NBN boss Stephen Rue told the Commsday conference on Thursday: “It is without doubt in my mind a landmark outcome for the entire industry and for the nation.”
In a statement, ACCC commissioner Anna Brakey said: “We are satisfied that NBN Co’s latest variation proposal promotes the long-term interests of Australians, which is the primary objective of the test that we have to apply.”
Retailer Aussie Broadband introduced a note of reality on Friday, unveiling its latest price schedule that as expected foreshadows price increases at the lower end and a narrowing of the gap between the most popular 50 megabits plan and the NBN desired plan of 100 megabits.
The gap between the two has narrowed from 25 per cent to 11 per cent, which inevitably means more people will consider shifting to the higher speed.
They may also consider moving to a lower speed and, as with all price changes, it also represents a time to review plans, which may mean changing retail provider.
At the highest speed of 1 gigabit, the price will actually fall from $149 a month to $129 a month.
This compares to the most popular plan today, 50 megabits, where the price increases from $79 to $85, and the 100 megabit plan, where the price falls from $99 to $95. Telstra, by comparison, charges $95 a month for the NBN 50 plan and $110 for the 100 megabit plan.
One reason why the price is falling at the higher speeds is the NBN is finally scrapping its capacity or CVC charges on 100 megabytes and higher and is phasing them out over three years at the lower levels.
The end of CVC is a big step forward, ending the uncertainty for retailers and, along with designated service standards, the ACCC now has NBN under more scrutiny.
It has also helped at lower speeds with a price cap and dropping network interface charges, which makes it easier for smaller telcos to get into the game.
In 2030, NBN will be covering its own running costs including debt, which means a move onto regular ACCC led CPI-X price reviews.
In all, 70 per cent of NBN consumers, representing more than 6.1 million households, will be affected by the price rises, which is tough given increases in utility and bank charges.
Until 2026 when the new CPI-X regime starts, NBN will be able to lift charges with inflation each year, just like monopoly toll road supplier Transurban.
It helps when there is no wholesale competition.
If you want to download a 50 megabit computer game it will take you 2.5 hours if you have 50 megabit speeds, one hour if you have 100 and seven minutes if you have 1000 or one gigabits.
The NBN wants everyone on the fastest plan possible because that means more money in its pocket, but most people can get all they need under 50 or 25 megabits. It depends on how many devices are in your home, how many people are using them and what sort of use people are making of them.
Once the games are downloaded, there is no real advantage in having the faster speed, with the variable more about server location – whether in Australia or offshore.
Computer games and software development are more intensive and need higher speeds, but if you are just sending emails and reading newspapers on line you don’t need much speed.
Some tech-savvy folk just use their mobile hotspots to get internet access.
The industry rightly will tell you the number of broadband-based devices and data-intensive uses are only going to increase, which is why the NBN is opening more fibre-to-the-home options to enable faster speeds.
ACCC figures show the average home now has 22 connected devices and consumes 452 gigabytes of data a month, up from 30 gigabytes a month and five connected devices 10 years ago.
Some complain about internet speeds in Australia, to which the NBN can reply the technology is there if you want to pay for it.
Digital ball dropped
The federal government has dropped the ball on digital platform regulation with the ACCC now waiting more than 12 months for a response to its request for designation and industry codes to govern Google, Apple, Amazon, Microsoft et al.
ACCC chief Gina Cass-Gottlieb was none too subtle in her carefully chosen words at a KWM digital conference this week, saying: “The significant and entrenched market power of today’s leading platforms demonstrates what can happen when governments and competition regulators do not act early enough to respond to major new technological developments and disruptions.
“The rise of generative AI may be an opportunity to avoid repeating this pattern.”
Treasury and Attorney-General Mark Dreyfus are holding plenty of roundtables performing to the old adage that activity is a substitute for achievement.
The writers strike in the US and European moves to act to regulate AI begs the question: just when will Canberra wake up.
Treasurer Jim Chalmers was also up to his old game of reviving the ACCC quarterly airline monitoring as a failed attempt to quieten complaints about the anti-competitive blocks on Qatar expansion.
Far better to make the right decision in the first place.
Ruling on takeovers
Australian takeovers are governed by chapter 6 of the now revised companies code with ASIC empowered since 2000 to make adjustments where necessary.
The end result is no single source of rule and instead a combination of class orders, legislation and Takeover Panel rules.
ASIC is doing its bit but maybe should take over the job entirely.
Herbert Smith Freehills partner Rod Levy rightly questions whether the present complexity is helping business when it can be solved. He suggests one “solution might be to restate the entirety of Chapter 6 (and related provisions) in a single ASIC class order. It would then be a single stand-alone version of the law. That would be convenient for anyone searching for the relevant rule and would reduce compliance costs, not to mention errors that may occur when people do not locate the correct rule.
ASIC could do this without troubling parliament.
US ‘talking to China’ on tariffs, baseline levies to stay: Trump
Hosting Italian Prime Minister Giorgia Meloni in the Oval Office, Donald Trump said China had ‘reached out’ over levies, and warned ‘substantial tariffs’ will remain on US imports.
BOQ’s woes highlight squeeze in banking sector
Australia’s smaller banks are confronting the triple threat of low mortgage margins, rising costs and the need to upgrade technology.
Much to the relief of the telecommunications industry, on NBN’s third attempt the ACCC approved variations to its governing structural access undertaking, which will set the price and service rules for the next 17 years.