The company operating the National Broadband Network has claimed competition from wireless services including Elon Musk’s Starlink is threatening the viability of its business, as retail internet providers hit out at its plans to sharply raise prices.
The framework determines how much it can charge wholesale customers including Telstra, Optus and TPG Telecom. The proposal was criticised by the ACCC, which claimed it would result in a doubling of the cost of entry-tier internet plans over the next decade and ongoing price rises until 2040. “A significant and growing source of competition in markets in which NBN supplies residential services is from 4G, 5G, fixed wireless network and low-earth orbit satellite operators that are expanding their footprint and aggressively marketing their services as a substitute or alternative to a NBN fixed line service,” it said in its submission.“The extent of competition and substitution risk means that NBN faces substantial revenue sufficiency risk.
“NBN Co’s wholesale prices will rise and increase every year thereafter at a rate higher than inflation, thereby worsening household cost of living pressures and making NBN high-speed broadband unaffordable for many Australians,” the letter, signed by Telstra, TPG Telecom, Vocus, Aussie Broadband and Optus, said.“We believe the long-term interests of end users are paramount.
zoesam93 This is obviously an attempt to object to the increasing number of people converting to solar. To say that poles & wires make up 50% of a bill only indicates that all of this structure should have been put underground where little can affect it, therefor no risk to poles etc.
zoesam93 Our new government has inherited an infrastructure debacle that will take time to fix. Increasing the cost of access to the NBN is wrongheaded.
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