The ACCC consults on proposals to raise service levels for the wholesale network.
Background: The Australian National Broadband Network (NBN) has a service standards framework set out within its wholesale agreements. This includes service-level terms, performance objectives and operational targets for the NBN’s supply of wholesale services. This includes timeframes for making connections, repairing faults and attending appointments, as well as requirements for the NBN Co to take corrective action and provide compensation if certain service levels are not met.
The ACCC aims to improve the service: In an inquiry on wholesale service standards, which ended in December 2018, stakeholders raised concerns to the Australian Competition and Consumer Commission (ACCC). This week, the ACCC proposed new terms aimed at improving the NBN’s wholesale service levels. These include a reworked rebate structure for missed appointments, late connections and unresolved faults. The rebates would apply on a daily basis, rather than being one-off payments, and would be larger than the current ones. The size of rebates for missed appointments by NBN technicians would increase three-fold (from AUD25 to AUD75) and retail providers would have to pass the rebate on to consumers. Reporting and measuring requirements would also be enhanced.
Next steps: The ACCC is now accepting submissions on the draft decision. Responses can be sent until 1 November 2019. The ACCC expects the proposed regulated terms to establish baseline standards, while allowing parties freedom to bargain on specific terms.
