NBN Co is releasing a new discount model for CVC. CVC (Connectivity Virtual Circuit) is the monthly charge for network capacity which serves multiple end user premises. When NBN Co introduced the CVC the effective unit price per Mbps dropped from $17.50 to $15.75 in June 2016. This was followed by a further reduction to $15.25 in December 2016. It’s now going to fall depending on how much CVC retailers purchase per end-user.
With the news that five million premises now have access to the NBN it’s good to see pricing is getting some attention. Hopefully, if the reduced pricing is passed on to consumers, it will boost connection numbers. Currently, fewer than half of consumers actually connect to the NBN when it becomes available and a third of Aussies don’t know NBN connection is mandatory.
Faster internet connectivity is critical for businesses. While consumers will see benefits when it comes to accessing online services, businesses providing services need the internet today. If this pricing model helps that uptake then it’s a good thing.