NBN Co to use new price model to lure business

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NBN Co to use new price model to lure business

Scraps long-delayed Ethernet offering.

NBN Co has scrapped its delayed business Ethernet product construct in favour of a “capped” pricing model for business services.

The business Ethernet products have been delayed several times, with the last delay pushing back the launch until the end of the year.

But NBN Co said that the results of a consultation with industry had led it to change its mind on the best way to get businesses onto the NBN.

“We’ve taken on board the feedback provided by a number of our retail service providers and have developed a new pricing model to enable those offering high-speed broadband, voice services and after hours care on the NBN access network to market their products at a more cost effective price for their business customers,” NBN Co’s executive general manager of  product, sales and marketing for business Ben Salmon said in a statement.

“NBN Co is well positioned to deliver business-grade services at competitive market prices to unlock further choice and competition for Australian business.

“Today’s announcement demonstrates our ongoing commitment to adapt and optimise our products and pricing in order to keep up with market trends.”

NBN Co said it wanted to chase “medium and enterprise businesses, those with between 20 and 200+ employees, which represent around 11.7 per cent of Australia’s total business market”.

The network builder is hoping to secure up to 20 percent of its total revenue from the business market, though its recent move to chase enterprise accounts has caused consternation in parts of the industry.

NBN Co said that the prices paid under the new model would ultimately “vary based on the amount of bandwidth purchased by retail service providers each month, with NBN Co’s higher speed tiers expected to deliver the greatest reduction in overall costs”.

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