NBN Co boosts retail broadband capacity as more people work online

NBN Co will provide extra bandwidth to retail service providers in response to increased demand due to the COVID-19 pandemic.

The National Broadband Network provides high-speed broadband through retail service providers like Telstra .

NBN Co said on Wednesday it would freeze its charges and provide extra bandwidth to retail providers for three months in response to increased demand stemming from the COVID-19 pandemic.

The government-run company late on Wednesday said it would boost its CVC (connectivity virtual circuit) program, allowing retailers like Telstra and Aussie Broadband to order up to 40 per cent extra capacity for their customers over the next three months but pay at February rates.

“The (40 per cent) is equivalent to the higher end of increased data bandwidth requirements that we have seen in countries such as Italy, which have mandated work-from-home arrangements,” NBN boss Stephen Rue said.

“The additional capacity pricing relief will be offered to RSPs at no additional cost and will help support significantly greater data use on the network throughout the day and during peak evening times. The offer will be made available to the industry from Monday in time to meet the steadily growing data consumption patterns of residential and business customers.

“NBN Co will play the critical role it was set up to fulfil, ensuring Australia’s wholesale digital infrastructure is robust, resilient and reliable. We are confident that this immediate response will make a significant difference.”

NBN had said that its traffic last weekend was up around 5 per cent on usual, but it’s expected that number will rise significantly as staff across the economy increasingly work remotely.

IT industry veteran Bevan Slattery earlier on Wednesday called on NBN Co to ramp up CVC capacity for retailers, in an open letter addressed to Prime Minister Scott Morrison, NBN Co chief Stephen Rue and company chairman Ziggy Switkowski.

“Can (NBN Co) please temporarily double or even triple the amount of CVC capacity that is provided under the existing NBN residential bundles to allow for a nation that is going to be doing everything online at the same time in the very near future,” Mr Slattery said in the post.

“Parents will be working from home, while kids will be studying at home — both using video, placing massive demands on providers who have offered plans that are designed for normal conditions. I'll shout you a bloody cold beer when I next see you if you could!”

The boss of the Australian Communications Consumer Action Network had also called for action from the NBN.

“Ordinarily, consumers are concerned about the download speeds that their home broadband service can achieve,” Teresa Corbin said in a statement.

“However, with more people working from home, there’s going to be an increased demand for upload speeds as well.

“It’s important that you check what plan you are on so you’re aware of what speeds you should be getting — both upload and download. If you’re not getting what you’ve paid for, contact your telco to request a free line-speed test. It’s their responsibility to ensure that your service is capable of achieving the speeds they’ve promised.”