NBN price rises could hit at Christmas

Long-mooted price rises for NBN services could come into effect over Christmas, if NBN Co manages to produce a long-term plan that is capable of regulatory approval.

The timing is outlined in a newly-published summary [pdf] of a meeting between internet providers, NBN Co, government officials and the ACCC, which was held mid last month.

At issue is acceptance of a new special access undertaking (SAU), the key document that sets price and non-price terms for the NBN until 2040, and of a revised wholesale broadband agreement (WBA), the commercial contract between NBN Co and retail internet providers.

NBN Co has made multiple attempts to produce an acceptable SAU variation; the ACCC has only two options each time a variation is lodged - to accept or reject it outright.

A key feature of the new pricing model is that it involves yearly wholesale price rises [pdf] - and with the process being where it is at now, the concern is shifting to when the first set of price increases will land.

NBN Co could lodge a revised SAU for formal consideration as early as August 14.

The ACCC wants to then expedite consultation - hoping to focus only “on new issues rather than issues already considered in previous consultation”, with a view to making a final decision by mid-October.

That could mean a new commercial agreement is ready for early December - which retail internet providers would then need to execute.

According to minutes of last month’s meeting, “participants generally agreed that the proposed timing would likely generate issues, as [retailers] did not have clarity on when they would need to implement pricing changes.”

“Several participants considered that retail price increases that come into effect over the Christmas period would be undesirable from an end-user perspective,” the summary states.

The timing could be problematic for NBN Co and internet providers anyway, as all sides tend to operate with skeletal resourcing in that period.

The summary notes that “any delay in NBN Co submitting its proposal or the subsequent consultation and approval process could push WBA-5 implementation to either February or March 2024.”

While the ACCC is hopeful that NBN Co will lodge an SAU capable of acceptance this time around, it also has a back-pocket option to set prices itself.

This was an option internet providers had asked the ACCC to use back in early 2022 when the deadlock on future pricing could not be broken.

“A participant inquired whether, if there were further delays to the SAU variation lodgement, the ACCC could use another regulatory instrument to set pricing at least for the first year to provide certainty for [retail internet providers] and end users,” the meeting minutes note.

“[ACCC commissioner Anna] Brakey noted that the option is there, however that the fastest way for certainty is for NBN Co to submit a proposal capable of acceptance.”