This is the reason your internet could be so slow 5

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If your internet speed is driving you crazy, you’re not alone.

It turns out a power struggle between the NBN Co and telcos such as Telstra and Optus is slowing down internet speeds across Australia.

You might be wondering what they’re bickering about?

Well, it all comes down to a controversial charge of the NBN Co’s – the Connectivity Virtual Circuit usage charge.

Critics of the charge say affordable, high speed internet won’t be a reality until the charge is abandoned.

Both NBN Co and the telcos/Internet Service Providers (ISPs) are pointing the blame for slow internet at each other.

So who is to blame?

Apparently not even the politicians, ombudsman or Australian Competition and Consumer Commission can work it out.

The telcos last week called for changes to NBN Co’s charges, saying if they weren’t changed, consumers such as you would continue to suffer slow internet speeds.

David Forman from the Competitive Carriers Coalition represents telcos including Vodafone.

He said escalating costs for ISPs were limiting speeds and lessening the benefits of the NBN.

“Fundamentally we have is an old-fashioned wholesale-retail margin squeeze, caused by the way the way telcos have to buy services from NBN, but it affects consumers in terms of internet speed,” he said.

“The result is it costs the retailer more money to buy and deliver a service to the customer for which they are getting paid the same, and it squeezes the margin away.

“It could leave retailers unable to provide an acceptable service to end users for a reasonable price.”

Apparently, it’s costing more for ISPs such as Telstra to deliver data through the NBN and it’s affecting their profits.

So what is the CVC charge?

Well, it’s already been reduced twice and currently sits at $15.75 per MB per month.

NBN Co could be just weeks away from making changes to the charge, reports say.

Communications Minister Mitch Fifield said NBN Co were “acutely aware of the issue”.

What do you think? Are you internet speeds frustrating you?

Starts at 60 Writers

The Starts at 60 writers team seek out interesting topics and write them especially for you.

  1. I live in a new estate where we never had an option we could only have the new NBN.
    Let me tell you this is the greatest con that I have encountered since we built this home and if there was some way of getting of it I would be gone in a flash……Not Happy….!!!

  2. This is how incompetent public service which can deliver a service on three times the acceptable cost destroys the future of an economoy. Lets all blame it on migrants, cause thats easy to do compared to holding these big companies and govt accountable.

  3. This is how incompetent public service which can deliver a service on three times the acceptable cost destroys the future of an economy. Lets all blame it on migrants, cause thats easy to do compared to holding these big companies and govt accountable.

    1 REPLY
  4. It’s $15 per Mbps, not MB.. Major difference.

    Still far too expensive

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