Competition in NBN Wholesale Market Keeps Growing

With more than half a million new services added between July and September, the NBN is now providing over 6.1 million residential broadband services, according to the ACCC’s latest quarterly Wholesale Market Indicators Report released recently.

The report also shows that more wholesale access seekers are directly connecting with the NBN at more NBN points of interconnect (POIs). There were at least nine different wholesale access seeker groups directly connected to the NBN at all of the 121 POIs in the September quarter, while at least ten access seekers were connected at 119 of the POIs.

Telstra remains the dominant acquirer of wholesale NBN services, with 48.1 percent of all connections. While market shares vary each quarter, Telstra’s market share has declined from a peak of 50.1 percent in June 2017, and TPG Group’s market share has fallen from about 23.4 percent to 22 percent.

During the same period, Optus increased its market share from 12.8 percent to 15.2 percent while Vocus’ share fell slightly. The collective share of other access seekers increased from about 5.7 percent to 7.3 percent.

“We are pleased to see smaller service providers steadily acquiring services in more places across Australia. This continues to encourage healthy competition for the benefit of consumers and businesses who rely on the NBN,” ACCC Chair Rod Sims said.

The number of higher speed plans taken up by Australian consumers continues to increase. Almost two thirds of all NBN services are now higher speed services of 50Mbps and above.

50Mbps plans continue to be the most popular, comprising 57.1 percent of all NBN residential services, while 100Mbps plans account for 8.5 percent.

While access seekers have taken advantage of promotions and wholesale bundles to entice consumers onto higher speed plans, more than 2.1 million Australians remain on 12Mbps and 25Mbps plans. Just over 1 million consumers are on the entry-level 12Mbps speed tier.

“These lower speed products play a crucial role in the transition from legacy services to the NBN. The ACCC is committed to ensuring that customers who have no need for, or do not want, higher speed services have access to basic affordable broadband products on the NBN,” Mr Sims said.

In October the ACCC announced an inquiry into NBN wholesale charges with a focus on entry-level products.

Connectivity Virtual Circuit (CVC), which is the NBN bandwidth acquired by wholesale access seekers to provide data to their customers, increased 3.2 percent on a per user basis over the quarter from 1.75Mbps to 1.80Mbps. This has grown from 1.01Mbps in March 2016, when the ACCC’s first Wholesale Market Indicators Report was published.

Further information, including time series data, is available on the ACCC website at NBN Wholesale Market Indicators.



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