Affordable nbn™ - Is it a pipe dream or reality?

Two industry leaders quoting on the nbn™ recently.

Phill Britt in Reddit and ITNews...
Aussie Broadband managing director Phillip Britt believes affordable gigabit speeds in Australia are still “a while” away, requiring - in part - “a change of mindset at NBN Co” to become a reality.

“I think it will be a while before we see affordable gigabit here,” he said.

“Given only a small part of NBN has been built as FTTP [fibre to the premises], and they are limiting HFC and FTTC [fibre to the curb] currently to 100Mbps, it’s going to require a change of mindset at NBN Co to achieve this.

The hope is that a writedown of the value of the NBN would mean NBN Co is under less pressure to seek high financial returns, and could therefore drop its wholesale prices.

Britt believed a writedown could have a positive effect on 100Mbps prices. These are currently subject to a special pricing promotion, though the long-term future of the discount is unclear.

“I believe we will see the price of the 100Mbps tier reduce over time but it will require a government writedown of the NBN for this to occur,” he said.

“They [NBN Co] can't hold onto the $51 average revenue per user (ARPU) amounts they are trying to achieve [by 2022] because the mobile guys will wipe the floor with them.”

Bevan Slattery (Founder of Superloop, Megaport, NEXTDC and Co-Founder PIPE Networks) wrote on LinkedIn...
...and this is an election winner. 
The NBN was supposed to be "fast and affordable." It can't be unless Government brings $20B on budget and call it a social investment. 

Once done pricing can drop by $20 and everyone can get fast, affordable broadband for Christmas. 

What's the trigger? Well the Shareholder/Government saying we need to make sure that Australian's consumers pay no more than $39.95 for a 20/20Mbps unlimited plan. Let's get rid of this asymmetrical crap at the lower end - you're only digitally taxing/extorting poorer people to upgrade to a decent service. 

$49.95 for a 50/25Mbps unlimited and that sorts 90% of consumers and 80% of small business and leave the rest from there. Run that pricing through the model and you will get a deficit in the DCF of the business and there's your justification for the writedown. 

It'll be somewhere near $20B. 

Don't do it and 5G will eat your lunch in 5 years and meanwhile Australians suffer the effects of the most expensive broadband in the G20, unless you're rich, then you can afford it.


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