NBN Co has announced that it will reduce the connectivity virtual circuit (CVC) recurring charge for retail service providers (RSPs) from $20.00 per Mbps to $17.50 per Mbps.

In a letter published online, NBN Co informed RSPs that the CVC recurring charge would be lowered under the wholesale broadband agreement price list by 12.5 percent, effective 1 February 2015.

The charge, which reserves bandwidth to a consumer from the point of interconnect (POI) and is paid in addition to a general access charge, had come under fire from RSPs who claimed that it would reduce competition by pricing some providers out of the market.

Copies of the WBA Price List showing the changes in mark-up, as well as with all the changes accepted, are available online.

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