Since dropping its wholesale prices in December 2017, NBN Co says that it is seeing less congestion in peak-hour times.
Before the pricing changes, there were on average around seven hours in a week per customer that would be congested. This was most noticeable in the evenings and towards the end of week.
“Now, with the change, we have seen from six or seven hours average a week to less than 30 minutes and that is before all of the migrations we are currently processing.” Says NBN Co Chief executive Bill Morrow.
So how is this possible? Well basically, lower wholesale prices for the Internet Service Providers (ISPs) means that they are now able to supply more bandwidth per customer. Rather than what was happening previously where a lot of ISPs were only purchasing limited capacity in order to protect their margins – in turn providing slow and congested connections to customers.