ACCC to investigate high cost of low speed NBN plans

Original article by James Fennessy
The Australian Financial Review – Page: 13 & 19 : 15-Oct-19

The Australian Competition & Consumer Commission will undertake an investigation into NBN Co’s wholesale pricing. The focus of the investigation will be on whether NBN has concentrated too much on developing products for those who want high internet access speeds at the expense of consumers who only want low internet speeds. The Australian Communications Consumer Action Network has warned that a significant section of the community will be excluded from getting an NBN service if its prices increase any further.

CORPORATES
NBN CO LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN COMMUNICATIONS CONSUMER ACTION NETWORK

Telstra stung by go-slow on NBN

Original article by Supratim Adhikari
The Australian – Page: 19 : 3-Sep-19

NBN Co’s latest corporate plan indicates that seven million homes will have an active National Broadband Network service by 30 June 2020, compared to its previous forecast of 7.5 million. The slowdown in the number of homes being connected to the NBN will not only impact on NBN Co’s revenue forecasts but on Telstra’s as well. The telco has advised that the slowdown will reduce its revenue by about $400m.

CORPORATES
NBN CO LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS

Consumers who know their NBN speed are more satisfied with their provider

Original article by Roy Morgan
Market Research Update – Page: Online : 27-Aug-19

New research from Roy Morgan shows that consumers who know what their NBN plan’s ‘typical evening speed’ should be are more satisfied with their provider (78%) than those who do not know (68.1%), according to research conducted in the three months to June 2019. Analysis of the consumer NBN market shows that 49.9% of consumers do not know "What typical evening speed is included in your NBN plan?" Interestingly, this lack of knowledge about speed is not simply because someone may not be the Primary or Joint Fixed Broadband Decision Maker. For the 49.9% of consumers who do not know the ‘typical evening speed’ of their NBN plan a clear majority of 59.8% are either the Primary (25.2%) or Joint (34.6%) Fixed Broadband Decision Maker. There is a clear link between those who do know their NBN speed tier and increased satisfaction with their internet service provider (78.0%). In contrast, just over two-thirds of those who did not know their typical evening speed (68.1%) were satisfied with their internet service provider, a significant difference of 9.9% points.

CORPORATES
ROY MORGAN LIMITED

Telstra behind high NBN prices

Original article by Supratim Adhikari
The Australian – Page: 17 & 27 : 1-Aug-19

Telstra CEO Andy Penn has used a National Press Club speech to call for NBN Co to reduce the wholesale prices that it charges for accessing the national broadband network. He argued that the current wholesale prices means it is not profitable for telcos to resell NBN services, and that reducing these charges would encourage investment in the sector. However, Andrew Sheridan of Optus argues that the high wholesale prices are at least partly due to NBN Co’s ongoing payments to Telstra. Vodafone CEO Inaki Berroeta agrees with his comments.

CORPORATES
TELSTRA CORPORATION LIMITED – ASX TLS, NBN CO LIMITED, SINGTEL OPTUS PTY LTD, VODAFONE AUSTRALIA LIMITED

NBN bleeds as revenue targets prove elusive

Original article by James Fernyhough
The Australian Financial Review – Page: 15 : 7-May-19

NBN Co has advised that it recorded revenue of $2 billion for the nine months to 31 March, although it posted a net loss of $3.4 billion for the period. As of March, 8.8 million Australian households were ready to connect to the NBN, with fibre-to-the-node the most common form of connection technology. NBN has set an average revenue per user target of $51 per month by 2022, but its ARPU is currently only $45 per month, up from $44 a year ago. NBN Co may need to seek a bailout from the federal government if it does not meet this target.

CORPORATES
NBN CO LIMITED, AUSTRALIAN LABOR PARTY

Telcos slam NBN’s marketing push

Original article by James Fernyhough
The Australian Financial Review – Page: 13 & 18 : 26-Mar-19

Telcos such as TPG Telecom have accused NBN Co of targeting their business customers. Their view is that NBN Co is meant to be a wholesaler and it should not be having direct contact with end users. The Australian Competition & Consumer Commission has observed that NBN Co is permitted to directly promote its services to end users, but that it is not permitted to recommend retail service providers to end users. The ACCC’s view has been backed up by the federal government.

CORPORATES
TPG TELECOM LIMITED – ASX TPM, NBN CO LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, SINGTEL OPTUS PTY LTD, COLES GROUP LIMITED – ASX COL, TELSTRA CORPORATION LIMITED – ASX TLS, MACQUARIE TELECOM GROUP LIMITED – ASX MAQ

TPG calls for reduction in damaging NBN price

Original article by James Fernyhough
The Australian Financial Review – Page: 14 & 20 : 20-Mar-19

TPG Telecom has posted a 2018-19 interim net profit of $47.4m, which is 76.3 per cent lower than previously. The result was marred by a write-down associated with a decision to shelve plans for its own mobile network. TPG has advised that earnings from its core residential fixed-line broadband business fell 4.8 per cent to $243m during the half-year. CFO Craig Levy has warned that TPG will have to scrap its entry-level national broadband network plan unless NBN Co reduces its wholesale prices for budget plans.

CORPORATES
TPG TELECOM LIMITED – ASX TPM, NBN CO LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, NEW STREET RESEARCH, GOLDMAN SACHS AUSTRALIA PTY LTD, VODAFONE AUSTRALIA LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Labor mulls NBN write-down trigger

Original article by John Kehoe, Max Mason
The Australian Financial Review – Page: 1 & 10 : 4-Feb-19

The Opposition’s communications spokeswoman Michelle Rowland says Labor has no plans at this stage to sell the NBN should it win the upcoming federal election. However, she says Labor has not ruled out a write-down of the NBN’s value. Such a strategy would reduce the NBN’s financial targets, which would allow it to reduce broadband wholesale charges to telcos such as Telstra and Optus, which in turn would potentially lead to lower prices for consumers.

CORPORATES
AUSTRALIAN LABOR PARTY, NBN CO LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, SINGTEL OPTUS PTY LTD, VODAFONE AUSTRALIA LIMITED, TPG TELECOM LIMITED – ASX TPM, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, GILBERT AND TOBIN LAWYERS, TELSYTE PTY LTD, AUSTRALIA. DEPT OF FINANCE

NBN Co to pay telcos $25 for every missed appointment

Original article by Max Mason
The Australian Financial Review – Page: Online : 13-Sep-18

NBN Co has provided a court-enforceable undertaking to the Australian Competition & Consumer Commission regarding missed or late appointments by its technicians. It will pay a rebate of $25 to retail service providers (RSPs) such as Telstra, TPG Telecom and Vodafone Hutchison Australia every time an appointment is missed or a technician is late. Under the terms of the undertaking, the RSPs are expected to take "reasonable steps" to ensure their customers receive some form of benefit as a result of the improved rebates.

CORPORATES
NBN CO LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, TELSTRA CORPORATION LIMITED – ASX TLS, TPG TELECOM LIMITED – ASX TPM, VODAFONE HUTCHISON AUSTRALIA PTY LTD, VOCUS GROUP LIMITED – ASX VOC, SINGTEL OPTUS PTY LTD

TPG bulks up ahead of 5G mobile race

Original article by Supratim Adhikari
The Australian – Page: 17 & 20 : 31-Aug-18

The merged TPG Telecom and Vodafone Hutchison Australia will boast eight million customers and revenue in excess of $6bn. TPG founder David Teoh will have a 17 per cent stake in the combined group, while Vodafone’s existing parent companies Vodafone Group and CK Hutchison Holdings will jointly own 50.1 per cent of the new company. The $15bn deal will be closely scrutinised by the Australian Competition & Consumer Commission, which will examine factors such as its impact on the mobile and fixed broadband markets, as well as the forthcoming auction of 5G spectrum.

CORPORATES
TPG TELECOM LIMITED – ASX TPM, VODAFONE HUTCHISON AUSTRALIA PTY LTD, VODAFONE GROUP PLC, CK HUTCHISON HOLDINGS LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, WASHINGTON H SOUL PATTINSON AND COMPANY LIMITED – ASX SOL, VERTIUM ASSET MANAGEMENT