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<p class="MsoNormal"><b><span lang="EN-US" style="font-size:10.0pt; font-family:"Tahoma","sans-serif"">From:</span></b><span lang="EN-US" style="font-size:10.0pt; font-family:"Tahoma","sans-serif""> Matthew Moyle-Croft [mailto:mmc@internode.com.au]
<br>
<b>Sent:</b> Wednesday, 23 February 2011 2:13 PM<br>
<b>To:</b> Bevan Slattery<br>
<b>Cc:</b> Damien Morris; ausnog@ausnog.net<br>
<b>Subject:</b> Re: [AusNOG] "Sewer broadband provider dumped" - Brisbane fibre plan scrapped</span></p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">A few comments: </p>
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<p class="MsoNormal">- Cost to access a customer is either $17/month for ULL or it's ~$30ish as you need LSS and wholesale line rental.</p>
<p class="MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri","sans-serif"; color:#1F497D"> </span></p>
<p class="MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri","sans-serif"; color:#1F497D">Cost is $6.50 for Band 1 or $16.00 for band 2. Even if I took your price of $17 you are looking at a rate of $25 for copper limited bandwidth from home to
PoP. Under a 1TB of data transferred (excluding IP) this would equate to $25-v-$85 (or worse case including a $10/Mbps backhaul charge $115)</span></p>
<p class="MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri","sans-serif"; color:#1F497D"> </span></p>
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<p class="MsoNormal">- DF is only available to a subset of the exchanges of people covered by the NBN. So, you then need to start averaging the wholesale costs for the areas NOT covered.</p>
<p class="MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri","sans-serif"; color:#1F497D"> </span></p>
<p class="MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri","sans-serif"; color:#1F497D">Firstly, I said that was to the majority of metro exchanges which is entirely accurate. Secondly the “subset” of metro is a majority or metro. By some research
I did at PIPE 2 years ago we had DF to exchanges that covered over 6 million people. From recollection a further 50 (large) exchanges have been installed since then. Add to that that AMCOM, ESTA etc. in WA and SA I would expect DF to be available to almost
8 million people. If you read the AGM presentations by companies like iiNet and TPG you will note their “on-net” customer base is higher than their “off-net”. The vast majority of these are fed by dark fibre.</span></p>
<p class="MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri","sans-serif"; color:#1F497D"> </span></p>
<p class="MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri","sans-serif"; color:#1F497D">You are worried about a tinkering of a $5/month delta on ULL (which I am happy to take an average approach including some Band 3 regionals) but don’t have
an issue with the extra $60/month for NBN? Huh?</span></p>
<p class="MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri","sans-serif"; color:#1F497D"> </span></p>
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<p class="MsoNormal">So, it's easy to create a bit of strawman about what the best-case is for this, but this doesn't represent the average cost.
<span style="color:#1F497D"></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri","sans-serif"; color:#1F497D"> </span></p>
<p class="MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri","sans-serif"; color:#1F497D">No strawman, just stating economic fact. Pushing out a NBN press release with a view to keeping the “headline” wholesale price down to $25/user based upon
a user contention ratio of 1:250 on a 12Mb/s (average 48Kbps over a month) service is just amazing. That’s the same bandwidth as getting unlimited dial-up. Why didn’t they have a table showing costs under a variety of plans?</span></p>
<p class="MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri","sans-serif"; color:#1F497D"> </span></p>
<p class="MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri","sans-serif"; color:#1F497D">The silence on the NBN pricing is deafening. Here’s a little bit of irony. International bandwidth pricing without competition was around $300/Mbps 3 years
ago. With competition it’s now $35/Mbps. Within the next 12 months it will be cheaper to get bandwidth from Iraq (Internet) to Sydney than from a the house next door to the PoI to the PoI. Sorry – that’s a bit extreme (but true). I should have said in
12 months it will be cheaper to get bandwidth (transit) from anywhere in the world to Sydney, than from anywhere in the PoI to the PoI.</span></p>
<p class="MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri","sans-serif"; color:#1F497D"> </span></p>
<p class="MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri","sans-serif"; color:#1F497D">Who’s clutching at straws?
</span></p>
<p class="MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri","sans-serif"; color:#1F497D"> </span></p>
<p class="MsoNormal"><span style="font-size:11.0pt; font-family:"Calibri","sans-serif"; color:#1F497D">[b]</span></p>
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