TPG Telecom has criticized NBN Co, stating that it behaves as if it faces no competitive pressure. The company argues that this should prompt policymakers to ease restrictions on non-NBN fixed providers. TPG’s argument is based on comparing the words and actions of NBN Co.
According to TPG’s unpublished submission to the ACCC (Australian Competition and Consumer Commission), NBN Co’s recent release of a three-year pricing roadmap confirmed its intention to raise prices annually. NBN Co is allowed to increase prices by either CPI or up to five percent per year. For FY25, it proposes the full five percent increase for 50Mbps and 100Mbps services, and 3.2 percent for FY26 (though these figures are still subject to change).
TPG argues that a company facing competitive strain would be expected to minimize price increases, improve service quality, or both. However, NBN Co’s comfort in imposing annual price hikes close to the maximum allowable demonstrates a lack of concern about competition from other providers, according to TPG.
Based on the lack of competitive pressure on NBN Co, TPG suggests that restrictions on companies competing with NBN Co should be relaxed. TPG believes that a more lenient approach to regulating non-NBN fixed providers would result in compelling and differentiated services that act as a genuine competitive constraint on NBN and its pricing.
TPG’s submission also addresses NBN Co’s plan to set floor and ceiling wholesale prices for its 50Mbps service. This proposal aims to resolve an impasse with the special access undertaking (SAU), a document defining NBN access terms. TPG urges the ACCC to scrutinize this proposal closely, arguing that it will only lead to further increases in NBN’s wholesale costs.
Furthermore, TPG calls for closer scrutiny of the convergence of the 12Mbps and 25Mbps tiers. NBN Co has been targeting its 12Mbps user base, and TPG asserts that the three-year pricing roadmap indicates NBN Co’s intention to effectively withdraw the NBN12 broadband service. TPG suggests that if NBN Co wishes to withdraw the NBN12 service, it should offer the NBN25 service at the same effective price point as the current NBN12 service. TPG believes the ACCC should examine NBN Co’s claims regarding the NBN12 service and consider the negative impact of significant price increases for consumers with lower broadband needs.
