This is probably the last review using the method developed and used since 2008. More importantly, retail and NBN pricing are pulling in different directions. While I have a lot of issues with CVCs, abolishing them is not the answer.
The review of September 2018 prices shows that there has not been much movement on the major issues identified with retail broadband prices:
1. Lack of affordable entry-level prices – this is still an issue despite the new NBN Entry Level Bundle; but too recent to be reflected in the results discussed here.
2. Poor take-up of high speeds – slightly better thanks to new High Capacity Bundles.
3. Increasing pressure on ISP margins due to CVC pricing (leading to under-provisioning) – still true, with full impacts felt when the migration to NBN ends.
4. The growing threat (to the NBN) of increasingly competitive mobile broadband – no change.
More details at Economuse 2018-10-04
On 18th September, the NBN published details of its much anticipated “discounted” Entry Level Bundle (ELB). It is very disappointing. It does not provide an affordable entry-level plan; which will make its job of holding users in the migration from copper services more difficult. see Economuse 2018-09-21
I gave verbal evidence to the Joint Standing Committee on the NBN in June 2018. The follow-up advice responds to its request for more details on traffic pricing, precedents and the Canadian decision about wholesale pricing. It includes the 2017 Review of the Australian retail broadband market.
The NBN is in the middle of yet another industry consultation on CVC pricing. Based on its press releases, the bundling of AVC and CVC pricing is a revenue neutral exercise. There has been an enthusiastic adoption of its bundled 50Mbps service. But, will its last beyond the NBN’s special promotion period?
For more, see Economuse 2018-01-29