TPG Telecom has predicted the price of 50Mbps and 100Mbps companies on the NBN might be the identical inside a yr if a brand new pricing mannequin is allowed to cross.
In a submission [pdf] printed by the ACCC, TPG Telecom mentioned that one impact of the present particular entry enterprise (SAU) pricing proposal shall be to take away any value distinction between the 2 tiers.
“Underneath the SAU variation proposal, NBN Co is proposing to instantly enhance costs for the 50/20 Mbps velocity tier,” the telco mentioned.
“TPG Telecom’s preliminary evaluation reveals the SAU variation proposal might see the common price for the 50/20 Mbps velocity tier being the identical because the 100/20 Mbps velocity tier inside one yr, thereby rendering the 50/20 Mbps velocity tier out of date over time and eradicating any affordable value relativity between these two merchandise.”
It is a mannequin that NBN Co has used repeatedly to get the most important proportion of its customers onto greater velocity tiers.
The corporate beforehand priced 25Mbps and 50Mbps services the same to encourage mass adoption of 50Mbps.
Extra just lately, it has been used inducements such as six months of free upgrades to greater velocity tiers – a form of ‘try-before-you-buy’ supply – to get extra customers off the decrease velocity tiers.
Nonetheless, it nonetheless faces some constraints in enabling this type of mass migration to 100Mbps, provided that some customers have copper-based connections that can’t obtain these speeds.
TPG Telecom mentioned that the proposed SAU value modifications “will lead to materials modifications within the wholesale and retail broadband markets.”
It added that there “stay various unknowns” round how some features of the value proposal will work.
NBN Co added to that previously week by declaring its pricing proposal to be a package deal, with value rises on the 50Mbps tier successfully subsidizing higher service high quality for 100Mbps-plus customers.
TPG Telecom made its convergence feedback as a part of an inquiry into circumstances imposed on non-NBN operators for fixed-line infrastructure-based competitors with NBN Co.
