CVCs – Is pricing crippling the NBN?
This week, Bill Morrow announced another tweak to CVC pricing which seems to imply a $1.75 cut in the current $17.50/Mbps CVC price as early as July. But even with this and tiered discounts (for which an implementation date has yet to be announced), CVC costs per end user are going to be double what the sector is looking for.
In the PC world we have seen that bigger chips and improved performance have been closely followed by more sophisticated software that eats up the new capacity. But, we have a chicken and egg situation with the NBN. We know that users are not prepared to pay for speed. Users will not need more speed until the applications require them. And the applications will not arrive until users have the speeds to use them.
We can cut through this impasse and unleash innovation if nbn™ Co. turns on speed with just one or two AVCs (say, up to 100 Mbps and unlimited). It would catapult Australia to the top of global speed ratings. More importantly, Australia would become the global lab for developers looking for ubiquitous, true broadband.