More customers now on faster NBN plans

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More customers now on faster NBN plans

More than half of all NBN connections are subscribed to speed plans of 50Mbps or more, a report from the Australian Competition and Consumer Commission reveals.

The commission’s latest quarterly Wholesale Market Indicators Report says higher speed services represent 56 per cent of all NBN broadband connections, or almost 2.7 million subscribers across Australia.

The ACCC credits the uptick in higher speed services to NBN Co’s promotional Focus on 50 wholesale pricing offer in 2017, which was later replaced with wholesale bundle offers for 50Mbps and 100Mbps services.

“It’s good to see that retail services providers have been able to offer higher speed plans at more affordable prices – thereby giving many consumers more choice,” ACCC chair Rod Sims said.

The report, which covers the quarter ending in December, also reveals that residential broadband connections rose 6.8 percent to reach 4.8 million total subscribers.

Of that, just over 1.16 million customers, or 24 percent, remain on the most basic 12Mbps service.

“While there is clearly a trend towards higher speed plans, it is important that consumers continue to have the option of affordable, basic plans, which still make up one quarter of all services,” Sims said.

CVC also fell on a per-user basis over the quarter, from 1.71Mbps to 1.65Mbps, with the new wholesale plans at the end of the Focus on 50 promotion a likely contributor.

Meanwhile RSP market shares remained stable during the period, with smaller retailers increasing their collective share from 6.3 percent to 6.6 percent, or an additional 34,000 services.

Earlier this week, telco consumer advocate group ACCAN urged political parties to create wholesale broadband concession prices for financially stressed households.

The group proposed a 50Mbps unlimited broadband service offered at a wholesale price of $20 per month, with households estimated to pay around $30 per month for the service.

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