NBN Co is set to offer National Broadband Network (NBN) retailers discounts and rebates on higher speed plans, following the conclusion of its additional capacity offer in response to the COVID-19 pandemic.
Part of the new round of offers is “some” additional Connectivity Virtual Circuit (CVC) capacity at no cost, as well as wholesale pricing rebates, which NBN Co has framed as “discounts” for internet retailers upgrading customers to higher speed plans.
The capacity additions, which come as part of its ‘Focus on Fast’ marketing campaign, are for its 100/40 Mbps, NBN Home Fast, NBN Home Superfast and NBN Home Ultrafast plans from 1 December for internet retailers that opt into the fourth version of NBN Co’s Wholesale Broadband Agreement (WBA4).
Meanwhile, the rebates, which are on offer from 1 February 2021 for six months, are applicable for its 50 Mbps speed tier, as well as the plans receiving capacity additions, and range from $2 to $24 per month.
While these changes come at the end of NBN Co’s additional capacity offer, first announced in March and then extended three times to eventually end on 30 November, the broadband network builder is also offering transition credit to eligible internet retailers for two months.
Essentially, retailers will have their September 2020 CVC charges for fixed line, fixed wireless and Sky Muster satellite services compared to those from February 2020 and then be offered 75 per cent of that amount in December, followed by 50 per cent in January 2021.
The decision to transition internet retailers away from the initial capacity offer is due to peak data demand returning to normal forecast levels of growth, NBN Co claimed.
Meanwhile, the new round of offers is to “provide the industry with greater cost certainty over the critical summer holiday period,” according to the broadband network builder’s chief customer officer Brad Whitcomb.
“The NBN network continues to perform well and by offering the additional COVID-19 CVC Credit to internet retailers at no extra cost for nine months, we have provided an important shock absorber to the industry. This has given internet retailers time to adjust to growth in data demand," he said.
“The offers we are working to introduce on 1 December 2020 play to the increasing strength and capabilities of the national broadband network to meet customer demand for higher speed services.
“The underlying trend that sees organic growth in data demand doubling every four years will require an industry-wide response, and we will commence our annual consultation with internet retailers early in 2021.”
These consultations are expected to occur in February 2021, with it to propose the issuing of its new rolling two-year wholesale pricing bundles discount roadmap under WBA4 at the conclusion of that process.
Detailed terms and conditions, as well as the announced incentives, are currently being worked on, and are expected to be available to the industry “soon”, NBN Co claimed.
Credit: NBN Co