NBN Co uses forum to get pricing message across
- 15 April, 2011 16:52
- Comments 9
The company behind building the national broadband network, NBN Co has taken to popular forum, Whirlpool, to supply comprehensive detail on its pricing model.
The forum post has attracted a fair bit of debate from industry pundits such as Internode’s Simon Hackett and NextDC’s Bevan Slattery on various aspects of the pricing structure.
NBN Co spokesperson, Scott Rhodie, said in the forum it took consultation with the industry fairly seriously and wanted to open a new avenue, and transparency through engaging via Whirlpool.
He addressed reasons for the pricing structure and alluded to comments made by NBN Co head of product development and sales, Jim Hassell, that requirements for wholesale pricing was to payback the cost of the network plus generate an appropriate return.
“I noted from some posts that people don’t think this is a good goal, but it is the goal we’ve been set,” Rhodie said in the post. “Hence, in this context, it comes down to what we think is the best (i.e. the most efficient and equitable) way to earn enough revenue to cover the costs, plus an appropriate return.
“As discussed in our corporate plan we expect a number of our wholesale prices will decline over time, based on expectations of increased usage. We’re being as open and honest as we can about everything to ensure the Australian public get the best deal from the NBN.”
Rhodie said it tried to make a balance so that even more end users will come on and purchase higher speeds than it predicted, which will then enable it to lower the usage and possibly access charges.
He made a final point, saying the NBN Co wholesale pricing construct (access charges and usage charges) is also used in other markets. NBN Co unveiled the pricing structure in December.
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.
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Comments
TPG User
1
So I have TPG, 500GB at 24Mbps + HomePhone for $60 a month.
Will I get the same deal on NBN? ANSWER = NO.
So NBN........ DIE ALREADY! Nobody cares about a 43Billion dollar network TAX PAYERS CANT AFFORD!
Make Telstra fix their copper network........ end of story.
Liam
2
Hi TPG User,
Do you actually get 24Mbps now? Last time I was on ADSL2+, I was paying for 24, but getting 5Mbps tops. Imagine if you bought a car that could only do less than 25% of its advertised top speed? You'd demand a refund.
Telstra had no intention of investing money into its fixed line network, and the quality of telecoms in this county is going downhill. If you live in a new suburb (less than 5 years old), chances are Telstra installed sub par equipment that means that residents will never be able to receive ADSL2+.
So, yay for you, you can currently get a good deal. The rest of us would like one too.
B
3
I'm all for the NBN, but the current pricing fiasco is worrying. Whether or not this ends up being a real issue is still to be seen.
I currently have a good ADSL 2+ connection which obtains about 10-13Mbit/s . I don't for a second think that I'm in the majority here as far as speeds go, so all in all, I'm reasonably happy with my connection, my isp, the price and the quota I get a month (which is 150GB).
I know there are many people who either can't get ADSL because they are either a) too far away from the exchange or b) have bad copper or other limiting infrastructure on their line. In addition, I know many people who are stuck in the outer lying reach of ADSL and are lucky to get 1.5Mbit/s.
Primary, I would love the NBN so that I can get IPTV, stream video that I currently pay for in higher definition and be able to make cloud based backups in a reasonable time frame. It would also be good to have a service which isn't dependent on the weather (quite literally).
But if I'm not able to get a similar deal to what I do now on ADSL, then I would rather stay on ADSL and I don't think I should be forced off it when the fiber optic comes through. It was interesting hearing about similar situations in Tasmania where some of the satellite/wireless services will be in operation. Some of these areas are currently serviced by ADSL2+ and users currently have higher speed connections than will be offered through the NBN. From memory they were told they could stay on the ADSL connection. I wonder if the same will be said for people close to exchanges.
John
4
I'm with TPG and get 16Mb/s download most of my clients have similar speeds I regularly go over my 200Gb downloads per month, Exetel have pricing for 25Mb/s @ $25 + 0.50 Per Gb = $125 per month min for what I currently pay $50 and there is no guaranty that you will get 25Mb/s for those that say it will be faster, the only people better off are those using less than 10Gb per month.
John
5
Hi Liam, my car is capable of doing over 200Kph but I am only aloud to travel on most streets at 50 - 60Kph don't think that's going to change soon,
NBN will cost more for most people & they won't notice any difference in speed, I still have clients paying $10 for dialup, will having NBN mean not paying for line rental or if you want a phone line will you still have to pay $20 + and if it come with the fibre will phone calls be counted as data downloads?.
Kevin
6
The bean counters are at it again. Instead of a simple pricing system they come up with something that would make Microsoft's pricing look logical.
Several issues. Using Whirlpool as the medium for releasing information has done nothing but created dozens of pages of varying opinions, none of which bring light to anything.
If NBN charges are greater than the current DSL charges then ISP's will find many being forced to take up a plan that delivers less than their current ADSL plan. This will have an enormous negative impact on online businesses growth and Internet usage.
The so called average D/L of 30 gig/month is flawed and ignores the recent uptake of ISP offerings of 60-200 gigabyte D/L ADSL2+ for under $50/month. As soon as online movie viewing and rental becomes the norm even 200 gigabytes may be regarded as inadequate.
As far as recovering the outlay people should be viewing the tax funded part of the infrastructure as an essential service with no aim of recovering the cost. The same should apply to the roll out as it does with roads. Lay it, Maintain it via normal taxes.
This would bring down the charges considerably which would result is a greater uptake and usage resulting in a more viable business for ISP's. More taxes for the Federal coppers.
SpellingBee
7
John, you mention you're "not aloud" to drive your car. Does that mean you have to drive it really quietly?
Greenfield
8
I really appreciate the fact that you've set up your own website and have factually gived to the world your thoughts. I admire your work and feel I can concern to what you've done. Most people can't even imagine having such talent. I hope that you know how lucky you are. :) Good luck to you in all your aims. :)
Francis
9
Just to answer the Q about VoIP phone calls and costs once the NBN is built.
VoIP-to-VoIP calls are just data with no switching equipment needed by the broadband provider. They will work on a 256 Kbps connection, so the each-way data consumption of VoIP is something less than 14 MB per hour of conversation - i.e. virtually nothing.
However VoIP calls to a copper line require exchange switching to the destination copper line, which is why VoIP providers charge for them, recovering the wholesale cost of the exchange service as billed by Telstra.
So I say with confidence that competition for NBN customers will produce a situation whereby calls between VoIP numbers on the NBN will be free, since they essentially cost the RSP nothing. But calls to a copper line will have a nominal charge, so expect to see a $5 bundle fee for unlimited national copper calls from many providers. By 2020, most folks wont get any value from the copper-call bundle, as the handful of 10-cent connections to by-then very rare copper numbers would be cheaper to pay for separately.