There was a 30 percent decline in higher than 100Mbps subscriptions following the end of Focus on Fast promotion. This was revealed in the latest NBN wholesale market indicators report released by the Australian Competition and Consumer Commission.

NBN subscribers who signed up to greater than 100Mbps services, including the Super Fast and Ultra-Fast bundles, decreased from 7.8% last June to 5.4% last September. This is equivalent to around 650K subscribers down to 455K subscribers. The reduction in numbers happened in parallel to the halting of new sign-ups to the Focus on Fast promotion. 

This promotion previously offered bundles of 100Mbps, 250Mbps, and 1000Mbps AVCs with generous allocations of CVC. For six months, the 250Mbps Superfast and 1000Mbps Ultrafast bundles, which were usually priced at $68 and $80 respectively, were offered for only $56 under the Focus on Fast promotion.

TPG experienced around 85% decline on the 250Mbps tier and 69% on the 1000 Mbps tier. This translates to roughly 277,000 services and 43,000 services respectively. On the other hand, the services on the standard speed tier of TPG increased to 42% or 292,000 services. Meanwhile, its fast-speed tier services also rose to 23% or 64,000. In terms of the other RSPs, there was less volatility in their tier speed shares over the quarter.

ACCC commissioner Anna Brakey said that “The 50Mbps and 100Mbps speed tiers have been very popular with consumers recently, which is understandable as extended lockdowns in several states and territories have resulted in millions of people working and learning from home.”

“As temporary promotions wind down and retailers adjust the pricing accordingly, we strongly encourage customers to think about their internet needs and pay for a higher speed tier only if their usage demands it.”

It is deemed that the full impact of the withdrawal will be seen in December, with the second half of the promotion period ending July. The numbers are said to provide a lesson on the limited marginal utility of high-speed broadband. The take-up of fast-speed services is now estimated to be 29% of SIOs on the gigabit-capable FTTP and HFC networks. This provides an indication of possible uptake for the fibre on-demand offering. The offering is set to roll out in FTTN and FTTC areas beginning next year.

The effect of the discounts provided within the last nine months is that the overall percentage of the NBN customer base on the fast speed tier or higher services was at 15.9%. This is the same as it was in December last year.