NBN Co boosts earnings by nearly $1.1 billion

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Over the past 18 months, a significant turnaround in the company’s financial position has continued, likely fueling claims by retail telecom operators that NBN Co can afford larger reforms to its wholesale pricing structure than it has offered.

While NBN Co has proposed ending capacity-based charges for higher speed tiers, it wants to keep them for lower speeds. Retail ISPs that resell the national network’s services want these fees to be scrapped entirely because they make monthly costs unpredictable and squeeze margins.

But NBN Co argues it has the right to cover fair costs, increase revenue to fund infrastructure upgrades and must maintain an investment-grade rating to secure new funding.

Overall, the company increased its sales in the first half by 12 percent to 2.5 billion US dollars.

Subscriber costs paid to Telstra and Optus to move customers across their network and onto the NBN also fell from $809 million to $126 million in the first half.

“Strong results were underpinned by new customer additions and strong demand for higher-speed broadband plans,” said NBN Co.

NBN Co connected an additional 200,000 buildings to the national network in the six months ended December 31, bringing the total to 8.4 million buildings.

The company still has $7.4 billion in federal debt to pay off by June 2024.

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