1 in 3 nbn users on 50 Mbps plans

By Dylan Bushell-Embling
Monday, 13 August, 2018

1 in 3 nbn users on 50 Mbps plans

Efforts by nbn co to encourage retail service providers to upgrade to 50 Mbps plans are having the desired effect, with take-up of 50 Mbps nbn plans growing 47% in the June quarter.

This is one of the key findings of the ACCC’s latest quarterly Wholesale Market Indicators report. The report found that nbn co’s Focus on 50 promotional campaign has now led to a more than nine-fold increase in adoption of 50 Mbps services over the previous two quarters.

The 50 Mbps category is now the most popular nbn speed tier, with 1.45 million subscribers as of the end of June. This represents over a third of connections.

But this means that the majority of nbn connections remain 25 Mbps or lower plans. The number of 25 Mbps plans declined 15% to 1.15 million as 25 Mbps plans were substituted for 50 Mbps plans as part of the campaign.

But the number of 12 Mbps services actually increased 5% to 1.16 million, and the number of 100 Mbps plans decreased 3% to just over 400,000. Just 470 customers are meanwhile on 250 Mbps or higher plans.

The total number of wholesale residential nbn broadband access connections increased by around 320,000 over the quarter to 4.13 million. Market share of the various nbn retail service providers remained stable, with Telstra in the lead followed by TPG, Optus and Vocus.

Meanwhile, average connectivity virtual circuit (CVC) capacity purchased per user increased to 1.55 Mbps during the quarter from 1.66 Mbps at the end of the first quarter. CVC is a bandwidth pipe purchased by nbn retail service providers in each region they wish to serve.

“The average CVC per user is an important indicator of how service providers are provisioning their network to meet customers’ expectations of broadband speeds. While the amount of CVC acquired by each RSP will differ, RSPs must ensure they have enough CVC to continue to deliver strong broadband speeds to their customers, even during peak periods,” ACCC Chair Rod Sims said.

“The ACCC’s actions to monitor broadband performance and guarantee transparency in advertised speeds have contributed to RSPs provisioning enough CVC for their customer base.”

As the rollout progresses, nbn availability is becoming a key differentiator for residential properties. Rental property website rent.com.au has added the ability to search for properties with nbn availability to its new mobile app for renters.

The mobile app is designed to provide renters with easy access to all the information they need on a property — including nbn availability — and to allow them to rapidly submit rental applications and supporting documents.

Renters can also use lifestyle filters to search for premises based on preferences such as family-friendly neighbourhoods or entertainment options, and view ratings from fellow users from the company’s Suburb Reviews database.

Image courtesy nbn co.

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