Along with the Minister for Finance, Senator the Hon. Katy Gallagher, I have written to NBN Co outlining the Government’s expectations in relation to the Special Access Undertaking (SAU) variation process currently underway.
I have also written to the Australian Competition and Consumer Commission (ACCC) outlining the change in policy landscape under the new Government, and the space this creates for problem-solving.
The SAU provides a framework for how NBN prices are regulated to ensure broadband remains affordable, while ensuring NBN Co remains a commercially sustainable company that can efficiently invest in Australia’s future connectivity needs.
At the core of the Albanese Government’s priorities are the long-term interests of Australian consumers. This means affordable prices and a quality, resilient network.
In contrast, the SAU variation lodged in March 2022 under the former Government would have allowed NBN price increases of inflation plus three per cent a year on some products. This was underpinned by unrealistic revenue expectations, and reflected a view to privatisation.
The SAU variation process offers the best prospect of a regulatory outcome that serves the long-term interests of consumers, but I have formed the view that the current NBN Co variation proposal is not acceptable.
I support NBN Co withdrawing its current variation proposal and submitting a revised proposal that is capable of acceptance, and delivers pricing certainty for retail providers.
I also encourage NBN Co and the ACCC to work closely with each other and industry stakeholders to ensure a new SAU proposal that achieves these objectives can be agreed by early 2023.
This will deliver pricing certainty sooner to industry, NBN Co and the ACCC.
I will be writing to retail providers and industry stakeholders thanking them for their participation in the SAU process to date, and encouraging them to engage in the reset process.
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