Updated: NBN will cost ISPs $24 per month at least

Pricing means Australians will likely be charged at least $24 a month as the cheapest Internet available

The National Broadband Network will cost wholesale ISPs a minimum of $24 per month for the most basic plan, according to NBN Co’s business plan.

The information was provided as part of NBN Co’s business plan, which was released earlier today after significant pressure from opposition and industry groups.

The plan revealed a basic NBN connection with 12Mbps downstream and 1Mbps upstream connections will cost ISPs $24 per month. Examples of ISPs include Telstra, iiNet, Internode and iPrimus.

“As well as the access charge there will be a capacity charge for the shared resource between the premises and the point of interconnect,” it said. “This charge is shared across manu end-users on the RSP (retail service provider’s) service and will add around $1 for end-users on average data rates.”

The move means that Australians are likely to pay more than $24 per month for Internet of any type as dial-up fixed-line are gradually removed from use.

The Prime Minister, Julia Gillard, said the $24 price tag was affordable for Australians in a press conference held in Canberra.

“Through the NBN we will be able to get the productivity benefits for our economy,” she said.

The other plans will have the following wholesale costs:

  • 25Mbps downstream/5Mbps upstream: $27 per month
  • 25Mbps downstream/10Mbps upstream: $30 per month
  • 50Mbps downstream/20Mbps upstream: $34 per month
  • 100Mbps downstream/40Mbps upstream: $38 per month
  • 250Mbps downstream/100Mbps upstream: $70 per month
  • 500Mbps downstream/200Mbps upstream: $100 per month
  • 1000Mbps downstream/400Mbps upstream: $150 per month

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More about: etwork, iiNet, Internode, iPrimus, Primus, Telstra

Comments

David Craker

1

I understand the focus on data rates but what about the volume and data volume limits... 1Gb downloads per month on a 12mb per sec data rate is not smart.. It sort of is only part of the question... What are the download limits to be set at... Will there be peak and off paek times as with other providers?

It all amkes a difference in what is offered and whether the takeup is of benefit..

dan

2

indeed... data volume is the big question.. if it's 25 dollars a month for 12mbps with 1 gb of data it's absolutely rubbish.

I guess it depends how they will do it I'd have to assume lines won't be dedicated... if they where then data limit should only be limited to what the line can pull down in a month - i.e 100mbps should pull around 33TB from memory... but almost definitely being shared lines I wonder what data caps they will put... I certainly hope they are going to keep things moving up and not go backwards from ADSL2 caps.......

JohnP

3

I don't think the NBN itself will care what your data cap/limit is, your isp will be paying for backhaul to the ISP's interconnect point + peering to the rest of the web. They are the ones that will want to impose caps, not the NBN.

Hence why the NBN flat fee only covers the last bit of network , similar to naked ADSL + telstra copper line at the moment.

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