NBN Co submits special access undertaking to ACCC

NBN Co submits special access undertaking to ACCC

SAU to affect NBN access seekers for the next 30 years and give watchdog greater power in regulating NBN prices

NBN Co has lodged its long-awaited special access undertaking (SAU) to the Australian Competition and Consumers Commission (ACCC) which would affect National Broadband Network (NBN) access seekers for the next 30 years.

This comes a week after the Government-funded company released the final version of its NBN wholesale broadband agreement (WBA).

The SAU and WBA will work in conjunction to determine the terms and pricing for NBN access seekers which, in most cases, would be ISPs.

The SAU will affect price and non-price terms until 2040 while the WBA sets out commercial agreements between NBN Co and its customers over a shorter period of time.

They cover all wholesale Layer 2 services offered by NBN across fibre, wireless and satellite networks.

But what the SAU also does is give the ACCC greater power on various NBN-related issues such as introduction of new prices.

The current SAU commits NBN Co to keeping prices of basic products the same until June 2017. This applies to all services and products offered by NBN Co over all networks.

It also introduces a mechanism that allows “NBN Co to recover only its prudently incurred costs, and no more,” according to a statement from the company.

“NBN Co believes its proposed approach will provide an appropriate blend of both certainty and flexibility in its access arrangements, and deliver a level of regulatory oversight that will ensure those arrangements continue to meet the needs of industry,” NBN Co said in the statement.

The SAU was a result of a two-year consultation with the telco industry and the ACCC. It is still subject to approval by the ACCC.

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Tags nbn coTelecommunicationsNational Broadband Network (NBN)Australian Competition and Consumers Commission (ACCC)special access undertaking (SAU)wholesale broadband agreement (WBA).

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