NBN resellers improving bandwidth after temporary CVC pricing offer - ACCC report

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NBN resellers improving bandwidth after temporary CVC pricing offer - ACCC report

The Australian Competition & Consumer Commission has found that NBN resellers are buying up more bandwidth, reporting a 38 percent increase in uptake of connectivity virtual circuit (CVC).

The regulator’s latest Wholesale Market Indicators Report found that CVC acquired by NBN resellers in the three months up to December had gone up from 1.11Mbps to 1.53Mbps per user since the quarter ending September 2017.

This comes after NBN Co offered resellers a temporary credit offer for acquiring 50 percent more CVC per user, which also included selling 50Mbps connections for the price of 25Mbps connections.

“We are pleased to see such a large jump in the CVC acquired by retailers from NBN Co this quarter. With this level of CVC consumers will have faster broadband speeds and hopefully less congestion during peak evening periods,” ACCC chairman Rod Sims said.

“We hope NBN Co and retailers can continue to work together to ensure the level of CVC needed for a good customer experience is maintained.”

He added that NBN Co responding to resellers' concerns about CVC pricing likely had a positive impact on the amount of CVC being acquired, which in turn will benefit consumers through better quality broadband.

The report also found that the number of services connected to the NBN grew 14 percent from just over 3 million to 3.47 million in the quarter ending in December.

Telstra remains NBN Co’s largest reseller, accounting for 49.3 percent of all wholesale services supplied.

The report also found that five access seekers were connected to all of NBN Co’s 121 points of interconnection (POIs), and other players have also continued to increase their access in the quarter.

“We're pleased to note a fifth broadband provider is now connected to all 121 points of interconnect, with other smaller providers well on their way,” Sims said.

“This is great news for competition and, for Australian broadband customers, it means greater choice in which provider to connect with.”

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