The Australian Communications Consumer Action Network (ACCAN) is asking NBN CO to discard NBN 25, the company’s entry level broadband speed level, and replace it with faster NBN 50.
In a presentation to the application of the replacement module 2025 of NBN CO replacement, a routine document that seeks to establish proposals and changes in the following regulatory cycle (from fiscal year 26 to fiscal year29), ACCAN shot for 25 connections for 25 connections Mbps, which requires a medium -term NBN CO plan of NBN to update NBN 25 to NBN 50.
Observing that the Australian Government requests a minimum level of service of 25/5 Mbps as an obligation of the NBN in Australia, ACCAN wrote that “does not consider that 25/5 is a fixed speed and recommends raising the entry level of the NBN offers to the 50/20 Mbps service ”.
“In Actan’s opinion, increasing Internet speeds for consumers means raising the quality of the reference service to which all Australian consumers can access. While there is certainly the ability to invest in faster Internet speeds at the level of Gigabit and Superior, ACCANEs warns of not pursuing this as a model for cost recovery, since it is unlikely that most Australian consumers will increase significantly its household expenses in speeds> 2 Gbps for marginal benefit. “
In the NBN CO consultation document, the company said the 25MBPS speed continues to be exemplary as an entry level option. Meanwhile, it is still committed to improving speeds and updating your network.
In January, NBN CO announced that it wants the last houses served by fiber to the node to be updated to FTTP by 2030, and in September, the maximum speed plans of 100 Mbps are established to offer maximum theoretical speeds of 500mbps. At the same time, 2,000Mbps plans will be available, which Actcan is still critical, stating that sufficient justification for such rapid plans has not been provided. These speeds can only be achieved in the complete fiber of the company, hence the updates.
Should NBN 25 replace with NBN 50?
At the time of writing this article, changing the fixed line base speed of NBN 25 to NBN 50 would require a subtle adjustment to fast -level price controls. As the mandatory input level, NBN 25 is demanding cheaper than other levels, and can only increase the price every financial year “due to the highest annual percentage change in the CPI or up to 5%”, according to NBN CO. Entry level option is established with a more strictly under the special access company, and the costs cannot increase “by more than the percentage change in the CPI each financial year.”
However, NBN CO has said that there are rules that go against NBN 50 the cheapest offer. As established in the NBN CO consultation document, an entry level offer must be adjusted to specific criteria: the service has been offered for more than 24 months, it is reasonably considered by NBN CO as the NBN entry level service service And it has a maximum discharge speed. That is lower than the most orderly speed group. As NBN 50 is the most popular speed level in operation, NBN CO has outlined what this means quite succinctly:
“The 50/20 Mbps speed level group is the most ordered TC-4 level group at the time of publication of this document and it is forecast to be the most ordered TC-4 speed level group for the fiscal year This They are the only levels of TC-4 speed that have a maximum speed of less than 50 Mbps and will have been supplied for 24 months to July 1, 2026 “.
Previously, NBN 12/5 was the offer of entry level, but it was grandfather of this role in 2023 in recognition of the growing competition and that consumer demand no longer satisfied enough.
ACCAN believes that, recognizing that NBN CO wants to increase customers by NBN 100 to 65% at the end of fiscal year2029, measures must be taken to update the input level speed.
“ACCAN worries you that the current NBN CO approach strengthens a two -level digital division between Australian households. Therefore, we recommend that NBN co -reconsider your current approach to expand higher speeds for all service levels, ”the defense organization wrote.
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