The National Broadband Network Co (NBN Co) has announced it will offer rebates on capacity charges for Internet service providers (ISPs) in the early days of the network’s uptake.


The company has announced plans to rebate the wholesale charge for the first 150Mbps per month on its Connectivity Virtual Circuit until an area has a minimum 30,000 premises passed into the service.


Service providers will still pay the same access charges, which start at $24 per month for a wholesale broadband service designed to achieve 12/1Mbps*. However the CVC, which reflects the size of the “pipe” needed to meet the aggregate data usage of consumers, will be rebated to assist a smoother transition to fibre services for service providers.


The NBN has announced move is aimed at reducing the cost and uptake barriers to entry for retail service providers to promote competition in the traditionally closed market.


“NBN Co has been given an objective to create a level playing field in the telecommunications industry. Today’s announcement shows we are doing what we can to ensure enough players also take the field,” NBN Co Head of Product Development and Sales, Jim Hassell said.