Voice Interconnection Rates Slashed: Aussie Broadband’s EBITDA to Drop $3M in FY27
The ACCC’s final report slashes regulated voice interconnection rates, prompting Aussie Broadband to forecast a multi-million dollar EBITDA impact from FY27 and plan mitigation strategies.
- ACCC reduces regulated rates for mobile and fixed voice interconnection services from July 2026
- Aussie Broadband expects EBITDA impact of $3 million in FY27 and $6 million in FY28
- Rate cuts affect Aussie Broadband’s wholesale voice networks NetSIP and Symbio
- Company expresses concern over ACCC’s disregard for fixed network resilience and emergency service implications
- Mitigation initiatives and efficiency improvements planned to preserve EBITDA margins
Regulatory Shift in Voice Interconnection Pricing
The Australian Competition and Consumer Commission (ACCC) has finalized its long-anticipated changes to the regulated rates for voice interconnection services, a move that will reshape the economics of Aussie Broadband’s wholesale voice segment. Effective from 1 July 2026, the ACCC’s new pricing schedule reduces rates for mobile terminating access services (MTAS) and fixed terminating and originating access services (FTAS and FOAS), with cuts phased through to 30 June 2029.
For Aussie Broadband, which operates two Tier 1 voice networks, NetSIP and Symbio, these rate reductions translate into a tangible hit to revenue and profitability starting in FY27. The company estimates an EBITDA impact of approximately $3 million in FY27, doubling to $6 million in FY28. While these figures represent less than 2% of the Group’s guided EBITDA range for FY26, they nonetheless underscore the financial pressure from regulatory recalibration.
Industry Concerns and Company Response
Aussie Broadband’s CEO Brian Maher voiced disappointment that the ACCC’s determination did not fully account for the critical role fixed voice networks play in ensuring emergency service access, network resiliency, and redundancy, particularly in regional and rural Australia. The company argues that fixed-line infrastructure is foundational not only for everyday connectivity but also as a vital backup during mobile network outages and emergencies, including access to the 000 emergency number.
Despite these concerns, the ACCC’s decision stands, prompting Aussie Broadband to explore several mitigation initiatives aimed at offsetting the financial impact. These may include operational efficiencies and strategic adjustments within the wholesale business. The company remains committed to maintaining an EBITDA margin of at least 12.5% of revenue as it pursues its Look-to-28 growth ambitions.
Looking Ahead – Uncertainties and Strategic Implications
The ACCC’s rate schedule currently extends only to 30 June 2029, leaving the post-2029 pricing environment uncertain. This ambiguity adds a layer of complexity to Aussie Broadband’s long-term investment planning in fixed-line networks. The company’s ongoing capital deployment in fibre infrastructure and voice network capabilities hinges on a regulatory framework that supports sustainable returns.
Investors and industry watchers will be keen to monitor how Aussie Broadband’s mitigation strategies unfold and whether the ACCC revisits its stance on the valuation of fixed voice networks’ societal benefits. The evolving regulatory landscape will also influence competitive dynamics among challenger fixed-only providers who rely heavily on regulated access revenues.
Bottom Line?
As Aussie Broadband navigates these regulatory headwinds, the coming years will test its ability to balance investment in critical infrastructure with margin preservation.
Questions in the middle?
- What specific mitigation initiatives will Aussie Broadband implement to counteract EBITDA pressure?
- How might the ACCC’s future decisions post-2029 impact Aussie Broadband’s fixed-line investment plans?
- Will the ACCC reconsider the role of fixed networks in emergency services amid industry pushback?
