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
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
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.
Is it possible – or wise – to have unlimited data over wireless? It seems that it is.
In this column, Australia is compared with Finland where one telco recently reported more data was carried over its mobile network than over its fixed networks. That must be a first for any operator with both fixed and mobile networks. In Finland and some other European countries unlimited mobile data is offered. This is not the case in Australia – yet.
For more, click economuse-2016-10-02