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Changing business models n Australia and the Cook Islands

This paper is for telecoms operators and regulators who are trying to understand how business models for telecommunications have evolved and what this means for them today. It draws on the author’s forty years of experience in Australia and applies it to the specific case of the Cook Islands.

A close friend of mine made some very flattering remarks about this paper:
It’s the first time I’ve read an article with such a holistic and succinct overview of the evolution of telecommunications and the impact of global digitisation on telecoms operating companies providing transport and delivery infrastructures”. Richard Wiatr is a former senior executive and telecoms engineer who has spent 40 years in the industry.

Some operators are currently looking to regulators to fix the loss of revenues from the move into the digital era. This paper puts the issue into perspective and suggests what they should be doing.

See Changing business models

Who will blink first on NBN pricing?

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

Asset valuation for access pricing

The valuation of assets is probably the most important decision regulators will face for a network business dominated by fixed costs because depreciation and the return to capital derived from this valuation will account for well over half of total costs.

In some recent work for Fiji, there was some debate about whether assets should be based on ‘actual’ or ‘replacement’ costs. As the following report shows, my view is that both theory and practice support the use of replacement costs. Asset valuation-revised-1

Pricing in Abundance

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

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