ACCC takes intention on the measurement of the ‘broadband tax’ – Telco/ISP
Australia’s competitors watchdog is weighing adjustments to the ‘‘broadband tax’ that will stop the scheme from being utilized by NBN Co to get well “historic losses” for fastened wi-fi and satellite tv for pc companies.
The ACCC opened a session on the finish of final week on the regional broadband scheme (RBS) levy, which is an $8.26 a month cost levied on broadband companies that use non NBN fixed-line infrastructure.
The cash finally goes to NBN Co to fund its “loss-making non-commercial fastened wi-fi and satellite tv for pc companies.”
The ACCC is getting ready recommendation for the communications minister subsequent yr that would change the quantum of losses that the tax pays for.
Notably, the fee will discover “whether or not NBN Co’s historic losses incurred within the provide of fastened wi-fi and satellite tv for pc companies needs to be excluded from the RBS levy calculation (i.e. solely forward-looking losses needs to be thought of).”
“The RBS levy at present recovers historic losses within the provide of fastened wi-fi and satellite tv for pc companies incurred since graduation of the NBN construct part in 2010,” the commission said in a consultation paper [pdf].
“The ACCC at present considers that historic losses concerning the provision of those companies needs to be excluded from the RBS levy calculation.”
The ACCC mentioned that permitting NBN Co to proceed to get well historic losses by way of the tax “might… battle with the promotion of market contestability and aggressive neutrality.”
“An RBS levy that recovers historic losses will probably exceed the loss NBN Co incurs within the provide of non-commercial fastened wi-fi and satellite tv for pc companies,” it mentioned.
“In these circumstances, non-NBN fastened line superfast broadband carriers that pay the RBS levy can be contributing greater than needed to assist get well the loss that NBN Co incurs for the provision of those companies.
“This will end in these carriers being at a aggressive drawback relative to NBN Co within the provide of superfast broadband companies in areas the place non-NBN carriers compete with the NBN.”
The ACCC mentioned that buyers – who finally pay the tax – are additionally deprived by way of higher-than-necessary expenses on their broadband companies.
Different adjustments being thought of embody the underlying modelling used to calculate the tax quantity.
Business submissions are being accepted by way of to December 13.
Whereas the adjustments might finally see the broadband tax lowered, it could in future be payable by extra folks, with the ACCC softening its stance earlier this year on whether or not mobile fastened wi-fi broadband customers needs to be liable.
The web impact of the adjustments may very well be a smaller tax that’s paid by a bigger variety of broadband customers.
NBN Co additionally has different methods of doubtless recovering a few of its historic losses by way of particular entry endeavor (SAU) mechanisms that permit for broadband service value rises over time.