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ACCC submits changes to NBN Co SAU

ACCC submits changes to NBN Co SAU

Key changes include extending the number of price reviews and new provisions preventing NBN Co from making variations to existing products

The Australian Competition and Consumer Commission is putting forward a number of changes for consideration in the Special Access Undertaking (SAU) offered by NBN Co.

Key changes in the variation notice include extending the number of price reviews the ACCC may undertake (in which it may review CVC charges, for example) during the NBN roll-out period from one to two; new provisions preventing NBN Co from making variations to an existing product that reduce the functionality, performance or features of the product; further changes relating to the ACCC’s assessment of the prudency and efficiency of NBN Co’s capital expenditure during the roll-out period.

ACCC Chairman, Rod Sims, said finalising the SAU provides the regulatory certainty that access seekers are requesting before they enter into longer term commercial contracts with NBN Co.

“The ACCC understands that the government will now provide new policy directions to NBN Co. However, most of the commitments in the SAU are technology neutral and will apply even with a significant change in network design,” Sims said. “If NBN Co wishes to vary the undertaking in the future in light of any new directions from the government, this can be accommodated.”

NBN Co has until November 19 to respond to the ACCC’s variation notice.

The SAU will form a key part of the framework that governs the price, ensuring they don’t increase more than CPI minus 1.5 per cent per year.

It also involves other terms for NBN Co in supplying services over its fibre, wireless and satellite networks to telecommunications companies, up until 2040.


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