The National Broadband Network Company (NBN Co) has submitted a new broadband pricing deal to the competition watchdog after its first proposal was rejected last year.

In a statement on Tuesday afternoon, the NBN said its proposal will deliver a better outcome for consumers than its previous plan, which drew sharp criticism from regulators and big telcos for its massive price hikes.

The so-called “Special Access Undertaking” (SAU) removes capacity charges from the highest-speed 100 megabytes per second (Mbps) plans and proposes a new “floor place” for lower-speed 12 to 50 mbps NBN deals.

“By eliminating CVC (capacity) charges from the NBN Home Fast (100 Mbps) and above wholesale speed tiers, we are giving retailers greater price certainty and providing a pathway for more customers to enjoy the many benefits of our highest speed tiers,” NBN’s Jane van Beelen said.

“And by reducing CVC charges and committing to adjust data inclusions over the next three years, we are providing high-value products that will smoothly transition to flat-rate wholesale pricing on our 12, 25 and 50 Mbps speed tiers.”

But controversial elements of the first SAU proposal, which was rejected by the Australian Competition and Consumer Commission (ACCC) last year, have been retained, RMIT University Professor Mark Gregory said.

Charge affects ‘poor Australians’

“NBN Co has yet again included a CVC charge that will affect poor Australians more than those able to afford the higher speed tiers,” he said.

“The overall outcome is unlikely to be cost reductions, as NBN Co has moved the periodic increase to minimum data usage allocations into the SAU and indicates that this is a benefit of their ‘new approach’.”

Dr Gregory said the ACCC should again reject the NBN’s bid, with the regulator set to begin an expedited consultation about it next week.

“NBN Co appears to be unwilling to adopt a fresh start to their pricing model and the ACCC should resist the temptation to approve this SAU submission simply because NBN Co has moved slightly towards a better outcome for service providers and consumers,” Dr Gregory said.

“The ACCC should focus on the submission being negative for those that most need competition and lower prices, and these are the people using the lower speed tiers.”

ACCC commissioner Anna Brakey said regulators wanted to hear from experts, telcos and consumer advocates about the SAU plan before making a final decision about its approval (due in October).

“NBN Co has lodged the revised variation in response to issues raised by the ACCC and feedback provided by stakeholders since the draft decision,” Ms Brakey said on Tuesday.

“We recognise this process has extended over several years and see today as a significant milestone towards achieving a robust and effective regulatory framework for the NBN that will last well into the future.”

NBN searches for return

The NBN is looking to lock in a revised pricing plan with regulators for the next decade as it plans to post returns on the tens of billions of dollars that was spent on building Australia’s fibre optic broadband networks.

But there are concerns that the NBN will be unable to deliver large enough returns without a pricing plan that ultimately squeezes families.

Dr Gregory said the 10-year time horizon of the plan was another reason the ACCC should reject the proposal.

“A decade is a long time, and what this means is that consumers will not get timely relief from NBN Co’s expensive charges to service providers in the foreseeable future,” he said.

“There is a need for a new direction in the way that NBN Co provides products and services at reasonable cost to the service providers and ultimately to consumers.”