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NBN prices facing crunch time as telcos agitate for cheaper speeds | Sydney Morning Herald

Although NBN reduced CVC prices to $15.75 in June, it would still cost about $637 per month to supply 100 Mbps at all times of day, according to one source. Consumers won’t pay this price, so telcos provide enough to get 100 Mbps during quiet times and consumers get slower speeds at peak times.

The industry is eager to speak out about pricing problems and are publicly calling for NBN to reduce the CVC down to as low as $4 per Mbps per month.

Telcos won’t promote faster speeds unless they can afford to deliver those speeds. Photo: Alex Ellinghausen
NBN will talk to telcos next month about ‘re-balancing’ prices, executive general manager of pricing at NBN Co, Sarah Palmer, says.

“As a wholesaler, we are acutely aware that we are only going to be successful if our retailers are successful. And they are going to be successful if Australian consumers are getting fast broadband quicker and using it more,” Ms Palmer said.

NBN’s corporate plan includes revenue forecasts that assume the CVC price will decrease over time, but Ms Palmer won’t put a dollar figure on it.

“The commitment to reduce CVC price as usage grows is absolutely baked into fundamental principles of NBN and it’s all about making sure that broadband is affordable for homes and businesses,” she says.

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NBN prices facing crunch time as telcos agitate for cheaper speeds.

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