NBN pushes ahead with price cuts

NBN to ease capacity-pricing burden for RSPs

NBN will push ahead with a discounting scheme for one of the major charges it levies on retail service providers (RSPs) that sell services over the National Broadband Network.

NBN late last year carried out an industry consultation on the Connectivity Virtual Circuit (CVC) charge. The CVC is a capacity-based pricing scheme that is based on the shared bandwidth provisioned for an RSP’s customers.

RSPs also pay access charges when they sell services over the NBN.

NBN’s CEO Bill Morrow will today announce in a speech at the CommsDay summit that the company will push ahead with the previously mooted dimension-based discount scheme.

That scheme will offer a discount on the CVC. Instead of a volume-based discount scheme for the CVC, NBN will offer a tiered series of increasing discounts based on capacity per end user.

The more capacity provisioned per end user, the greater the discount. NBN has previously indicated it hopes that this will encourage RSPs to ensure they are provisioning adequate capacity.

The discount scheme will kick in on 1 June.

Initially, the scheme will be based on an industry-wide discount, with NBN intending to examine the potential for an RSP-based discount. NBN has indicated that the decision to initially go with the industry-wide scheme is based on wanting to implement the discounts as quickly as possible.

The initial CVC discount is expected to be in the region of $1.75.

The new model will be in place for two years and then reviewed.

Morrow is expected to tell today’s conference that the average downloads of National Broadband Network end users has increased from around 75GB in February 2015 to 125GB per month — an increase that has presented significant challenges for RSPs.

The new discount model is intended to offer some pricing certainty for RSPs, the CEO is expected to say, with the hope that RSPs look at offering higher volume plans to end users.

NBN has modelled the impact of the discount scheme on its finances. The company hopes that over the long term, the scheme will deliver increased revenue through increased use of the network.

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags broadbandNBNNetworkingnbn conational broadband networkNational Broadband Network (NBN)

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Rohan Pearce

Rohan Pearce

Computerworld
Show Comments

Essentials

Mobile

Victorinox Werks Professional Executive 17 Laptop Case

Learn more >

Exec

Budget

Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?