Telstra and Optus applauded NBN Co.’s revised pricing strategy, which would lower the cost of high-speed internet service for businesses and consumers and eliminate unpopular usage charges for lower-speed plans by next year.
NBN Co.’s previous proposal to lock in price increases of up to 3 percent above the inflation rate for certain plans was met with criticism from the industry watchdog.
Optus regulatory affairs vice president Andrew Sheridan says he welcomed the reset, and that the “signposts provide reassurance that we are heading in the right direction”.
Consumers and businesses using the new NBN model would initially see a drop in costs for 100mbps plans, which currently make up 18 percent of users.
However, because annual price increases based on the inflation rate, which the network believes are necessary to achieve financial and cost recovery goals, would still be in effect, network users would still have to accept them.
Despite Sheridan’s assertion that it is critical for Australians to receive quality connectivity at stable prices, he did not pledge to pass on to consumers any reductions in wholesale broadband prices Optus might see.
Telstra accused NBN Co, in January and said it was pricing itself and Australians out of the fixed broadband market, thus becoming a network “for only those who can afford it.”
It argued that NBN Co’s prices should be a lot lower and were being inflated by excessive build costs, partly due to past government policy.
