Growing Calls for CVC Removal

The connectivity virtual circuit (CVC) construct adopted by NBN Co has been now been addressed by some of Australia’s largest telcos, including Telstra, Vocus, and Vodafone.

Each has confirmed their call for NBN Co to address the pricing construct which has been referred to as a “download tax” which sees the charges being passed onto consumers.

Telstra CEO Andy Penn shared his thoughts in a blog post yesterday. Penn highlights Australia’s NBN prices are some of the highest in the world already, following the commission of a study by Link Economics, which formed part of Telstra’s submission to NBN Co.

Vocus shared the introduction of their submission, reported by itNews. Vodafone was the first to speak out against the CVC price modeling with the submission introduction released in limited access here.

Others that have publicly spoken against the CVC pricing model include Optus and Aussie BroadBand.

NBN Co released information about the new pricing model in June, launching its new discount model for the CVC charge to help improve consumer experience on the nbn™ network.

We encourage our RSP members to provide feedback to NBN Co regarding the current pricing model and how it affects your business.