The review of September 2018 prices shows that there has not been much movement on the major issues identified with retail broadband prices:
1. Lack of affordable entry-level prices – this is still an issue despite the new NBN Entry Level Bundle; but too recent to be reflected in the results discussed here.
2. Poor take-up of high speeds – slightly better thanks to new High Capacity Bundles.
3. Increasing pressure on ISP margins due to CVC pricing (leading to under-provisioning) – still true, with full impacts felt when the migration to NBN ends.
4. The growing threat (to the NBN) of increasingly competitive mobile broadband – no change.
More details at Economuse 2018-10-04
The NBN is in the middle of yet another industry consultation on CVC pricing. Based on its press releases, the bundling of AVC and CVC pricing is a revenue neutral exercise. There has been an enthusiastic adoption of its bundled 50Mbps service. But, will its last beyond the NBN’s special promotion period?
For more, see Economuse 2018-01-29
The Money is broadcast every Thursday and over 30 minutes tries to understance a topic through interviews with experts.http://www.abc.net.au/radionational/programs/themoney/
On 2 November, its chosen topic was “Fibrte Optics – A look at Australia’s NBN” which set out to explain why “Despite the billions of dollars spent on the National Broadband Network, Australia has continued to slide down the international rankings when it comes to broadband speed and equity of service…Why has the NBN been such a debacle and what can be done to fix it on this week’s episode of The Money”.
The four experts interveiwed were:
Dr Tooran Alizadeh
Director of Urban Design at Sydney University’s School of Architecture, Design and Planning
Independent telecommunications analyst
John de Ridder
Independent telecommunications economist
Laureate Emeritus Professor, University of Melbourne.
Professor Rod Tucker and I may disagree about the NBN’s technology mix but we have found common cause in the problems with the current business model and how to fix it.
We argue that the volume of data transferred should be the basis of wholesale charges for the NBN, not the bandwidth provided to the user.
We also argue that all users should have full access to the bandwidth capabilities of the particular technology connecting their premises.
For more, read How to fix the NBN
It is not generally appreciated that the nbn™ has never claimed that CVC is backhaul. It says it is only a pricing construct. This is a follow-up to last week’s column ((the Blame Game – Cutting teh Gordina Knot) explaining how CVCs introduces congestion when it does not have to. There is a better way to charge for usage that will unleash the economic potential of the NBN. See Economuse 2017-8-10