Telstra CEO demands $20 a month NBN price cut

https://www.itnews.com.au/news/telstra-ceo-demands-20-a-mont…

Penn used his AGM address to put pricing firmly back on the radar of regulators and government.

He noted the growing disparity between wholesale prices for copper access, which are regulated by the Australian Competition and Consumer Commission (ACCC), and those set by NBN Co.

“The price we charge our competitors for access to our network, when they provide broadband services to their customers, is set by the ACCC. On an equivalent basis to the NBN, this is currently in the order of $20 per month per customer,” Penn said.

“The average wholesale price currently being charged by NBN Co to the industry is $44 per month per customer, more than double and their plan is to increase this further to $51 by FY22.

“That is why Telstra and all of the telcos selling NBN today are facing a fixed line market where reseller margins are rapidly falling to zero.”

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Comments

  • +6

    So, basically we swapped one monopoly for another (and stuffed it up in the process) and the prices are still going to the moon? "straya, the clever country…..

    • Yep, and we locked in 2010 internet prices for the next century.

      • +1

        Worse.. we locked in 2010 prices + $20

        Entry level ADSL2 was $40 with unlimited for $60 on the decent budget providers

        On NBN you're looking at $50 to $80 mark at least. And thats with ISPs in a price war with tight margins. After the migration phase is complete, the market would consolidate and margins would go up.

  • But will it be passed on to the customer? I doubt.

    • -1

      Anyone with the sense to ask this question will know the answer.

  • +4

    It’s nice to hear powerful telcos like Telstra say this, but at the same time it’s a bit rich coming from Telstra after they’ve been mercilessly gouging customers themselves for years.

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