Australian Competition and Consumer Commission (ACCC) has proposed a regulatory framework to enhance service quality and safeguard consumers under the next National Broadband Network (NBN) cycle beginning July 1, 2026. The draft determination focuses on improving accelerating service delivery, and ensuring that investments by NBN Co are efficient and justified.
A major component of the proposal is the introduction of enhanced benchmark service standards aimed at delivering a better customer experience. The ACCC is targeting reduced connection delays, faster fault resolution, and improved network performance. These measures are particularly important for users on copper, fixed wireless, and hybrid fibre coaxial networks, where service quality has historically lagged. The regulator is also pushing for improved communication, including timely notifications when technician appointments are rescheduled.
The draft includes new benchmarks to ensure that network capacity can support retail broadband speeds and address congestion issues. This comes as demand for high-speed connectivity continues to grow, driven by digital services, cloud usage, and remote work. The ACCC emphasized that reliable broadband is essential, especially for regional, rural, and remote communities that depend heavily on stable internet access.
Consumer protections are also being strengthened through changes to entry-level broadband services. The ACCC has proposed that 25/10 Mbps plans become the standard entry-level offering from mid-2027, replacing lower-speed tiers. Importantly, NBN Co has committed to pricing 25/10 Mbps plans at the same level as existing 25/5 Mbps plans starting July 1, 2026, effectively improving value without increasing costs. This shift reflects rising demand for higher upload speeds to support modern digital applications such as video conferencing and large file transfers.
On the financial side, the ACCC has taken a stricter stance on cost efficiency using the building block model to determine allowable revenues. The regulator has proposed a lower annual building block revenue requirement compared to NBN Co’s submission, citing concerns over inefficient or imprudent spending.
ACCC is forecasting capital expenditure of $6.9 billion (real FY2024) for the 2027-29 regulatory cycle, which is about 18 percent lower than NBN Co’s proposal. Forecast operating expenditure is set at $7.89 billion (real FY2024), slightly higher by $5.1 million compared to the company’s estimate. The ACCC has also proposed including $10.4 billion (real FY2024) of capital expenditure in the regulated asset base for FY24-26, approximately 3 percent lower than proposed.
The weighted average cost of capital has been adjusted downward, with preliminary estimates of 6.49 percent for 2026-27, 6.52 percent for 2027-28, and 6.56 percent for 2028-29. These revisions are intended to ensure that financing costs remain reasonable and that consumers are not burdened with excessive charges.
The regulatory framework continues to operate under the Special Access Undertaking, which structures regulatory cycles of 3 to 5 years and enables periodic updates through replacement modules. The current cycle will end on June 30, 2026, making this determination critical for setting the direction of Australia’s broadband market.
ACCC’s draft determination reflects a balanced approach that combines stronger service standards, improved baseline speeds, and tighter cost controls. By aligning investment efficiency with enhanced consumer protections, the regulator aims to ensure that the NBN delivers reliable, high-quality, and affordable broadband services across Australia.
BABURAJAN KIZHAKEDATH
