The ACCC Allows 'NBN Tax' To Be Passed On To Customers

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The Australian Competition and Consumer Commission has made its final decision regarding the regulation of high-speed internet services supplied by non-NBN fixed line networks - and if they can pass the "NBN tax" charge to customers.

In a change from the draft decision, the ACCC is letting non-NBN networks to pass on the Government's proposed Regional Broadband Scheme charge on their customer lines to help fund NBN's supply of non-commercial regional fixed wireless and satellite services.

The Government Wants You To Pay An NBN Tax

The government is pushing for a $7.10 levy to be implemented on the ISPs that deliver Australia's superfast fixed-line broadband, to help pay for the wireless and satellite portions of the National Broadband Network. That

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The internet services subject to the decision are called the superfast broadband access service and the Local Bitstream Access Service. These are wholesale "superfast" fixed-line broadband services capable of download speeds of normally 25 Mbps or more. They are supplied on non-NBN networks and provide similar services to the NBN.

"Our view is that the regulated prices based on the NBN prices may not have allowed these network providers to recover their reasonable costs if they were also required to absorb the proposed RBS charge," ACCC Chairman Rod Sims said. "One of our main aims has been to ensure that internet retailers and their customers supplied via the non-NBN networks will not be worse off than if they were supplied internet services by the NBN."

Under the final decision, the initial prices for providers other than Telstra will be $27.00 per port per month plus between $8.00 and $17.50 per Mbps per month for aggregation to a point of interconnection. The aggregation price payable will vary by retail service provider depending on the average amount of aggregation capacity that a RSP purchases per port.

Sims says the prices have been set in line with NBN prices, and will change with NBN prices over time to reflect the growth in traffic across the high speed internet sector. Sims says this will continue to drive down the average cost of supplying services.

"We expect that these price changes will help deliver better service performance for customers of non-NBN networks as they will allow retailers to provide faster services at a lower average price."

The ACCC says the very small providers of some high-speed internet services (supplying less than 12,000 customers) will not be regulated under this decision on the basis that it would apply an unreasonable burden to them with little benefit to customers. Terms set in the final decision only apply if access providers and access seekers cannot reach their own commercial agreements on prices and other terms for the relevant services.

The networks largely supply high-speed internet services in new housing estates and apartment buildings in central city locations. In many areas they supply internet services where the NBN does not offer services and provide customers in these areas with a limited choice of retailers of internet services. The major providers of these services are Telstra (South Brisbane and Velocity Estates fibre networks), TPG, Vocus, LBN Co, Opticomm, and OPENetworks.

The ACCC says the decision sets wholesale prices and other terms and conditions "that are expected to provide customers with a larger number of retailers to choose from and deliver them better prices and services".

The full final decision can be read here.

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Comments

    Of course they are.

    I think the ACCC should be renamed the teclo advocate general.

      Why should the business be penalised and pick up the slack for something they have no control of? You all voted for this -- if it didn't happen now under Coalition, it would for sure happen in future under ALP.

      Last edited 26/05/17 10:59 am

        if we ''all voted for this'' then the coalition would have won 100% of the votes.. But they didn't..

        Or you know, The LNP could be competent and not have to require a tax in the first place. But being competent is beyond the LNP. Any party that thinks the use of copper is a viable option for the future of our network is clearly inept.

          You know what this "tax" is for right?

          It's not to build the network. It's to subsidise the cost of SkyMuster so that people in remote areas can have a decent allowance without having to sell a kidney and firstborn.

            Again, It would not be needed if the LNP was competent at building infrastructure. Had it been properly done the tax would not be needed int he first place. But you know, LNP has blown out costs with outdated technology that will cost us even more in the long run with maintnence.

              All the LNP has done is made it transparent instead of hiding it in the cost like Labor was planning on doing.

                "Hey guys, I know our network is costing more than double what we promised, And it uses outdated technology, But we are transparent guys! So its all okay!"

                  You are absolutely insane if you didn't think this would happen under ALP. Maybe doubly insane. They love taxing the hell out of everything

          The LNP could be competent and not have to require a tax in the first place. But being competent is beyond the LNP

          And the ALP is any different? Like I said before; the orchestra has been changed but not the song book.

          If anything, the ALP proved to be even less competent by letting the costs blow out and washing their hands of the matter when it became too hard for them to manage.

          At the end of the day, what is being missed here is neither side care about a network for the people; they only want to use the network as a bargaining chip for votes.

            Yes they are. The ALP didn't wash their hands of anything, they continued the rollout without any cost blowouts at all. All unforeseen costs were contracted to be on their subcontractors and Telstra.

            Then we got the LNP coming in and stalling the rollout for years while they messed around changing the project completely partway through the process. That of course adds to the cost. Then renegotiating to take on those costs themselves that they didn't need to before. Making a massive cost blowout entirely on Tony and Malcolm that was in no way necessary. And was in no way happening at the time otherwise.

              Yes they are. The ALP didn't wash their hands of anything, they continued the rollout without any cost blowouts at all.

              You keep telling yourself that. Not gonna change what really happened but you are within your rights to do so.

            I didnt say ALP was absolved of any blame. They share a load as well. However. the LNP pigheaded reliance on out dated technologies and blaming labor whenever something they do goes wrong makes them the kings of incompetence.

              Depends on what they are blaming Labor for.

              The original claim was the Multi-Technology-Mix was the remaining option because Labor made a mess of the budget.

              Back then this was true.

              However, fibre technology and fibre to the curb have become very economical especially the latter which should at least keep the original vision but fit within the problems with the budget.

              Incompetence means they are unable in any means to be successful. The Coalition can be successful given the newer options, they just choose be ideological instead. Which is worse because not only does it show they are anything but incompetent, they let their pride get in the way of everything else.

              And yes, I know Labor is guilty of the same fault but if I had to cover every fault with these two alone, my post would be longer than a George R.R. Martin novel (though more to the point and easier to read).

              The main problem is even if the Coalition have very good ideas, Labor is likely to be spiteful and use it's on-again, off-again partnership with the Greens to block the move and then have the nerve to tell the public the Coalition are not doing anything to repair the status quo.

      Do you know what the ACCC does?

        Rubber stamps telco requests, approves mergers that are detrimental to competition, put rules and regulations in place to hamper competition. The normal stuff.

          So your answer to my question is no. That's all you had to say.

            Sure, because the ACCC didn't approve the TPG/iiNet merger? And they didn't require 121 POI for the NBN? And they didn't just approve passing on an unfair tax to all customer?

              Still have no idea. Here, go check it out. See exactly what they do. 3

              https://www.accc.gov.au/

              Telecommunications is the least of their responsibilities.

                Yet they continually stick their nose in it and stuff it up for the country as a whole.

    if it was funding a fibre rollout it probably wouldn't bother me so much.. but it's funding a copper based model that will be obsolete before it's even completed.

    go 'straya! *sigh*

      It's actually funding 2 brand new high capacity satellites and a regional LTE fixed wireless network capable of 50Mbps speeds for regional users. Nothing to do with the FTTN/FTTP/FTTC/FTTB pissing match that everyone seems to get into on NBN posts.

        It's only been added because the FTTN messaround has lowered the profitability of the company requiring them to take additional funding from elsewhere that was not previously needed. So yeah FTTN does have something to do with it.

    Wow , back in Australia for a couple of months and I can't believe how screwed up this place is, oh and the internet here is crap and the price is incredible, glad to be back home soon , I could never live in oz again.

      Go to NZ. Much better place. Good internet and Sensible Politicians. Not like the lot we have in charge right now

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