iTWire - NBN Co publishes three-year indicative pricing roadmap
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Monday, 22 May 2023 09:47
NBN Co publishes three-year indicative pricing roadmap Featured
By Sam Varghese
NBN Co, the company rolling out Australia's national broadband network, has published its indicative pricing roadmap for the three years from FY2024 to FY2026, saying this would help interested parties in assessing the company's proposed variation to its special access undertaking.
In a statement released on Friday, the NBN Co said its SAU Variation proposal committed the company to publishing a new three-year rolling Pricing Roadmap by 1 May every year.
"The Pricing Roadmap for the next three fiscal years indicates that the total weighted average basket of NBN Co wholesale prices will be within inflation forecasts," it said.
"The Pricing Roadmap will be finalised subject to the Australian Competition and Consumer Commission’s acceptance of a revised SAU Variation, which the company is planning to lodge in June 2023."
In a statement on 2 May, ACCC commissioner Anna Brakey said: “The ACCC can only decide to accept or reject NBN Co’s variation proposal, and our draft decision... is to reject this proposal.
"However, in making our decision, we have identified a number of aspects of it that reflect issues raised in the ongoing industry consultation process and which represent a significant improvement on the current SAU and earlier variation proposals."
In Friday's statement, NBN Co reaffirmed its plans to remove CVC (capacity) charges and deliver flat-rate wholesale pricing for its highest speed products, including NBN Home Fast, NBN Home Superfast and NBN Home Ultrafast.
"The company’s planned prices for FY24 are in line with those it put forward as part of its SAU Variation lodged with the ACCC in November 2022," it said.
"The Pricing Roadmap... is draft and indicative only for FY25 and FY26 and is based on the Reserve Bank of Australia’s published forecasts in February 2023 for inflation in these outer years.
"NBN Co has applied an RBA-forecast CPI of 4.8% in FY25 and 3.2% in FY26. The company estimates the overall price increases across the total set of NBN products covered by the WAPC will be approximately 4.6% in FY25 and approximately 3.0% in FY26.
"In FY25 and FY26, indicative wholesale prices in the Pricing Roadmap for NBN Co’s entry level 12/1 Mbps, 25/5 Mbps and 25/10 Mbps products (excluding satellite services) are indexed to inflation, while the 50/20 Mbps and Home Fast 100/20 Mbps speed tiers are each increased by 5% in FY25 and 3.2% in FY26."
Full details of the draft three-year Pricing Roadmap are available here.
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