NBN Co is proposing to cut the prices of high-speed internet plans in an effort to win over the telecoms industry and the federal government, which wants broadband to be affordable for all customers.
Communications Minister Michelle Rowland urged the company in charge of the national broadband network last month to go back to the drawing board, deeming an initial regulatory proposal “unsatisfactory”.
A new document published by NBN Co in response to this request offers improved high-speed internet prices and the removal of a controversial pricing mechanism, which charges based on excessive data consumption, by 2026.
NBN Co boss Stephen Rue says the political landscape has changed since his SAU proposal [Special Access Undertaking] variation in March. Credit: Edwina Pickles
“The political landscape has changed since we presented our original SAU proposal [Special Access Undertaking] variation in March, which allowed us to reconsider our proposal,” NBN Co boss Stephen Rue said.
“We must maintain our ability to service public and private debt and ensure that we continue to be able to achieve an independent investment grade rating, without requiring any additional government funding beyond existing commitments.”
The telecommunications sector is already distrusted. TPG Telecom said it did not believe the proposal would deliver affordable internet to customers.
“We are concerned that NBN is focusing on delivering cost savings for high-speed users, while pushing through price increases on most of its low-speed services, including its most popular 50Mbps plan,” he said a spokesperson for TPG Telecom. “While this may benefit the NBN’s bottom line, it is not in the best interest of providing affordable broadband for all Australians.”
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