NBN Co Waives Additional Wholesale Capacity Charges During COVID-19 Pandemic

In BICSI Blog, BICSI Bytes, Newsby info@bicsi.com.au

NBN Co recently announced it will waive charges for additional capacity of up to 40% to Retail Service Providers (RSPs) for at least three months to help them support Australian residential and business NBN customers. The additional capacity pricing relief will apply to all fixed-line, fixed-wireless and satellite NBN technologies.

From 23 March, NBN Co will immediately offer retailers access to pricing relief for up to 40% more Connectivity Virtual Circuit (CVC) capacity as required to help meet demand over time at no additional cost.

The announcement follows weeks of detailed planning and assessment by NBN Co’s engineers on the network’s capabilities to effectively meet Australia’s growing broadband requirements as more people choose to spend more time at home working, studying, shopping, and streaming entertainment content.

NBN Co will set the CVC usage charges applied in February 2020 as the baseline, waiving any additional changes for overage that would otherwise be incurred by RSPs over the next three months, and will continue to monitor the situation in terms of any further decision making required.

NBN Co Chief Executive Officer, Stephen Rue said: “We have been in regular talks with retailers over the past couple of weeks to understand the wholesale network support they require to meet the needs of more Australians working from home and as individuals, couples and families across the nation are spending more time at home, and naturally wanting to stay productive and connected to family and friends.

“Data carriage on the NBN has already increased by around 5 – 6% over the last few days as customers have increasingly started to work from home. The NBN is performing well, and we have not seen or experienced any significant traffic congestion on the network.

“We’re closely following events unfolding in other parts of the world and we have taken decisive action to incrementally offer pricing relief for up to 40% more capacity. This is equivalent to the higher end of increased data bandwidth requirements that we have seen in countries such as Italy, which have mandated work from home arrangements.

“The additional capacity pricing relief will help support significantly greater data use on the network throughout the day and during peak evening times. The offer will be made available to the industry in time to meet the steadily growing data consumption patterns of residential and business customers.

“NBN Co will play the critical role it was set up to fulfil, ensuring Australia’s wholesale digital infrastructure is robust, resilient and reliable. We are confident that this immediate response will make a significant difference.”