NBN Co lodges proposed SAU Variation with ACCC

NBN Co

NBN Co today welcomed the public release of its proposed Special Access Undertaking (SAU) Variation and supporting document, which were lodged with the Australian Competition and Consumer Commission (ACCC) on Tuesday 29 November 2022.

NBN Co has made significant additional modifications to its proposed SAU Variation following detailed consultation with the ACCC, internet retailers, consumer advocacy groups and the Government.

The company is committed to implementing new wholesale prices by 1 July 2023 if the SAU Variation is accepted by 31 March 2023. If the SAU Variation is accepted after 31 March 2023, the company has committed to implementing the new wholesale prices within three months of ACCC acceptance of its SAU Variation.

Highlights of NBN Co’s proposed SAU Variation:

  • Removal of CVC (capacity) charging and introduction of AVC-only pricing for the nbn® Home Fast (100 Mbps) and above wholesale speed tiers within three months of SAU Variation acceptance.
  • Significant wholesale price reductions to key higher speed tiers and new entry level 25 Mbps offers within three months of SAU Variation acceptance.
  • Annual reductions in CVC charges leading to the complete removal of CVC charges and introduction of AVC-only pricing across the 12, 25, 50 Mbps fixed line and fixed wireless wholesale speed tiers by 1 July 2026. This applies to TC-4 CVC charges only, not TC-1 and TC-2 CVC charges. The annual reductions in CVC charges do not apply to 12/1 and 25/5 Mbps Satellite services.
  • Significantly reduced wholesale combined charges on 25 Mbps and Voice Only (12 Mbps), along with reduced wholesale prices for high-speed tiers are balanced against a marginal increase in the combined charge of the 50 Mbps fixed line and fixed wireless wholesale speed tiers.
  • Significant CVC operational improvements via the introduction of ‘as utilised’ rather than ‘pre-provisioned’ CVC charges across the 12, 25 and 50 Mbps fixed line and fixed wireless wholesale speed tiers, which has been retained from the withdrawn March Variation .
  • Introduction of a Weighted Average Price Control (WAPC) that will initially cap overall annual wholesale price increases on average at CPI, ensuring NBN Co’s average prices cannot increase in real terms .
  • Limiting drawdown of the Initial Cost Recovery Account (ICRA) to $12.5 billion (in 2023 dollars) over the term of the SAU .
  • Setting benchmark service standards for each regulatory period, with ACCC oversight.
  • Provisions to allow the ACCC the discretion to reset the regulatory framework from 2032.
  • Automatic expiration of the SAU before 2040 if a future Government relinquishes control of NBN Co.
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