ACCC accepts NBN Co's revised pricing proposal

The Australian Competition and Consumer Commission (ACCC) has accepted NBN Co’s latest proposed variation to its Special Access Undertaking (SAU).

The SAU sets the price and service standards that will govern how broadband providers will access the NBN until 2040.

The SAU approval comes after over two years of consultation between NBN Co and broadband providers, the ACCC, federal government and consumer groups.

NBN Co withdrew its two previous SAU proposals due to a new set of expectations from the government. The pricing proposals and structure have been a contentious issue for some retail service providers, including Telstra.

The approved proposal introduces a raft of price terms, including a restriction on annual increases in NBN Co’s average wholesale price to no more than the change in the consumer price index.

Connectivity virtual circuit (CVC) bandwidth charges will end for services of 100Mbps and above from December 1.

CVC charges will end for all other services by 1 July 2026, with gradual price reductions until then.

A $55 price cap will also be placed on 12, 25, 50 Mbps fixed line and fixed wireless wholesale speed tiers in the 2024 financial year, regardless of the volume of data used.

NBN Co has stated that it intends to put in place new commercial agreements with broadband providers by 1 December this year.

“The ACCC’s approval of our SAU Variation is great news for customers and marks the start of an important new era for the Australian telecommunications industry," NBN Co's chief regulatory affairs officer Jane van Beelen said. 

“By the end of this year, we will eliminate CVC (capacity) charges from our highest speed tiers, which offer wholesale download speeds from 100 Mbps to close to 1 Gbps."

"This will deliver greater cost certainty to retailers and significant long-term cost savings for customers than would otherwise be the case under our current wholesale price structure given the trend for data demand to double every three years or so."

“And by reducing CVC charges and committing to adjust data inclusions over the next three years on our entry level and mid-speed tiers (wholesale download speeds from 12 Mbps to 50 Mbps), we are providing high-value products that will smoothly transition to flat rate wholesale pricing by 1 July 2026."