OnDemand WTP Pricing Research

NBN to start price reviews next week | The Sydney Morning Herald

The industry has long been furious at the expensive connectivity virtual circuit (CVC) charges NBN forces them to pay to guarantee bandwidth for customers. Many believe they will be impossible to sustain profits as services like Netflix increase internet usage and speed demands.

But NBN chief executive Bill Morrow on Monday said the company would launch a formal consultation next week aimed at getting feedback from internet service providers to help work out a new pricing model – a move that could completely reshape the industry’s profitability.

“We anticipate by the end of the year having all of the feedback from the retail service providers to where we can to examine what we need to do from the start of the year,” he said.

“We’ll make the determination once we have all of the facts.”

Striking the right balance

Getting the balance right is vital. If NBN cuts its prices and earnings by too large an amount, it could incur a massive loss and add billions of dollars to the budget deficit.

But Mr Morrow told Fairfax Media not to expect a final proposal before the end of this year.

“Don’t expect us to issue something in January saying ‘here’s the price structure going forward [but] hopefully soon thereafter,” he said. “The RSPs [retail service providers] are anxious to have us look at the pricing construct because they want to be able to know what the future looks like so they can plan accordingly.

“But until we see what that feedback coming back looks like, I can’t tell you when it’ll be … and I think in January we can be more definitive with you in terms of what timeframe you can expect.”

Read complete article here:

NBN to start price reviews next week.

Post a Comment

WP-SpamFree by Pole Position Marketing