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.
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.”
...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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