NBN's new discount model for its Connectivity Virtual Circuit charge is launching today, with the hopes it will help improve consumer experience on the network.
NBN explained in a statement that the new model "calculates the level of CVC discount based on an individual retailer service provider's average capacity purchased per end-user each month; previously the discount was based on an industry average".
NBN says the new discounting model will encourage higher quality services - by decreasing the CVC cost per unit for retailers - as usage increases.
"The new discount model is good news for both retailers and consumers, " said Sarah Palmer, NBN Executive General Manager for Product and Pricing. "It will encourage the supply of more bandwidth for consumers at home and at work, leading to a better internet experience overall."
Palmers says it will also deliver "greater forward price certainty" to retailers, allowing them to better manage their cost base, and support usage growth on the network.
Under the industry average model retailers had been paying $15.25/Mbps per CVC unit, NBN says, but under the new model they will "be able to achieve discounts" based on how much CVC they purchase per end-user. We are looking into exactly what kind of discounts NBN are talking about here.