NBN products demystified
- 24 November, 2010 16:55
- Comments 5
The Federal Government has shed more light on the type of products the National Broadband Network (NBN) will offer through the release of NBN Co’s business case summary.
The Government has released a summarised version of the NBN Co’s business case report after discussions with key independents less than 24 before Senate is due to vote on the telco reforms bill.
The bill paves the way for the structural separation of Telstra’s retail and wholesale arms as well as the finalisation of the $11 billion non-binding agreement between Telstra and NBN Co.
Labor had repeatedly refused to release the business case claiming the report contained sensitive information that cannot be released to the public.
The 36-page document covers a number of topics including a detailed timeline for product releases and the types of products offered through the NBN.
NBN Co has noted many times it is committed to be a wholesale-only provider.
According to the summary, customer trials on the mainland are slated to commence in April next year with NBN Co aiming to connect at least one mainland-based ISP.
Customers keen to trial the services will be offered a free subset of products.
NBN Co will offer five different types of product ranges with features to caters for residential and business customer needs. The entry-level product will offer 12Mbps download speeds and 1Mbps upload speeds offered at a competitive price.
Product drop one is intended to be used for the testing phase and involves up to 100Mbps broadband and telephony services.
Product drop two is imbued with entertainment capabilities with ISPs able to stream IPTV services on top of broadband and telephony services down the same cable through a multicast technique.
Product drop three is intended to address the SMB market and has additional functions such as the ability to connect multiple business locations while product drop four allows ISPs to offer speeds of up to 1Gbps for enterprise users.
The last product set boosts reliability for mission critical locations such as hospitals with reduced risk of outages.
Pricing is stipulated to be standardised so ISPs “will have to pay the same amount, irrespective of where they are based”.
NBN Co will also charge the same mount for basic access through fibre, fixed wireless and satellite technology.
Satellite services will be used to service remote locations.
“Based on take up and speed usage growth assumptions, NBN Co anticipates being able to reduce real prices for all products and nominal prices for all products, except the basic service offering, while maintaining an internal rate of return above the Government long-term bond rate,” according to the business case summary.
The Prime Minister, Julia Gillard, claimed this meant the NBNCo is financially viable.
NBN Co expect to be ready to offer its first commercial service by September 2011.
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Comments
singo79
1
To make it quite clear, the Government are simply not going to refer the NBN to the Productivity Commission, nor should they have to.
Did Governtments' past refer all of their infrastructure spending to the Productivity Commission? I highly doubt it, in fact I would hazard a guess that very few infrastructure projects have ever gone before the Productivity Commission.
The NBN is extremely important to our country's future, IMO, therefore a report on a Cost Benefit Analysis is mute.
Of course we need to make sure that the Government doesn't overspend on the network, but fibre optic cabling and installation isn't a cheap process. Though it will be an extremely beneficial investment in Australia's future and the future of generations to come.
Let's not destroy such an important infrastructure investment, but let's make sure that the costs are not allowed to "blowout".
At the end of the day the network is going to repay itself completely by no later than 2032 (at worst), so it's not as though we the taxpayer are not getting our money back. If you pumped the money into schools, hospitals and the like you are never going to see that money again, whereas infrastructure investments through the commercial market will deliver returns in which the government can then redirect into services such as schooling and hospitals.
I will be signing up to the NBN as soon as it runs past my door and an ISP can offer me service. After all, Internode are offering 100Mbps services for around $90/m for 100GB of data. Whereas I'm currently paying $90/m for ADSL2+ service that peaks at 4Mbps for 50GB of data. Plus, under the NBN I'm not required to have an active telephone line that cost $30/m line rental, therefore I'm saving myself $30/m by getting away from Telstra's pathetic copper network.
lorro
2
If the government claims NBN will be cheaper that means their base line 25Mbps plan must be unlimited at 59.99 or less to compete with TPG ADSL2+ unlimited (24Mbps next door to the exchange) I really hope they offer 1Gbps residential unlimited or on a SOHO plan which is not to expensive.
I think the NBN needs to move towards international standards, which means no data caps, most places in the world have unlimited data you only pay for speed.
Suprised
3
In what universe is $35.7Bn + $13.8Bn less than $43Bn? Didn't the price just go up to $49.5Bn?
Also, if 12M premises is 100% coverage, isn't the announcement that 8.3M premises will be on the fibre a massive step back from 93% fibre coverage? 8.3M / 12M is about 70% coverage!
Am I the only person in the country with a calculator?
Hillsy
4
Lorro, I think you will find ADSL2+ will be a thing of the past once the NBN gets rolled. That was the basis of the NBN to start with, so that providers can all compete over 1 medium...fibre. What amazes me is that ppl obviously didn't understand how much money they would save in comms costs per year using the NBN. The first thing I did when Labor got back in was jump on the iiNet site and work out some ballpark costs for broadband+VOIP+IPTV, and compared to what we pay now, we're going to save heaps per year. As far as unlimited data, this should help: http://www.arnnet.com.au/article/354826/pacnet_new_australia-us_fibre_link_bigger_than_nbn/
Taxpayer
5
@Surprised, we are few in number ;-)
And we are farting against thunder here! Conroy/Gillard are desperate to squander our money, just like all Labor governments.
This is the "gift" that will keep on taking...