NBN extends data giveaway

Demand for broadband remains sky high, with retailers gaining 40 per cent extra free capacity until August.

NBN contractor Foxcomm install an FTTN on the corner of Parry and Darby Street Cooks Hill, Newcastle NSW.

NBN Co is extending the extra capacity it's giving for free to providers until August, with Australia's internet usage remaining high even as COVID-19 lockdowns lift.

In March the company first announced it would give up to 40 per cent more capacity to retails where required, so they could handle increased COVID-19 related demand.

On Thursday NBN Co said it would extend that offer until August 19, and that more than $40 million worth of capacity credit had been doled out since the beginning of the program.

Peak downloads are still about 12 per cent higher than their pre-COVID levels.

“We are proud to have supported the telecommunications industry and the nation through this pandemic as Australians increasingly relied on their home broadband connections for work, study and entertainment,” NBN Co's chief customer officer Brad Whitcomb said in a statement.

“Alongside this capacity boost, we also increased data download limits for Sky Muster satellite customers and announced up to $150 million of financial relief and assistance packages to help keep low-income households and small and medium businesses facing hardship stay connected.”

“While we must all remain vigilant to keep the spread of COVID-19 contained, we are encouraged that social distancing restrictions are easing and many Australians are starting to enjoy a more normal way of life again.”

Mr Whitcomb said the NBN, which is due to be completed within weeks, had added 400,000 new customers since March.

“In recent weeks we have seen data demand on NBN’s main wholesale network settle into a new normal as more Australians head back to work and school," he said.

“Just as it is important that the nation, businesses and schools get back to a more normal way of life, it is important that internet providers also have the certainty they need to get back to their usual operations.”

Labor's communications spokeswoman Michelle Rowland welcomed the capacity extension.

“Labor welcomes steps by NBN Co to extend capacity to retail providers until mid-August," she said.

“This is a responsible move that will assist industry and consumers, as social distancing restriction begin to ease. We argued that a CVC snapback was not practical and today’s announcement is evidence of that.”

As The Australian first reported, Netflix and other streaming services agreed to temporaily reduce the quality of their services to help the NBN cope with skyrocketing usage.

Watching high definition films and shows on Netflix uses about 3GB of data per hour - three times more than standard definition – and it's estimated that streaming services including Netflix account for between 70 and 80 per cent of Australian internet traffic during peak times.

The Australian also reported last week that NBN Co will radically increase consumer download speeds due to more Australians working at home. Some users will have access to a theoretical speed of close to 1000 Megabits per second (one Gigabit) on the “Home Ultrafast” tier, one of three new speed tiers being rolled out.