Why Only 6 Month Introductory nbn Deals?

OzyBe on 29/10/2021 - 10:14
Last edited 29/10/2021 - 10:46 by 1 other user

I am sure this has been asked before, but what is the actual reason why NBN providers only offer 6 month introductory deals?

I know if I was an NBN provider, I would prefer to keep a customer and make a smaller profit, rather than having them churn out and making no profit.

The only thing I can think of, it that NBN Co themselves have some special wholesale offer that they pass on the provider, that itself only applies to the first 6 months….. but that just raises further questions, such as what would be in it for NBN Co to make that offer.

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  Twix on 29/10/2021 - 10:46

  nbn cuts the wholesale AVC cost for 6 months to test the market, make more money when users stay on the faster plan after 6 months and give a rebate to ISPs. At least 3 alternative wholesale pricing models are being looked at.

  "NBN Co considers that its ability to offer discounts in certain situations remains an important part of its overall approach to pricing, and leads to more efficient pricing outcomes," the company said.

  "They also allow NBN Co to determine whether price changes will achieve their intended outcomes, without being exposed to unacceptable long-term commercial risk.

  "If NBN Co were not able to employ discounts, we would be less likely to test and then offer, changes to our prices."

  NBN Co offers to axe CVC in exchange for yearly price hikes

  NBN price inquiry 'encouraged' to give 'in-depth consideration' to keeping CVC

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  dizzle on 29/10/2021 - 11:19

  +1

  I know if I was an NBN provider, I would prefer to keep a customer and make a smaller profit, rather than having them churn out and making no profit

  Because once most people are on a system/contract they are less likely to change. It's easier for them to just pay the bills than to look for someone cheaper. It's the same for mortgages, car insurance, energy suppliers.

  If someone tells the company they're leaving they MAY try to keep them. I'm not saying it's a good thing, just saying that's how it is for most people.

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  Mechz on 29/10/2021 - 12:14

  Interestingly I got my bill today and it shows I've been put back on the 6 month discount after it finished a few months ago. $89 for 250/20 plus a $10 discount because I have my $25 mobile on the same account. Happy days.

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    dust on 29/10/2021 - 14:37

    Who are you with?

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      Mechz on 29/10/2021 - 14:41

      +1

      Mate