nbn RSPs buying more CVC capacity


By Dylan Bushell-Embling
Thursday, 09 November, 2017


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The nbn’s retail service provider customers slightly increased the amount of capacity they are purchasing per customer during the September quarter, according to statistics compiled by the ACCC.

The competition regulator’s latest nbn wholesale market indicators report shows that the connectivity virtual circuit (CVC) being purchased per user increased from 1.09 Mbps in June to 1.11 Mbps in September.

“This is encouraging as provisioning adequate CVC is essential if RSPs are to ensure households and businesses can get the speeds they are promised,” ACCC Chairman Rod Sims said.

“The ACCC’s current consultation proposing more detailed reporting by nbn co should improve our understanding of CVC provisioning and use, particularly concerning times when congestion limits are reached.”

Rising customer complaints about slow connection speeds have driven the CVC into the spotlight, with nbn co blaming RSPs for not purchasing enough capacity while RSPs counter that CVC prices remain too high.

The statistics show that nbn co was supplying just over 3 million wholesale broadband services as of the end of September — up from 2.5 million the previous quarter — and total CVC capacity of 3.45 Gbps — up from 2.82 Gbps at the end of June.

Meanwhile, the figures show that 25 Mbps continues to be the most popular speed tier on the nbn, accounting for 55% of all services. This is followed by 12 Mbps (29%), 100 Mbps (12%) and 50 Mbps (4%).

Competition on the nbn is increasing as more retail service providers build up the scale to directly connect to nbn's 121 national points of interconnect. The figures show that there are now 26 access seeker groups directly connected to the network.

The top four RSPs — Telstra, Optus, TPG and Vocus — have direct connections at all 121 POIs, and at nearly all of these (112) there are at least two additional RSPs connected.

Meanwhile, nbn co has announced a range of initiatives designed to ease the process of Australian businesses moving across to services on the nbn.

The company has established a new team to work alongside RSPs to deliver an improved customer experience as well as a new partner program dedicated to training ICT industry professionals to educate business customers about the migration process.

In addition, nbn co will introduce a new capped pricing model for its wholesale business services designed to stimulate competition in the retail market.

“Businesses often require a different level of service, which is why we’ve been developing custom-built wholesale product and service offerings and a targeted communications program in order to make the transition to the new network as smooth as possible,” nbn co Chief Customer Officer for Business John Simon said.

“Connecting a business to the new network may take some time and preparation. With the rollout set to be complete over the next three years, we recommend businesses get in touch with their phone and internet provider as soon as possible to make a plan to move their services over to the new network.”

Image courtesy nbn co.

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