Nextgen halts NBN aggregation

National Broadband Network aggregator Nextgen is blaming system changes for the company needing to increase prices and cease offering its product to new customers.

Nextgen has told customers using its NBN aggregation product that it will need to raise prices by 50 percent in order to accommodate apparent system changes made by NBN Co.

Nextgen first announced its aggregation product in 2011 . The product was designed to allow smaller retail service providers the ability to expand out to reach all 121 points of interconnect (POI) for the NBN.

Three years later, however, Nextgen is moving away from the offering. In a letter recently sent to retail service providers, and obtained by ZDNet, Nextgen states that NBN Co will be making "further technical changes" to its systems on January 6, 2015, that will require Nextgen to make investments in its own telecommunications infrastructure, and, as a result, the company has decided to cease taking new orders, and put a hold on orders placed but not yet provisioned.

The company announced that it would also be increasing the cost by 50 percent in February 2015 for existing customers who opt to stay on.

"In light of these changes, we are offering you the opportunity to churn all of your existing NBN Virtual Connect services currently with us to an alternative supplier without incurring any early termination fees, provided that all such churns are notified to us by COB November 14, 2014, and completed before December 1, 2014," Nextgen told retailers.

"We are committed to assisting you as reasonably required with migration of your NBN Virtual Connect services to an alternative supplier if you elect to take up this opportunity. We appreciate your patience and support during this difficult period."

A spokesperson for the company told ZDNet in a statement that Nextgen has been in contact with its customers since 2012 about this process.

"To plan and provide NBN VC assistance, Nextgen have maintained constant customer contact since 2012. We have now asked that, by 14 November, customers confirm their decision to move from our NBN VC offering. This will allow Nextgen to support the migration experience with minimal service disruption," the spokesperson said.

ZDNet understands that the only change NBN Co is making to its systems around this time is to the UNI-V port that provides voice services over the NBN. Nextgen has yet to comment on this aspect.

A spokesperson for NBN Co said that NBN Co is "implementing an upgrade to the network to improve functionality and performance".