According to Telstra, under the current pricing, the predicted growth in data use of Australian homes and businesses “will significantly increase the effective per customer price over the next three years”. By the end of the NBN migration period, Telstra expects the effective wholesale price for 50 Mbps bundles to be AUD 52 – AUD 55, and the effective price for 100 Mbps bundles to reach AUD 73 – AUD 75. At those prices, once sustainable margins are added, the risk is that retail prices will increase to a point they become unaffordable for some customers, Telstra also said.
Telstra believes that an AUD 20 per month reduction of the standard plans so the all-inclusive wholesale price is AUD 35 for a 50/20 plan and AUD 50 for a 100/40 plan would bring NBN’s pricing closer to international benchmarks, and provide greater incentives for retail providers to compete in and grow the market for fixed broadband in Australia.
Telstra also expects the reduction of prices of 250 Mbps, 500 Mbps and 1 Gbps services to under AUD 100 to make buying these services more realistic for consumers that need higher speeds, and enable retailers to more effectively market and communicate the benefits of these higher speed services to mass-market consumers.
Telstra is also proposing the introduction of a voice-only product at AUD 10 per month, replacing the existing 12/1 entry-level plan. The operator also plans to work with NBN Co and consumer groups to establish a targeted discounted broadband offer.
Telstra claims its customers are telling it that this is what they need and it would particularly address the needs of vulnerable and low-income customers, including aged pensioners. Telstra claims that these changes will optimise the social and economic returns of the investment in the NBN, benefit broadband customers through keeping the prices affordable, and address the challenges facing the industry in the transition to the longer-term operation of the NBN.
According to NBN Co data, construction of the NBN network is more than 80 percent complete. Back in February, the company announced that nearly three in four homes and businesses were able to connect to services over the NBN access network. With the company due to complete the network rollout in 2020, more than 99.5 percent of Australia’s households and businesses are currently either in design, construction or are already able to order a service over the NBN access network. More than 8.1 million homes and businesses can already order a service from their preferred retailer.
