nbn™ sweetens the deal for business and its own bottom line

nbn™, the company building Australia's National Broadband Networ (NBN), has adjusted its wholesale prices so that retailers offering business plans get the same price relief as previously offered for the consumer market. After many complaints about the cost of its backhaul services (connectivity virtual circuit, or CVC), nbn™ …

[aberglas]

Businesses do not spend much time on Netflix

Most businesses have minimal need for video. The occasional webinar etc.

So they actually have less bandwidth demand than home users with teenage kids.

It takes very little to power the web. Even most cloud servers can chug along in the background without much bandwidth.

[mathew42]

CVC revenue cuts require a rise in AVC revenue

NBNCo revenue is primarily sourced from AVC & CVC charges. Discounting of the CVC price means that AVC prices cannot be discounted. The effect of this is to push down the demand for faster speeds because prices are higher. Top notch strategy if your plan is to depress the demand for faster speeds.

Labor's plan was always for CVC revenue to increase as a portion of total NBNCo revenue.