MEDIA RELEASE - THE ECONOMICS OF FIBRE AND COPPER ARE GOING IN TWO DIFFERENT DIRECTIONS - 10 NOVEMBER 2017

The release of the ACCC’s NBN wholesale market indicators for the Jun-Sept quarter reveals a tale of two technologies headed in different directions:

 

  • FTTN – the revenue generated by NBN per copper customer has decreased for the second consecutive quarter. 
  • FTTP – the revenue generated by NBN per fibre customer has increased for the second consecutive quarter. 
  • FTTN – the proportion of consumers taking up 100 Mbps plans over copper has decreased for the second consecutive quarter. 
  • FTTP – the proportion of consumers taking up of 100 Mbps plans over fibre has increased for the fourth consecutive quarter. 
  • AVC - revenue per NBN user has decreased for the second consecutive quarter for the access charge.
  • CVC - revenue per NBN user has increased for the second consecutive quarter for the capacity charge. 

The ACCC data supports Labor’s longstanding position that the decision by Malcolm Turnbull to deploy a second-rate copper network is leading to take-up of lower speed tiers and in turn leaving NBN more dependent on bandwidth charges for revenue growth. This is bad for consumers, bad for industry and bad for the NBN. 

This comes off the back of the announcement that Telstra customers will be compensated for being sold speeds the copper NBN could not support

The medium term implications of these trends will no doubt have a negative impact on the business case and leave taxpayers far more exposed than the questionable 2018 Corporate Plan would suggest. 

Labor reiterates calls for the Government to immediately endorse Recommendation Two of the NBN Joint Standing Committee, which calls for an independent audit of the assumptions underpinning the financial forecasts contained in the 2018 NBN Corporate Plan.

Not only is Turnbull’s copper delivering a poor experience for consumers, but with every passing day it becomes a bigger risk to the Australian taxpayer.