Because of lockdowns persisting, the CEOs of NBN Co’s top five largest RSPs have come together to call for NBN to revisit the demand baseline on which it calculates “normal demand”. They are also petitioning the NBN to end a practice where RSPs that effectively manage their CVCs are being penalised in favour of those who don’t.

According to Telstra’s Andy Penn, Optus’s Kelly Bayer Rosmarin, TPG’s Inaki Berroeta, Vocus’s Kevin Russell, and Aussie Broadband’s Phil Britt, the five CEOs: “The industry has been dealing with the effects of COVID-19 for over 18 months, and had adjusted its forecasts for the new “COVID-Normal” usage that was occurring in the first half of 2021."

“The environment has changed significantly since the Delta outbreak in Sydney, however, and the resulting lockdowns that have occurred in almost every state and territory since June 2021 have led to unexpected and significant increases in usage. Using the current baseline, these increases have not been accommodated, and as such RSPs have been exposed to significantly increased CVC overage charges. A change of this baseline to the average from 1 May – 26 May 2021 would align with NBN Co’s most recent changes to the bundle inclusions and will accommodate the significant increase in demand driven by the current lockdowns,” the CEOs further added.

Still, according to the five CEOs, “now is not the right time to pull back on the levels of support NBN Co has provided for previous lockdowns,” and “now is not the right time to profit from COVID-driven increases in consumer demand.” The CEOs also cited that the level of ‘relief’ offered by NBN Co for the current lockdowns is not enough. 

In addition to this, the rebates do not come anywhere close to covering the increases in wholesale costs. Telecommunications providers pay the latter to NBN Co. The letter initiated by the five CEOs said that: “The wholesale costs borne by all retail service providers continue to increase month after month at an unmanageable rate and, without further action by NBN Co, this will ultimately result in poor consumer outcomes.”

The letter also highlighted the following details: “At the onset of COVID in early 2020, NBN Co responded by providing a 40% uplift in capacity at no extra cost – ensuring Australians had access to fast, reliable broadband. Today, Australians need unconstrained connectivity more than ever, however, NBN Co has not reinstated the 40% capacity uplift. Instead, it has implemented a different relief program that means RSPs are paying substantially more in CVC overage charges than what could have been anticipated.”

However, according to NBN Co, the RSPs have underestimated the degree of relief they have been offered over the past 18 months