NBN Co has begun using a new wholesale pricing model in an apparent bid to persuade more users to choose faster broadband offerings.
The new model uses a formula that offers retail providers bigger discounts to provide higher speeds to individual users. The more bandwidth the providers buy from NBN Co and allocate per user, the greater the discount on their connectivity virtual circuit (CVC) charge.
More than 5 million homes are now able to receive a service, but most of the 2.2 million with an active NBN connection are choosing the lower-speed services – either 12 or 25Mbps. While 12Mbps is less than dazzling, many find 25Mbps more than adequate for general usage; regular games players and other high-end operators however can find a benefit in moving to 50Mbps.
Users of 100Mbps are all but unknown in Australia, with many retail providers not even bothering to offer the service at that speed. It’s not available at all on fibre-to-the-node services.
One recent exception is MyRepublic, which is urging Wollongong, NSW, residents to plump for 100Mbps and offering discounts to encourage the move.