Fact check: Clarifying information on Fixed Wireless Bundles Discounts

Following media coverage about NBN Co’s wholesale pricing consultation of Fixed Wireless Bundles across regional ABC radio on 21 June 2018, NBN Co wants to clarify information being reported.

NBN Co is currently consulting with internet and phone providers on a new fixed wireless bundle discounts. This bundle would be in addition to the existing pricing options for fixed wireless services – not in place of.

Following feedback from initial industry consultation, we are discussing options on a choice of bundles for both fixed line services and fixed wireless services, which will allow providers to manage their total customer base on one CVC (bandwidth) versus managing a bundled CVC offering and keeping the old pricing bandwidth running concurrently.

This is being considered to help providers better manage the cost of providing parallel CVCs across different technologies.

Based on the draft wholesale discounts included in the current consultation paper, the wholesale bundled offers on the most popular speed tiers – being the 12/1 and 25/5 nbn services – represent a reduction from the current wholesale charges for those services on average depending how internet and phone providers manage their high data usage customer base.

The proposed wholesale fixed wireless bundle offers for 50Mbps will be slightly more expensive than the fixed line bundle discount, but there is only currently around 9 per cent of Fixed Wireless end user on this speed tier. NBN Co’s proposal for CVC (bandwidth) inclusion in the discount bundles is the same for both fixed line and Fixed Wireless technologies.

If the new bundle discounts are introduced, providers will have the choice to take up them up, or stick with the existing pricing that is available.

It is also important to remember NBN Co does not set retail prices, however its various wholesale discounts are intended to facilitate internet providers being able to introduce attractive retail pricing for phone and broadband services to end users.

We are still consulting with industry on these bundled discounts and will have further updates in the coming months.

NBN Co has previously pointed out in our Blog section in more detail why we are consulting with industry on new wholesale discount offerings.