To keep RSPs focused on marketing 250Mbps+ services, NBN Co is offering a range of CVC incentives. This happened after chief customer officer Brad Whitcomb revealed the stunning success of its current Focus on Fast promotion.

Apart from a range of CVC incentives, NBN Co also proposed to effectively cap overall cost increases to RSPs at 7% in 2022.

Superfast and Ultrafast Speed Tiers

Whitcomb also revealed that approximately 8% of its entire customer base is now signed up to 250Mbps+ speeds, particularly its Superfast and Ultrafast bundles. This surge can be attributed to the company’s Focus on Fast promotion that began last January, and is set to span until July. This promotion offers rebates that effectively price the key 100Mbps and above plans at $56 per month. In parallel to this, the plans also offer twice as much or more CVC compared to the 50Mbps plans.

According to Whitcomb: “We have seen a strong appetite for higher speed tiers in particular. We’re now sitting at about 8% of our total base on the various fast speeds, the 250 and above. And as you know, we've got about 70% of the base that's sitting on the 50 and above. So the trend in the market is in that direction. We think that it's an opportunity for retailers to continue to move that base up and therefore we wanted to make them particularly attractive.”

Focus on Fast Campaign

Executive general manager, commercial Ken Walliss further added: “Focus on Fast is performing well. We have seen RSPs moving and working with their customers up onto higher speed tiers. And really these changes just come in behind it on the Superfast and Ultrafast services, so that's really the key thinking behind it.”

To be attractive to the SME segment specifically, the higher speed plans will also be made available as business bundles. These bundles will have enhanced service level agreement offers. Walliss said: “I think the 250/100 and the 500/200, 1000/400, those three business speeds with the higher upload speeds clearly haven't been taken up that much in the past. And that was something that we called out in the first paper. As part of that, we talked about repositioning and strengthening the proposition for them, making them more attractive for RSPs to sell to small and medium businesses. We got quite positive feedback on how we were thinking about positioning them in the first paper, and that really gave us the confidence to think that for the 250/100 in particular, the scope to bring forward those inclusions and work with the RSPs to make it a more attractive small and medium business offer.”