Pressure builds on government to drop NBN wholesale prices

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Telstra chief executive Andy Penn has joined the chorus calling on the Morrison Government to lower wholesale prices for the National Broadband Network (NBN):

“Unfortunately, because of where wholesale broadband prices have gone, basically all operators are losing money reselling the NBN, and therefore some — and they’ve said it publicly — are looking at 5G to bypass the NBN,” he says.

“And that’s not necessarily a good thing. Unless we get the pricing structure right, we’re going to create this unnatural dynamic in the market which biases technology for reasons other than what’s the best technology for the customer”…

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.