NBN: What’s CVC and why is it important?

The CVC (Connectivity Virtual Circuit) is a crucial component of the National Broadband Network (NBN) in Australia. In this article, we will explore what the CVC is, how it works, and why it is important for ensuring high-quality internet connectivity on the NBN.

The CVC is a virtual circuit that is used to connect the NBN network to individual retail service providers (RSPs). It allows RSPs to offer their customers access to the broadband services provided by the NBN. The CVC acts as a “bottleneck” that limits the amount of data that can be transferred between the NBN network and RSPs.

One of the key challenges with the CVC is that it can become congested during peak times, leading to slower internet speeds and lower-quality connectivity for users. To address this issue, the Australian Competition and Consumer Commission (ACCC) has introduced a new pricing model for the CVC that aims to encourage RSPs to purchase sufficient capacity to meet the needs of their customers.

The new pricing model, which came into effect in November 2018, includes a variable component that allows RSPs to purchase additional CVC capacity as needed. This means that RSPs can buy more CVC capacity during peak times to ensure that their customers have access to high-quality internet connectivity.

In addition to the new pricing model, the ACCC has also introduced a number of other measures to improve the performance of the CVC. These include a “Fair Use Policy” that aims to prevent RSPs from over-committing their CVC capacity, as well as a “Network Capacity Expectations” policy that sets out the minimum levels of CVC capacity that RSPs are required to purchase.

Overall, the CVC is a critical component of the NBN that plays a crucial role in ensuring high-quality internet connectivity for users. By introducing new pricing and other measures, the ACCC is working to improve the performance of the CVC and ensure that RSPs have the capacity they need to meet the needs of their customers.