50Mbps Is The New 'Sweet Spot' For NBN Customers

Image: NBNCO

NBN Co announced their half yearly financial results today, highlighted by a doubling in revenue for the six months to December 31, 2017. Further to this announcement, the company revealed that they are already seeing increased uptake on high-speed 50/20Mbps since offering wholesale discounts in December - and they expect a million users to be on the 50/20Mbps tier by the end of the year.

As part of a restructure back in December, NBN Co announced that they would be offering discounts on wholesale retail bundles in an effort to increase uptake of higher speeds. At that point in time, around 80 percent of users were on 25Mbps plans or less.

In the report released today, the number of premises on 25Mbps or less still sits at 82 percent for the six months up to December 31, 2017.

Image: NBNCo

However, NBN Co chief executive Bill Morrow revealed that the number of end users on 50Mbps plans has grown by 48% since they cut prices on wholesale bundles.

"Before we launched the promotion in December, there were 140,000 end users on 50Mbps plans. That’s now increased to 207,000. And we expect that to be more than 1 million by the end of this fiscal year."

The increased percentage of users on higher speed bundles should help the NBN to recoup some of the losses that will occur as a result of the pause on Hybrid Fibre-Coaxial (HFC) connections.

The report revealed that the cost of these HFC connections - which are still on hold indefinitely, until testing is complete - has risen and could potentially cost taxpayers a whole lot more than expected.

Although initially planned to speed up the rollout, the HFC network has been a constant source of headaches for NBN Co. With costs continuing to balloon, the increased uptake of higher speed plans across the network will come as some relief for NBN Co and potentially result in higher revenue, with Morrow also stating that new orders of the 50Mbps tiers are up ten-fold.

The NBN has long planned to reach a target of $52 revenue per user once the rollout was complete, but that figure currently sits at just $44 to the end of December, 2017. Morrow now concedes it is unlikely that NBN Co will hit that target by 2020.


Comments

    The issue is that marketing has been a bit slack for some ISPs to tell existing customers they can upgrade from 25/5 to 50/20 with little or no cost due to the wholesale price drop. My ISP didn't tell me I found out by sheer concidence in late January.

    Check your plans and upgrades.

    Yeh that's great except my fttn line is only delivering 30 megabit, and the quote that I paid $660 for came back as $14,000 to run fibre the 750 meters from the node to my home.

    You also need to consider that many people aren't bothering with 100Mbps plans because they very unlikely to see speeds above 50Mbps anyway (unless they lucked out and have FTTH).

    I'd gladly pay for 100Mbps if I knew I was going to get speeds substantially above what a 50Mbps plan could give me, but based on peoples experiences it seems it's not worth even bothering.

    Crap, they removed the 25 Mbs, you don't want to go down to 12 Mbs and get offered the 50 Mbs plan for the same price as the old 25 plan.
    The speed improves to 30 Mbs so you're vaguely happier.

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