👉 Background: NBN Co, the company behind the national broadband network, has had its fair share of controversies. The drama started back in 2009, when the government promised us all ultra-fast internet.

👉 What happened: More than a decade later... it ain't that great. Now, NBN Co has revealed sneaky plans to raise its prices for wholesale customers Telstra, Optus and TPG Telecom... who will likely have to pass on those price rises to consumers.

👉 What else: NBN is blaming the hikes on competition from Elon's Starlink and telcos' 5G fixed wireless services. In other words, it's worried about substitution risks.

🔔 What's the key learning?

💡 When it comes to business, there are generally five forces of competition that can influence a business' profit potential.

💡They are: the threat of new entrants, the bargaining power of suppliers and buyers, the intensity of rivalry and the threat of substitution. This is where substitute products or services displace another business' products or services.

💡 The threat of substitution is highest when competitors offer more attractive or low cost alternatives. NBN reckons it could lose 263K customers this financial year and more next year... So it plans to increase prices to increase its total revenue with a smaller customer base.