NBN Co wants more people on faster plans

THE organisation rolling out the National Broadband Network (NBN) has changed its pricing in an effort to ultimately get people to purchase faster internet speeds.

At least one retail service provider (RSP) has changed its plans as a result.

Last week, NBN Co announced it was offering discounts on the price it was charging RSPs, which is intended to make RSPs pass on the savings and offer cheaper prices for the NBN’s higher-tier services.

More than 80 per cent of homes and businesses now on the NBN are purchasing wholesale speeds from RSPs of 25 megabits per second (Mbps) or lower, but NBN Co wants the 50 Mbps plan (the next highest tier) to be its “flagship” service.

NBN Co chief executive officer Bill Morrow said Australians were funding the NBN but the majority, as end users, were “purchasing plans that give them no better – and in some cases lower – speeds than they can get from their legacy network”.

“We want all Australians to experience the benefits of fast broadband and the economic growth, job creation, and social inclusion that it unlocks.

“Combining access and bandwidth charges into one simple price point will not only promote the take-up of plans based on higher wholesale speed tiers and position the NBN 50 bundle as our flagship service, but it will also trigger the triple benefit of improved end user experiences, provide more affordable pricing options for retailers and support NBN Co’s revenues in the longer term.”

On the same day, telecommunications company TPG revealed it was discontinuing its 25 Mbps service but offering a 50 Mbps service at the same price.

“As a result of NBN Co adjusting their wholesale prices, we have adjusted our retail plans across our brands, resulting in faster speeds at cheaper price points,” TPG chief operating officer Craig Levy said.

TPG also announced it would now publish the typical speeds experienced by its customers during the evening peak of 7-11pm – one of the six best practice principles for RSPs developed earlier this year by the Australian Competition and Consumer Commission.