Australian competition regulator investigating broadband pricing

The Australian Competition and Consumer Commission (ACCC) is launching an investigation into whether customers have access to ‘basic’ broadband plans at fair and affordable prices. Undertaken as part of an inquiry into wholesale charges for services offered over the National Broadband Network (NBN), the ACCC said it will examine wholesale prices paid by retails service providers (RSPs), with a specific focus on the charges levied for broadband plans offering downlink/uplink speeds of 12Mbps/1Mbps. According to the regulator, it will consider whether regulation is required to ensure ‘a smooth transition for consumers to the NBN from legacy services such as ADSL’. It was noted that the inquiry will also assess whether NBN Co’s most recent pricing offers – and specifically the latest changes made to its entry-level offering – will allow RSPs to market ‘attractive retail NBN plans at ADSL-like prices’. As such, the regulator has suggested that such arrangements may not be providing enough certainty for RSPs as they develop and promote their retail offers.