NBN Co raises wholesale prices, scraps CVC charges for high speed broadband

NBN Co has unveiled its new set of wholesale pricing for 2024-2026 which will see prices rise by almost eight per cent over two years. 

According to NBN Co's three-year rolling pricing roadmap, wholesale prices will rise at 4.6 per cent in FY25 and approximately 3.0 per cent in FY26. 

The broadband builder will remove CVC (capacity) charges and deliver flat-rate wholesale pricing for its highest-speed product in the next financial year. 

NBN Co said the price rises are based on the Reserve Bank of Australia's (RBA) published forecasts in February 2023 for inflation in these outer years. 

The pricing roadmap will be finalised subject to the ACCC’s acceptance of a revised Special Access Undertaking (SAU) variation, which it plans to lodge in June.

Last week, the ACCC rejected NBN Co's most recent proposed variation following an assessment and extensive engagement with NBN Co, retail service providers (RSPs), consumer representatives and other stakeholders.

Indicative wholesale prices in the Pricing Roadmap for NBN Co's entry-level 12/1 Mbps, 25/5 Mbps and 25/10 Mbps products (excluding satellite services) are indexed to inflation in FY25 and FY26.

The NBN 50/20 Mbps and NBN Home Fast 100/20 Mbps speed tiers are each increased by 5 per cent in FY25 and 3.2 per cent in FY26. 

The indicative wholesale price in the Pricing Roadmap of the NBN Home Superfast 250/25 Mbps speed tier increases by 4.6 per cent in FY25 and 2.9 per cent in FY26, while the indicative wholesale price of the NBN Home Ultrafast speed tier, which offers wholesale download speeds of 500 Mbps to close to 1 Gbps and wholesale upload speeds of up to 50 Mbps, increases by 3.9 per cent in FY25 and 2.5 per cent in FY26.

The indicative wholesale prices in the Pricing Roadmap for NBN Sky Muster and Sky Muster Plus satellite services are unchanged in FY25 and FY26, NBN Co added. 

This week, NBN Co announced that its earnings before tax (EBITDA) reached $2.7 billion, a 20 per cent increase compared to the previous corresponding period during the nine-month period ending 31 March.

The network operator is claiming to still be on track to reach its full-year guidance, with revenue sitting at just under $4 billion for the third quarter.