The Australian Competition and Consumer Commision (ACCC) published NBN Co’s replacement module application on 2 July 2025, which will provide the framework for revenue and pricing for NBN Co over the period July 2026 to June 2029.
We were pleased to assist NBN Co with elements of its application, including two expert reports which have been released publicly alongside NBN Co’s application:
Attachment 2.1 - A report on the competitive environment for NBN Co, which explains our view that, despite its near ubiquitous market reach and substantial market share, NBN Co faces a greater degree of competition than might initially be apparent. In part, this stems from the ability of competition in lower-priced products to ‘anchor’ NBN Co’s pricing of higher-priced, higher-quality products.
Attachment 11.1 - A report on NBN Co’s weighted average cost of capital (WACC). The WACC is a key building block for capital-intensive businesses such as NBN Co, and we have developed a methodology for estimation that meets the Undertaking requirements that the WACC should be commensurate with the efficient financing costs of a benchmark efficient entity with a similar degree of risk as that which applies to NBN Co having regard to:
- The objective of producing reliable estimates of the market cost of capital in a wide range of market conditions; and
- The objective of promoting stability in the rate of return over time.The ACCC will now consider and consult on NBN Co’s proposal with a view to issuing a replacement module determination in time for the commencement of the new regulatory period on 1 July 2026.For more information, please reach out to our economists on the project, Warwick Davis, Dinesh Kumareswaran, Stephen Gray, James Key.
