nbn co commits to new rebate scheme

nbn co has agreed to improve the rebates it offers to its retail service provider customers for delays connecting customers’ premises or repairing network faults, in response to pressure from the ACCC.

The company has submitted a court enforceable undertaking to the ACCC aimed at improving the rebates it pays to wholesale customers for not meeting its service level time frames for connections, fixing faults and meeting scheduled appointments.

Under the new scheme, nbn co will pay a $25 rebate to retail service providers for every late connection and fault rectification, and introduce a new $25 rebate for each missed appointment.

The company has also agreed to simplify the processes involved in retail service providers claiming and receiving rebates.

nbn co will require retail service providers to take reasonable steps to ensure customers benefit from the improved rebates. This could include passing on the rebates directly, offering substitute services while a fault is being fixed or providing other benefits.

ACCC Chair Rod Sims said the agreement is expected to lead to improved nbn connections and fault services performance across the board.

“We have had constructive engagement with nbn co and RSPs as part of our inquiry into nbn wholesale service standards. The undertaking provides stronger incentives for nbn co to maintain a high standard of operational performance and so will result in a clear benefit to consumers,” he said.

nbn co made the undertaking after the ACCC provided the company with an interim access determination the regulator has proposed. The ACCC has been evaluating since late 2017 whether regulation is necessary to improve the customer experience by lifting nbn wholesale service standards.

“This undertaking by nbn co addresses some of the issues highlighted in our inquiry, but there are still a range of complex matters to consider. We will continue to engage with industry and other stakeholders during the next phase of our inquiry,” Sims said.

Image courtesy nbn co.

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