Thursday, 20 February 2020 11:23

More people take up lower speed NBN connections: ACCC Featured

More people take up lower speed NBN connections: ACCC Image by Jorge Guillen from Pixabay

More people are shifting from faster to slower NBN connections, with those on 12Mbps plans increasing to 17.6% of all NBN wholesale services at the end of the December quarter, the competition watchdog reports. The figure at the end of the previous quarter was 16.2%.

The Australian Competition and Consumer Commission's latest quarterly Wholesale Market Indicators Report, released on Thursday, said the share of 25Mbps services fell from 18.1% to 15.5%.

In a statement, the ACCC said it was aware "that access seekers shifted a large number of wholesale services from the 25Mbps tier to the 12Mbps tier during the quarter, following changes to NBN wholesale pricing".

"Under NBN Co’s previous wholesale pricing offers, some service providers were using 25Mbps bundled wholesale services to supply 12Mbps plans to some of their retail customers."

Telstra continues to dominate the market for wholesale buyers of NBN services, accounting for 47.8% of all services, while Optus (15.5%) and TPG (21.9%) remained stable.

Smaller wholesale access seekers - who buy wholesale NBN services and supply them to individuals or businesses - increased their share from 7.3% to 7.5%.

The report showed that 6.6 million residential services were connected to the NBN, with 400,000 services having been activated in the final quarter of 2019.

Use of wholesale bandwidth, also known as Connectivity Virtual Circuit, has gone up by 6.5% from 1.80Mbps to 1.92Mbps when averaged across users.

Wholesale access seekers rose by one, to 10, who were connected to all 121 points of interconnect compared to the previous quarter. And 11 access seeker groups were connected to 116 PoIs, up from 108 three months ago.

“Our NBN wholesale market indicators reports continue to show a steady increase in access seekers directly connecting to the NBN, which means more competition in the retail market and more choice for Australian broadband consumers,” ACCC chair Rod Sims said.

“The rise in bandwidth per user is also positive, as it should be resulting in a better experience for broadband consumers.”

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Sam Varghese

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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