[AusNOG] background radiation was: "i want a pony!" (wasRe:Longlive the NBN. The NBN is dead?! [personal])
mmc at internode.com.au
Thu Aug 12 23:49:13 EST 2010
On 12/08/2010, at 10:57 PM, Tim McCullagh wrote:
----- Original Message -----
From: Matthew Moyle-Croft<mailto:mmc at internode.com.au>
On 12/08/2010, at 2:30 PM, Tim McCullagh wrote:
To believe otherwise is foolish given that an adsl port provisioned costs $150 per port and a ftth port will cost $3500 to 7500.
Apples and oranges when one include the complete cost of a local loop and one doesn't, especially when part of the point is to fix the problem where people can only get very slow ADSL2 and/or none or live in areas with significantly degraded copper or RIMs ("etc") which are full.
This is business 101 stuff. The local copper loop is a sunk cost and in most cases has already been paid for and depreciated down on the books so the return does not need to paid for, as opposed to new borrowed money with a lender that demands his or her money back plus interest. I really can't believe that this is not understood
It's understood. The point is that your not getting a NEW local loop. So at some point you're going to have to start replacing it, I can guarantee it's not going to be cheaper in a decade or two from now. So, where do you go then? You've saved money now only to spend more later? It also doesn't solve the fact that "$150" doesn't buy you a fix in a RIM or for people at the end of loop too long. For that you need FTTN at a higher cost, higher Opex and you then have the same issues as NBN with a single entity controlling it.
So, good luck with the $150/port.
Again, you haven't answered my question regarding ensuring the regulatory certainty that would allow you to start building in two weeks.
I have a business to run and answering posts on this list come second.
I answered some of the issues on a previous email a few minutes ago. If I had the confidence in the regulatory environment then I could lodge some already completed land access notices and start building in 2 weeks. I have enough equipment in my maintenance stock to do so in that timeframe. The issue is why should I invest in projects when NBN co may over build it or worse still aquire access to it with out proper compensation. You probably need to have a look at some of conroys statements and legistalive threats as well as the behaviour of DBCDE in some areas. Conroy doesn't value private capital. In fact the Labor government has made many business value destroying decisions in such areas as communications, the insulation industry, mineral taxation on retrospective mining assets, the cash for clunkers and others. Australians haven't felt the ramifications yet, but they will. This is all non technical business 101 stuff. As it currently stands I am better off investing in other non comms assets. Business is business and it is all about risk and return. FTTH is a 10 year project, if you can't see the environment in 6 months then it makes it difficult to justify such investments.
So, you haven't answered the question.
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