NBN to extend Wholesale Broadband Agreement with Retailers

NBN Co has released details of a proposed extension to its current Wholesale Broadband Agreement (WBA4) with Retail Service Providers (RSPs) and issued a consultation paper to start discussions on a new Wholesale Broadband Agreement (WBA5), which is scheduled to come into effect in mid-2023.

The extension, known as WBA4+, includes a bridging offer, which forms part of the company’s ongoing focus on improving the nbn® network and overall customer experience, while providing additional support and certainty to RSPs. The offer will precede the significant reductions in wholesale pricing that NBN Co has proposed for inclusion in its revised Special Access Undertaking (SAU).

The bridging offer will cover the period after 30 November 2022, when the current Wholesale Broadband Agreement (WBA4) is due to expire, until the new SAU has been accepted by the ACCC and implemented via a new Wholesale Broadband Agreement (WBA5).

In parallel with the WBA4+ bridging offer, the company has released its WBA5 Consultation Paper, which will focus on seeking feedback on how to engage with RSPs to ensure the effective operational implementation of a new SAU. The parallel consultation process is intended to ensure the significantly modified wholesale pricing and commitments of the new SAU can be ready for implementation via WBA5 by the target date of 1 July 2023.

As previously announced, NBN Co is preparing a new SAU variation proposal that reflects the recent changes in the policy landscape and operating environment. The ACCC will review the company’s new SAU Variation once submitted in October 2022, and it is expected that the ACCC will commence consultation shortly thereafter to enable the process to be finalised by early 2023.

As part of its revised SAU Variation proposal, and in addition to the previous commitment to remove CVC (capacity) charging and introduce AVC-only pricing for the nbn Home Fast (100 Mbps) and above wholesale speed tiers by 1 July 2023, NBN Co has proposed a firm timeframe for the complete removal of CVC charges and the introduction of AVC-only pricing across the 12, 25 and 50 Mbps wholesale speed tiers by 1 July 2026.

It has also proposed significant wholesale price reductions to AVC-only pricing on key higher speed tiers by 1 July 2023; reduced wholesale bundle charges or additional data inclusions on 12, 25 and 50 Mbps wholesale speed tiers; the introduction of a Weighted Average Price Cap (WAPC) that will initially cap the company’s overall pricing on average at CPI; further limitations on drawdown of the Initial Cost Recovery Account (ICRA); setting benchmark service standards for each regulatory period, with ACCC oversight, and the automatic expiration of the SAU before 2040 if a future Government relinquishes control of NBN Co.

NBN Co General Manager Wholesale Supply, Jane Witter, said, “We are pleased to propose the WBA4+ bridging offer enhancements, which offer greater certainty to internet retailers and customers. The bridging offer is an important step towards a new SAU that will reflect the changes in the policy landscape and operating environment.

“Many of these RSP and customer benefits are enabled by the substantial investments and improvements we have made to our products, systems and processes during the term of WBA4.

“We appreciate the discussion and feedback that was provided during our recent engagement with the Australian Competition and Consumer Commission, RSPs and consumer advocacy groups at the recent ACCC Industry Forum on NBN Co’s proposed SAU Variation.

“We look forward to engaging in further consultation with the ACCC and industry in the weeks ahead and, once we have lodged our new SAU Variation proposal in October 2022, we will continue to work towards a new Wholesale Broadband Agreement.”

Wholesale Broadband Agreement (WBA4+) Bridging Offer:

The WBA4+ bridging offer spans four key financial and quality measures, and has been designed to address industry feedback and contractually reflect recent improvements to NBN Co’s products, systems and processes, including:

Financial measures
Fixed Wireless quality measures
Service level and systems improvements
Operational improvements

A variation agreement covering the WBA4+ bridging offer changes will be provided to RSPs in the coming weeks.