In its negotiations with the industry, NBN Co. is unwilling to provide greater service standards for 50Mbps subscribers in exchange for a scheduled price increase, potentially creating a flashpoint.
The operator claimed it should be able to charge more only to maintain its present service levels and claimed it does not want to generally foster the assumption that price increases translate into improved baseline service standards.
The problem has surfaced recently as a result of NBN Co.’s intentions to raise prices for its 50Mbps tier, which accounts for more than half of its fixed-line user base.
As part of its updated special access undertaking, NBN Co has offered to make three “targeted” upgrades to three service criteria.
The most talked-about adjustment is the reduction in the number of unexpected dropouts required for users to qualify for a technician visit from more than nine to seven within a 24-hour period.
According to the statement, “NBN Co is proposing to lower the dropout threshold for faults from >9 to >7 within a 24-hour period.”
This pledge does raise NBN Co’s exposure to truck roll and rebate expenses for FTTN and HFC services (hybrid fibre coaxial).
NBN Co has determined that the possible cost increase is fair, nevertheless, when weighed against the advantages that this lower barrier will offer for network end users.
It is made plain by NBN Co that more significant adjustments to service levels won’t really happen until more of its fixed-line network is made of fibre.
The investment in upgrading copper services to fibre is, according to the statement, “the primary strategy for raising service standards on, and reliability of, the NBN network over time.”
“This network evolution is prioritised in NBN Co.’s network plan.”