The ACCC has published its final replacement module determination for the 1 July 2026 to 30 June 2029 regulatory cycle (second regulatory cycle), under NBN Co's special access undertaking (SAU).
The SAU regulates the terms and conditions for wholesale access to the NBN, in accordance with Part XIC of the Competition and Consumer Act 2010. The SAU provides for replacement module processes to periodically update specified regulatory settings.
This is the ACCC's first replacement module determination following the SAU's variation in October 2023. The ACCC has made its determination after extensive engagement with NBN Co, industry and consumer stakeholders in 2025 and 2026.
We have determined the following matters for the second regulatory cycle:
- NBN Co's entry level offers from 1 July 2027 will be 25/10 Mbps offers on its fixed-line networks, and the closest equivalent offers on its fixed wireless network where that speed tier is not available.
- Some of NBN Co's benchmark service standard proposals have been adopted from its replacement module application and its February and May submissions, and some have been built upon to improve long-term outcomes for consumers and reflect the views of other stakeholders. In many cases, we have determined that our service standard improvements can be delivered at lower costs than NBN Co submitted.
- NBN Co's prudent and efficient capital expenditure over the first regulatory cycle has been set to $10.62 billion (real FY2024) and forecast capital expenditure over the second regulatory cycle has been set to $6.97 billion, including alternative expenditure amounts where expenditure lacks demonstrated need, end users' willingness to pay, or robust business cases. Most of our adjustments to NBN Co's capital expenditure for the second regulatory cycle reflect our decision to cap expenditure for the remaining fibre-to-the-node upgrades at the maximum amount specified by the Minister for Communications in the Government Policy Project Notice.
- A lower real annual building block model revenue requirement (ABBRR) for NBN Co has been set to $16.75 billion (2014 dollars) for the second regulatory cycle, which reflects our determinations on expenditure and the weighted average cost of capital.
- No NBN Co products or services have been recategorised, including NBN Co's planned low earth orbit (LEO) satellite and 'built for business' products, which remain categorised as core regulated services.
- The regulatory cycle duration is 3 years.
We have also determined that NBN Co will not reach the point where its revenue earned from its core (regulated) services will exceed its regulated costs for these services (the ABBRR) during the second regulatory cycle (that is, it is not expected to reach cost recovery). This means that NBN Co's wholesale prices for its regulated services will remain capped by CPI. However, our determination of prudent and efficient expenditure will ensure that when NBN Co does reach cost recovery in future, its prices will be set to a level that only recover its prudent and efficient expenditure from customers.
The final replacement module determination, the document outlining the ACCC's reasons for its decisions and other related material, such as a public version of NBN Co's building block model, are now available.
Background
NBN Co's services must be declared under Part XIC of the Competition and Consumer Act 2010 (CCA). They are therefore subject to an access regime that aims to promote the long-term interests of end users.
NBN Co's current special access undertaking (SAU) provides a long-term regulatory framework for regulating access to the NBN and the supply of NBN Co's services. It has been in place since 2013 and is scheduled to operate until 2040.
NBN Co's SAU was fundamentally varied in October 2023. Under the varied SAU, NBN Co must periodically provide the ACCC with a replacement module application for each upcoming regulatory cycle at a time specified by the ACCC.
Under the SAU, NBN Co must submit a replacement module application to the ACCC with proposed settings for an upcoming regulatory cycle, and the ACCC may make a replacement module determination of those settings for that cycle. These settings include:
- a proposed regulatory cycle which must be either 3, 4 or 5 years in duration
- a service standards proposal
- a building block model proposal, which includes values for expenditures, depreciation expenses, the regulatory asset base and the weighted average cost of capital
- an entry level offer proposal
- any re-categorisation of products or services from core to competitive.
The ACCC may determine the settings as proposed in NBN Co's RMA or otherwise as determined in accordance with the SAU.
On 2 July 2025, NBN Co submitted its replacement module application covering the regulatory cycle commencing 1 July 2026. The ACCC published its draft replacement module determination on 31 March 2026.
The ACCC had until 2 September 2026 to make its final determination, after having extended this deadline by 3 months from the original due date of 2 June 2026.
