Letter to the Editor in response to Bill Morrow’s comments on CVCs and market behaviour.
Who is to blame for poor speed and poor performance on the NBN? The pricing of the NBN is certainly knotted. It is more complex than it needs to be and that complexity leads to the current arguments about speed and performance.
VHA’s public submission to the nbn seems to have influenced its CEO, Bill Morrow, in his announcement that he will be looking to revise pricing to “have a minimum assurance of a certain quality of product”. But, VHA’s proposed rebalancing of NBN pricing would some matters worse.
There is a simpler pricing regime that will improve both speed and performance and remove the blame from the nbn.
Rural and remote areas will continue to struggle to keep up with urban telecommunications despite the progress that has been made with initiatives such as the Mobile Black Spot Program (MBSP) and the NBN fixed wireless and satellite. A more radical approach is needed as we consider updating the Universal Service Obligation, public safety network options and mobile roaming. Instead of more expensive small gains at the margin, or counter productive roaming arrangements, we should take a large step forward by having the Commonwealth, States and MNOs work together.
To read more, click Economuse 2017-2-03-safety net
I have had the good fortune to work with Bob James (we developed the TransAct NBN Mark I business case) and Robin Eckermann (the Australian father of FTTN – 10 years ahead of the Commonwealth).
We have developed the idea attached; which could be a game changer for rural and remote customers. The concept is novel but not rocket science. Aceptance and execution will be tricky.
The two major problems with the National Broadband Network business model are the pricing structure and the future level of prices.
In November 2016, the nbn conducted its third secret consultation on CVCs; a controversial aspect of its pricing structure. It is still fiddling with a hopeless construct. The pricing structure is too complex, does not lead to affordable retail prices and will not lead to the transformational outcomes expected from this broadband project.
Worse, the nbn clings to the hope that it can turn a profit on a very expensive project which was priced initially to smooth migration from legacy copper networks. This will mean increasing wholesale revenues per line (ARPU) over time; which has not been the case historically for broadband ARPU.
For more on the latest consultation, read economuse-2016-11-30