The showdown on NBN CVC pricing has been a long time coming. The NBN bestowed an extra 40% of CVC capacity to make lockdown due to COVID-19 more bearable. But it is only temporary. The ending of the 40% uplift inserts a decisive event into what was previously a slow boil. At a time when retail margins are becoming exhausted, something has to give.
Co-authored with Bob James and publishedin Comms Day. read it here Who will blink first on NBN pricing
There Is not much more that I can say about Australian National Broadband Network (NBN) pricing. But recently I had the good fortune to apply the principles of traffic pricing – which I have been urging for the NBN since 2009 – to the new submarine cable for the Solomon Islands. It provides an example of why pricing for abundance is better than pricing to reflect, or worse, to create scarcity. Economuse 2020-02-12
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.