[AusNOG] ISP pricing in the NBN world

Rod Veith rod at rb.net.au
Mon Apr 16 17:21:25 EST 2012

Sorry - we got too far off topic so new subject line.

Not a just analogy. 

Do Australia Post charge the same for the same 1 cubic metre parcel to a
neighbouring suburb versus the other side of the world? Will the charge for
the  1 cubic metre parcel that weighs 1 kilogram be the same as a 1 cubic
metre parcel weighing 100 kilograms? 

As an ISP, I don't care if you send a resume or a photo of your kid. I do
care about existing business models and how I can continue to make money. As
costs come down, competitive pressures will undoubtedly lower the price
people pay for services but there always needs to be an adequate margin or
the business goes down. Of course you can delay paying staff, not pay
superannuation, avoid tax and follow other various dubious methods to try
and outlast the competition. Do you really want a race to the bottom? If so,
you'll win because I have no intention of following.

There is nothing stopping you offering free voice calls in the NBN world -
go for it if you must. Just remember that businesses want a reliable
telephone service and they want someone to talk to if something doesn't
work. Your billing system will be simple however you still need to route
their incoming calls to the correct location and send outgoing calls to any
telephone number in the world. You also need security to stop unauthorised
use of your services and stop scammers/spammers etc. If you can do all that
at an enterprise scale with no extra costs let me know and I'll sign up to
your service. 


-----Original Message-----
From: ausnog-bounces at lists.ausnog.net
[mailto:ausnog-bounces at lists.ausnog.net] On Behalf Of Mark Delany
Sent: Monday, 16 April 2012 4:29 PM
To: ausnog at lists.ausnog.net
Subject: Re: [AusNOG] M2 buy Primus

On 16Apr12, Rod Veith allegedly wrote:

> Why should a phone call and a viewing of a youtube video have the same 
> intrinsic value

Because the intrinsic value of the bits is none of my ISPs business. Just as
the intrinsic value of a letter delivered by Auspost is none of their

If you want to argue that voice bits should be charged at a premium then you
should also argue that Auspost should analyze the content of my letters and
charge me on their perceived value of the contents.

For a job-offer letter, Auspost might charge me $100 to deliver, for a
marketing letter they might charge me $0.01. Is that what you mean by
charging for intrinsic value?

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