NBN SAU variation: Floor and Ceiling Modified Pricing Options

ACCAN recently submitted to a consultation on the NBN Special Access Undertaking Variation: Response to ACCC Draft Decision – Modified Pricing Options.

In our submission ACCAN expressed our qualified support for the proposed pricing framework. We noted that:

• The pricing framework should be accepted insofar that it promotes the objectives of pricing certainty, retail competition and is consistent with the long-term interests of end-users;

• Option 3 is the preferable pricing option in ACCAN’s view.

ACCAN noted that the proposed ‘floor and ceiling’ pricing framework represents a second-best framework for the pricing of NBN services. However, notwithstanding that the framework does not reflect the ideal theoretical pricing framework, in substance the proposal sets out a reasonable approach to the pricing of NBN services and provides for reasonable pricing outcomes for consumers.