NBN Co today released details of a proposed extension to its current Wholesale Broadband Agreement (WBA4) with Retail Service Providers (RSPs) and issued a consultation paper to start discussions on a new Wholesale Broadband Agreement (WBA5), which is scheduled to come into effect in mid-2023.
The extension, known as WBA4+, includes a bridging offer, which forms part of the company's ongoing focus on improving the nbn® network and overall customer experience, while providing additional support and certainty to RSPs. The offer will precede the significant reductions in wholesale pricing that NBN Co has proposed for inclusion in its revised Special Access Undertaking (SAU).
The bridging offer will cover the period after 30 November 2022, when the current Wholesale Broadband Agreement (WBA4) is due to expire, until the new SAU has been accepted by the ACCC and implemented via a new Wholesale Broadband Agreement (WBA5).
In parallel with the WBA4+ bridging offer, the company has released its WBA5 Consultation Paper, which will focus on seeking feedback on how to engage with RSPs to ensure the effective operational implementation of a new SAU. The parallel consultation process is intended to ensure the significantly modified wholesale pricing and commitments of the new SAU can be ready for implementation via WBA5 by the target date of 1 July 2023.
As previously announced, NBN Co is preparing a new SAU variation proposal that reflects the recent changes in the policy landscape and operating environment. The ACCC will review the company's new SAU Variation once submitted in October 2022, and it is expected that the ACCC will commence consultation shortly thereafter to enable the process to be finalised by early 2023.
As part of its revised SAU Variation proposal, and in addition to the previous commitment to remove CVC (capacity) charging and introduce AVC-only pricing for the nbn Home Fast (100 Mbps) and above wholesale speed tiers by 1 July 2023, NBN Co has proposed a firm timeframe for the complete removal of CVC charges and the introduction of AVC-only pricing across the 12, 25 and 50 Mbps wholesale speed tiers by 1 July 2026.
It has also proposed significant wholesale price reductions to AVC-only pricing on key higher speed tiers by 1 July 2023; reduced wholesale bundle charges or additional data inclusions on 12, 25 and 50 Mbps wholesale speed tiers; the introduction of a Weighted Average Price Cap (WAPC) that will initially cap the company's overall pricing on average at CPI; further limitations on drawdown of the Initial Cost Recovery Account (ICRA); setting benchmark service standards for each regulatory period, with ACCC oversight, and the automatic expiration of the SAU before 2040 if a future Government relinquishes control of NBN Co.
