Aussie telcos are buying more broadband capacity from NBN – ACCC report

The likes of Telstra and other Australian telcos are buying up more capacity on the National Broadband Network (NBN) in a bid to provide higher speeds to customers, a new report has found.

Recent figures published by the Australian Competition & Consumer Commission (ACCC) reveals that from the quarter period ending December 2017, an average of 1.53 megabits per second (Mbps) per user was purchased, up 38% on the 1.1 Mbps of the previous quarter.

Part of this growth can be attributed to NBN’s temporary credit offer available to telco companies buying 50% more capacity, or CVC (Connectivity Virtual Circuit).

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ACCC Chairman Rod Sims said: “We are pleased to see such a large jump in the CVC acquired by retailers from NBN Co this quarter. With this level of CVC consumers will have faster broadband speeds and hopefully less congestion during peak evening periods.

“We hope NBN Co and retailers can continue to work together to ensure the level of CVC needed for a good customer experience is maintained.”

The ACCC report also showed an increase in the number of services connecting to NBN. During the December quarter the number of services joined rose from around 3mn to almost 3.5mn, representing a 14% increase.

Telstra remains the largest purchaser of capacity, accounting for 49.3% of all wholesale services provided over the network.