – Industry Intelligence and Insights at NBN Australia1 August 2024Period: August 20244 min read

$8.26→

Monthly RBS charge per fixed-line service (June 2024)

$10-$20→

Monthly retail price premium of NBN over FWA plans

Locked

Companies covered:

Abstract

This report examines the potential impact of extending the Regional Broadband Scheme (RBS) levy to include 4G and 5G fixed wireless access (FWA) services. Currently, the RBS collects approximately $8.26 per month per service from fixed-line providers to fund unprofitable NBN areas. The ACCC has canvassed extending this to wireless providers to address market distortions, as retail NBN plans currently carry a $10 to $20 premium over equivalent FWA plans, potentially undermining the long-term funding base of the NBN.

Key Takeaways

The ACCC is canvassing an extension of the $8.26 monthly RBS levy to 4G and 5G fixed wireless services to ensure 'regulatory symmetry'.
NBN plans currently cost $10 to $20 more per month than equivalent wireless plans, giving FWA a significant retail price advantage.
Applying the levy to FWA would significantly erode the price advantage of entry-level 'Basic' wireless tiers.

Create a free account to keep reading

stakeholder implications · PDF download

Frequently Asked Questions

The current $8.26 monthly levy on fixed-line services creates a $10 to $20 retail price disadvantage for NBN plans compared to wireless alternatives. Regulators aim to prevent a 'death spiral' where a shrinking fixed-line subscriber base is forced to pay increasingly higher levies to fund regional infrastructure.

Extending the $8.26 charge to 4G and 5G fixed wireless access will significantly erode the price advantage of entry-level tiers. While plans exceeding the 25 Mbps threshold face immediate margin pressure, operators may attempt to keep 'Basic' tiers exempt by capping speeds to avoid the levy.

The ACCC must define 'substitutes' for fixed-line services, specifically deciding whether to include mobile hotspotting and high-speed data-only SIMs in the levy net. Without clear definitions, operators can bypass the $8.26 monthly charge by reclassifying fixed wireless services as mobile data products.

The RBS levy and wireless broadband competition

Abstract

Key Takeaways

Frequently Asked Questions

Free

Lite

Team

Abstract

Key Takeaways

Frequently Asked Questions

Unlock the full report

Free

Lite

Team