The Australian Communications and Media Authority (ACMA) has said it will require the rebates paid by NBN for failing to meet its wholesale service levels to be passed onto customers by retailers.
As it currently stands, NBN pays rebates to retailers and there is no requirement for consumers to receive any of the rebate itself, despite consumers needing to see some benefit. For instance, the Australian Competition and Consumer Commission (ACCC) previously said one benefit could be a replacement service.
The ACCC last year said it did not want a general pass through requirement that would force retailers to hand rebates to customers, with the one exception being missed appointment rebates.
However, on Thursday, as the ACCC announced it was resuming the NBN inquiry it paused due to coronavirus, ACMA said it had worked with the consumer watchdog on the implications of wholesale rebates.
“The ACMA intends to make rules that will require telcos to: Pass on to affected customers any wholesale rebate received from NBN Co, in monetary form or in kind, should a framework for wholesale rebates be implemented; clearly spell out the retail service levels they will commit to providing customers, including what they will do for their customers when these levels are not met,” it said.
The ACMA said it would release a draft legislative instrument alongside a discussion paper addressing the rebates later this year.
“The ACMA aims to have new obligations in place at the same time as agreement by telcos with NBN Co’s new wholesale broadband agreement, which implements the wholesale rebate scheme,” it said.
Also on Thursday, the ACCC said it was looking for feedback on a response by NBN relating to its entry-level access pricing and its wholesale service standards inquiries.
“These inquiries were launched in response to concerns that NBN access terms were limiting competition and efficiency and risked making NBN products unaffordable for some consumers,” ACCC chair Rod Sims said.
“We are now seeking feedback on NBN Co’s proposed access arrangements with respect to each inquiry. Our current view is that NBN Co’s proposals are reasonable but we want to hear from others.”
If approved, the measures would be included in the wholesale broadband agreement between NBN and retailers that is due to start in December, and be in force for two years.