Consultation on Smart Locations build pricing structure proposal (also known as NBAP)

As part of our efforts to  support you in driving uptake of Smart Locations fibre connections, to capitalise on the growing IoT category; in particular high bandwidth use cases, we are proposing to introduce a new fibre standardised build pricing structure to reduce the upfront cost to connect. This will replace the existing Quick Quote and NBAP time and materials build cost recovery model (where applicable). We propose launching this new structure in September/October 2023 following a 20-business day notification period.  

How might the proposed new pricing structure look?  

• Within Chorus Fibre areas we propose standardising the network build cost per connection to $1.5k ex GST. The price would apply to build costs up to a threshold.  Any build cost that exceeds the threshold would be on charged as actual.  There would be exclusions and for those locations/object types that are ineligible these orders would continue to be quoted as Price on Application (POA).  We would see a large proportion of quotes falling into the standardised pricing structure.
• For other LFC and non-Fibre areas, the network build cost would remain unchanged and continue to be quoted as Price on Application (POA).  
• Installation charges to the ETP would remain unchanged as per the UFB services agreement.  
• Copper to Fibre migrations and BS4 connections would be out of scope.

How would this change benefit you?

There would be several benefits including:

1. Providing you with more transparency and your customers with more assurance of costs by moving from a time-and-materials build cost recovery model to a standardised pricing structure (where applicable).   
2. Providing a more streamlined, consistent and on average a faster quote turnaround time, whether ordered via the Complex Fibre Portal (CFD) or Chorus Portal (COM).  Rather than receive an estimate, you would receive a quote upfront for acceptance prior to design build commencing. This proposed new structure would see the disestablishment of the Quick Quote process.  

Feedback and contact

We would like to know what you think of the new pricing structure we’ve proposed. Consultation is open from today until 26 July 2023. You can provide feedback via this online form or contact your account team to arrange a meeting to discuss further. We’ll release an overview of what we’ve learnt and whether we’ll be proceeding shortly after the consultation closes.