NBN Co yielded to the demands made by the CEOs of its five leading retailers. The company decided on a favourable reset of its CVC overage rebate scheme. In parallel to this, NBN Co also rebutted the claims by the RSPs that it is profiting from COVID.

“From 1 October 2021 until 31 December 2021, NBN Co will calculate COVID credit relief for additional data uses above a 25% Compound Annual Growth Rate by comparing each internet retailer’s ongoing monthly data utilisation against their respective use in May 2021 as their individual baseline. NBN Co will factor in the CAGR on a monthly basis when calculating its voluntary COVID relief credit for internet retailers,” NBN said.

“NBN Co’s new methodology for calculating COVID relief credit, with May 2021 as the baseline, will mean even greater support by NBN Co for internet retailers on top of the significant support already provided. Internet retailers’ exposure to overage in May 2021 was uniquely and artificially suppressed by a range of factors including the introduction of additional CVC inclusions on 1 May; the peak of NBN Co’s Focus on Fast rebates and inclusions, and lower overall internet use following an end to the previous lockdown period.”

“To enable NBN Co and internet retailers to evenly share the costs of additional data demand, NBN Co will credit internet retailers 50% of the wholesale overage charge for any additional data use above the 25% CAGR. This will be credited to internet retailers at a rate of $4 per Mbps, rather than the usual charge of $8 per Mbps. Previously, NBN Co applied its normal wholesale rate of $8 per Mbps and calculated the industry’s total aggregate COVID credit relief for July, August, and September based on total CVC utilisation above the 25% CAGR. The new methodology will ensure more certainty and greater protection for internet retailers against incremental increases in data use.”

According to a spokesperson for NBN Co, “To suggest NBN Co is somehow ‘profiting from COVID’ is incorrect and completely counter to the fact.”

“Far from profiteering, NBN Co’s net revenue reduction and additional capacity-related network investment have cost the company more than $100 million in the support we have provided to internet retailers to enable them to provide Australian households more data than ever before during COVID. NBN Co’s Residential Average Revenue Per User has remained steady and flat for the last 18 months to 30 June 2021 at $45, while capacity-related network investment to support additional data demand has grown. It is unfair and unrealistic to expect Australian taxpayers to offer additional subsidies beyond what is already in place to support and underpin the profits of retailers.”