ACCC delays NBN Co deal

The watchdog has pressed pause on the agreement that regulates how broadband services are provided over the NBN.

The National Broadband Network rollout has been criticised

The Australian Competition & Consumer Commission has pressed pause on the agreement that regulates how broadband services are provided over the National Broadband Network, withholding its final decision until NBN Co and the telcos agree on pricing.

NBN Co has been trying to update the special access undertaking, which sets the terms and conditions for its operations until 2040, since June this year, to accommodate the shift to multiple access technologies.

The current SAU, accepted by the ACCC in 2013, only covers fibre-to-the-premises, fixed wire­less and satellite technologies.

NBN Co submitted its revised SAU agreement to the ACCC in May last year. This was summarily rejected by the ACCC in March this year, with the regulator stating that a number of the proposed changes would not promote the long-term interests of end users. NBN Co lodged an amended version in June.

The ACCC’s decision to let the current conversation between NBN Co and the retail service providers on pricing run its course puts the emphasis on NBN Co and the RSPs resolving the ongoing acrimony around the connectivity virtual circuit charge.

CVC has been a key frustration for telcos, with RSPs citing the charge as a hurdle to them buying the bandwidth needed to provide high-speed services to households.

NBN Co has steadily reduced its CVC charge but cannot completely remove it given its need to deliver a return to the federal government. With NBN Co currently in consultations with the RSPs on a more viable pricing construct, ACCC boss Rod Sims said that an industry outcome was in the best interest of end customers.

“There has been a lot of discussion about NBN Co’s pricing, particularly around capacity issues and whether it is impacting consumers’ experiences on the NBN.

“We think an industry outcome on NBN pricing is the best solution and preferable to a regulatory outcome,” Mr Sims said yesterday.

“We do not think it is appropriate to make a decision on the SAU variation until the pricing consultation is further progressed.”

“If that process results in change to the pricing model and further changes to the SAU arrangements are required, then NBN Co will need to submit a new SAU variation to the ACCC,” he added.