A Next Generation Wholesaler's View of the NBN - How Retail Service Providers can succeed in an NBN world

Main Article Content

Sarah Branson
Rene Sugo


Telecommunications, Broadband, Public Policy


The MNF Group has been operating in the Australian Telecommunications market since 2004. The author of this paper is an employee of the MNF Group and the opinions expressed are those of the author and do not necessarily represent those of the MNF Group.

Upgrading the infrastructure of an entire country is a huge undertaking and was deemed necessary with Government intervention in Australia. Had this task been left to private companies, the likelihood is that Australia would continue to experience a huge gap between the cost and availability of high quality, fast speed broadband services between metro and rural regions. The NBN rollout is several years into the project and a recently released report from the ACCC has given insights into the wholesale market and initial market indicators shows that the market is becoming less competitive. This paper examines the costs of interconnecting with the NBN and demonstrates why the NBN has not achieved its goal of providing a level playing field for all telecommunication companies. By looking at the true cost of providing NBN services to NBN users, it is shown that the NBN pricing model is flawed and will affect the quality of service being provided to Australians. To succeed in the telecommunications industry, it is suggested that smaller RSPs will need to work hard to differentiate their brand and provide added value to consumers through additional service offerings. Selling NBN services alone will not be enough to enable smaller RSPs to survive in this tough market. It can be expected that there will be further RSP consolidation within the telecommunications industry as the smaller RSPs won’t be able to compete with the big 4 dominating the market.


Download data is not yet available.


Metrics Loading ...
Abstract 412 | PDF Downloads 3 AVC Charges Downloads 0


Australian Government. 2016, April 29. NBN Wholesale Market Indicators Report. Available at: https://www.accc.gov.au/regulated-infrastructure/communications/national-broadband-network-nbn/nbn-wholesale-market-indicators-report/initial-report

Australian Competition and Consumer Commission. 2016, February. Competition in the Australian telecommunications sector. Available at: https://www.accc.gov.au/system/files/ACCC%20Telecommunications%20reports%202014%E2%80%9315_Div%2011%20and%2012_web_FA.pdf

List of NBN service providers. 2016. Available at: http://www.nbnco.com.au/connect-home-or-business/information-for-home/whats-involved-in-getting-connected/service-provider-list.html

Australian Competition and Consumer Commission 2015, August 20. ACCC to not oppose acquisition of iiNet by TPG. Available at: https://www.accc.gov.au/media-release/accc-to-not-oppose-acquisition-of-iinet-by-tpg

Sadauskas, A. 2015, September 1. ACCC defends approval of TPG/iiNet merger. Available at: http://www.itnews.com.au/news/accc-defends-approval-of-tpg-iinet-merger-408744

Australian Competition and Consumer Commission. 2015, November 5. ACCC will not oppose Vocus’ proposed acquisition of M2. Available at: https://www.accc.gov.au/media-release/accc-will-not-oppose-vocus%E2%80%99s-proposed-acquisition-of-m2

NBN Co. 2010, December 17. Corporate Plan 2011 – 2013. Available at: http://www.nbnco.com.au/content/dam/nbnco/documents/nbn-co-3-year-gbe-corporate-plan-final-17-dec-10.pdf

NBN co. 2016, June 16. Price List, Wholesale Broadband Agreement. Available at: http://www.nbnco.com.au/content/dam/nbnco2/documents/sfaa-wba2-product-catalogue-price-list_20160616.pdf

NBN Co. 2016, April 16. New discount-based pricing to encourage enhanced broadband experience. Available at: http://www.nbnco.com.au/corporate-information/media-centre/media-releases/New-discount-based-pricing-to-encourage-enhanced-broadband-experience.html

Internet Connection Speed Recommendations. 2016. Available at: https://help.netflix.com/en/node/306

Australian Communications and Media Authority. 2012, June. Television sets in Australian households 2011. Available at: http://www.acma.gov.au/~/media/Research%20and%20Analysis/Research/pdf/Television%20sets%20in%20Australian%20households%202011.PDF

Player, C. 2016, June 20. Cisco internet traffic forecasts expose further flaws in Govt's NBN rollout. Available at: http://www.arnnet.com.au/article/602027/internet-traffic-forecasts-expose-further-flaws-government-nbn/?utm_campaign=daily-pm-edition-2016-06-20&utm_medium=newsletter&eid=-4152&utm_source=daily-pm-edition

Telsyte. 2016, June 27. Strong SVOD growth create opportunities for content providers and resellers in Australia. Available at: http://www.telsyte.com.au/announcements/2016/6/27/strong-svod-growth-create-opportunities-for-content-providers-and-resellers-in-australia

Ovum. 2015, November 18. Australian OTT Video – Creating a New TV Market. Available from: http://www.nbnco.com.au/content/dam/nbnco2/documents/ott-video-in-australia-creating-a-new-market.pdf

Dudley-Nicholson, J. 2015, August 31. Presto says Australia’s internet speeds too slow for 4K content and blames new NBN. Available at: http://www.news.com.au/technology/presto-says-australias-internet-speeds-too-slow-for-4k-content-and-blames-new-nbn/news-story/f08d9845d708bdaa0556ddc3e7251f6f

Australian Coalition. 2013, April. The Coalition’s plan for fast broadband and an affordable NBN. Available at: http://lpa.webcontent.s3.amazonaws.com/NBN/The%20Coalition%E2%80%99s%20Plan%20for%20Fast%20Broadband%20and%20an%20Affordable%20NBN.pdf

NBN Co. 2016. NBN corporate plan. Available at: http://www.nbnco.com.au/content/dam/nbnco2/documents/nbn-corporate-plan-2016.pdf

Communications day. 2016, June 23. Quigley makes another election campaign plea for pervasive FTTH. Issue 5155.

Australian Bureau of Statistics. 2014. Internet Activity, Australia, December 2014. Available at: http://www.abs.gov.au/AUSSTATS/abs@.nsf/Previousproducts/8153.0Main%20Features5December%202014?opendocument&tabname=Summary&prodno=8153.0&issue=December%202014&num=&view=

Australian Bureau of Statistics. 2015. Internet Activity, Australia, December 2015. Available at: http://www.abs.gov.au/AUSSTATS/abs@.nsf/Latestproducts/8153.0Main%20Features4December%202015?opendocument&tabname=Summary&prodno=8153.0&issue=December%202015&num=&view=

NBN Co. 2016. Half Year Results 2016. Available at: http://www.nbnco.com.au/content/dam/nbnco2/documents/nbn%20half%20year%20financial%20results%202016%20-%20presentation.pdf

ISP leaderboard. 2016, May. Available at: https://ispspeedindex.netflix.com/country/australia/ (accessed 24th June).