The Impact of a Free Speed Increase on NBN Upgrades for Consumers and Retailers

NBN Co, the operator of the National Broadband Network, has proposed an upgrade that could provide users with download speeds up to five times faster on its fastest home services. This speed boost would come at no extra cost to retailers, meeting the growing demand for higher speed broadband connections. The move is driven by the increasing number of internet-connected devices in Australian households, which is expected to reach 33 by 2026. Data usage per household has also doubled in the past five years, averaging 443 gigabytes per month. The higher data usage is fueled by new applications, entertainment, online gaming, and the emergence of technologies like virtual reality and augmented reality. NBN Co aims to start providing the higher speed products later this year or early next year by increasing the overall capacity of the network. While larger retailers like Telstra and Optus support the plan, smaller retailers may face challenges in passing on potential additional costs to consumers. NBN Co has issued a consultation paper to retailers for their feedback on the proposed changes.