Australians continuing to opt for higher net speeds, NBN Co says

CHANGES made to NBN wholesale prices have continued to provide a much-needed boost for the network — and its good news for end users.

AUSTRALIANS are opting for faster internet in droves, according to new figures released by the company delivering the nationwide broadband network.

The latest NBN Co monthly progress report released on Monday showed seven in 10 new orders on the network seek wholesale speeds of 50 megabits per second or higher.

The report shows a trend towards end users opting for higher speed tiers continues — something that promises to benefit the rollout and reduce congestion.

In the early stages of the rollout, a vast majority of customers signing on to the NBN were opting for the cheaper, lower-speed plans, putting a strain on NBN Co’s bottom line as it tries to work towards profitability.

At one point, about 85 per cent of Australians were choosing low-speed tiers of 25Mbps or 12Mbp.

But changes made by the NBN wholesaler to how it charges ISPs like Telstra, Optus and TPG to buy space on its network have encouraged take up of the higher plans.

The demand for higher speeds has almost tripled, increasing from 16 to 44 per cent.

NBN Co attributes the dramatic take-up to the network’s new wholesale discount options.

The options support internet providers in reducing bandwidth congestion and selling higher speed broadband retail plans.

The report also finds the network rollout is ramping up in Australia’s capital cities.

More than a quarter of a million new homes and businesses in metropolitan areas can hook up to the NBN access network within the next three months. Average congestion on the network has also reduced from more than five hours to less than 30 minutes per service, per week compared to this time last year.