<div dir="ltr"><div><div><div><div><div>Jake<br><br>The rational economic analysis of what you are saying is that it assumes that for high speed broadband to be offered "equitably" to everyone, people in the low cost areas must pay higher prices to cross subsidise the higher cost areas' prices. That is the current NBN model.<br>
<br></div>There's a few ways around that.<br><br></div>One is for people in the higher cost areas to pay more (subject to a price cap). That's how PSTN pricing is constructed now, it is capped at a ceiling, not a minimum.<br>
<br></div>Another is for the higher cost areas to be directly subsidised from government revenue: instead of indirectly taxing city folk through higher tariffs you directly fund rural broadband costs from consolidated revenue.  This is the approach now taken by TUSMA funding of the rural copper loop which would remain operative even under a FTTH NBN as it will be retained for the final 7%. What one does in this sense is expand TUSMA funding to cover broadband. The advantages of this is you aren't taxing broadband at the source (high city tariffs) but at the level of externalities (the general wealth created by broadband and everything else). Anyone who genuinely believes high speed broadband creates wealth should ideally support taxing at the externalities level not the broadband purchase level.<br>
<br></div>Another is for government to subsidise private investment in the higher cost areas, much like it is doing with the dollar for dollar co investment plan for rural mobile blackspots.<br><br></div>There are lots of ways to fund rural broadband which don't require a total monopoly derived cross subsidy.<br>
<div><div><br><br><br><br><div><br><br> <br></div></div></div></div><div class="gmail_extra"><br><br><div class="gmail_quote">On 17 September 2013 15:39, Jake Anderson <span dir="ltr"><<a href="mailto:yahoo@vapourforge.com" target="_blank">yahoo@vapourforge.com</a>></span> wrote:<br>
<blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
  
    
  
  <div text="#000000" bgcolor="#FFFFFF">
    <div>Because if you don't then private
      enterprise will build a bunch of little fiefdoms where it will be
      uneconomical for anybody else to try to take market share with
      diminishing returns, and as a bonus all those areas in "the bush"
      that the population as a whole is rather fond of won't get any
      services at all because its not "economic" to do so.<div><div class="h5"><br>
      <br>
      On 17/09/13 18:09, Paul Wallace wrote:<br>
    </div></div></div><div><div class="h5">
    <blockquote type="cite">
      
      <div>I can see it now ...</div>
      <div><br>
      </div>
      <div>Q: Minister Conroy, .. why build an NBN?</div>
      <div><br>
      </div>
      <div>A: If the government doesn't build it no one else will.</div>
      <div><br>
      </div>
      <div>Q: so .. er, why do you need legislation preventing
        competition?</div>
      <div><br>
      </div>
      <div>A: What are you .. a f$&:5$@/3$&!ing Turnbull
        supporter?!</div>
      <div><br>
      </div>
      <div>!!!</div>
      <div><br>
      </div>
      <div>!!!</div>
      <div><br>
        <br>
        <div><br>
        </div>
      </div>
      <div><br>
        On 17/09/2013, at 5:37 PM, "Grahame Lynch" <<a href="mailto:grahamelynch@commsdaymail.com" target="_blank">grahamelynch@commsdaymail.com</a>>
        wrote:<br>
        <br>
      </div>
      <blockquote type="cite">
        <div>
          
          <div dir="ltr">
            <div>
              <div>They actually talked about it Paul in their verbal
                commentary today and say they think they are covered but
                just in case they are prepared to provide open access or
                cap speeds at 24Mbps just in case.<br>
                <br>
              </div>
              Yes there are exemptions in the law but they are ambiguous
              and clearly the spirit of the legislation was to prevent
              an overbuild equating to 7-10% or so of the population.
              The point is they aren't completely 100% sure of where
              they stand - clearly expanding superfast broadband capable
              tails to half a million apartments could conversely be
              viewed as an "<b>extension, alteration or upgrade".<br>
                <br>
              </b></div>
            <b>Or put it another way; doubt they would have announced
              this if Conroy was still the minister....<br>
            </b>
            <div>
              <div><br>
                <br>
              </div>
            </div>
          </div>
          <div class="gmail_extra"><br>
            <br>
            <div class="gmail_quote">On 17 September 2013 14:28, Paul
              Brooks <span dir="ltr"><<a href="mailto:pbrooks-ausnog@layer10.com.au" target="_blank">pbrooks-ausnog@layer10.com.au</a>></span>
              wrote:<br>
              <blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
                <div text="#000000" bgcolor="#FFFFFF">
                  <div>
                    <div>On 17/09/2013 2:09 PM, Grahame Lynch wrote:<br>
                    </div>
                    <blockquote type="cite">
                      <div dir="ltr">
                        <div>This is what the legislation says:<br>
                          <br>
                          <i>A network unit that belongs to a
                            telecommunications network (other than the
                            national broadband network) must not be used
                            to supply a fixed-line carriage service if:
                          </i></div>
                      </div>
                    </blockquote>
                    <br>
                  </div>
                  However S141C:<br>
                  <blockquote type="cite"><b>Certain installations and
                      connections are not taken to be an extension,
                      alteration or upgrade</b>
                    <p>                   For the purposes of this Part,
                      if: </p>
                    <p>                     (a)  a <a href="http://www.austlii.edu.au/au/legis/cth/consol_act/ta1997214/s7.html#line" target="_blank">line</a> is or was installed for
                      the purposes of connecting particular premises to
                      a <a href="http://www.austlii.edu.au/au/legis/cth/consol_act/ta1997214/s7.html#telecommunications_network" target="_blank">telecommunications network</a>;
                      and </p>
                    <p>                     (b)  the installation of the
                      <a href="http://www.austlii.edu.au/au/legis/cth/consol_act/ta1997214/s7.html#line" target="_blank">line</a> enables or enabled the
                      occupier of the premises to become a customer in
                      relation to <a href="http://www.austlii.edu.au/au/legis/cth/consol_act/ta1997214/s7.html#carriage_service" target="_blank">carriage services</a> supplied
                      using the network; and </p>
                    <p>                     (c)  the premises are in
                      close proximity to a <a href="http://www.austlii.edu.au/au/legis/cth/consol_act/ta1997214/s7.html#line" target="_blank">line</a> that forms part of the
                      infrastructure of the network; and </p>
                    <p>                     (d)  the network is capable
                      of being used to supply a <a href="http://www.austlii.edu.au/au/legis/cth/consol_act/ta1997214/s142a.html#superfast_carriage_service" target="_blank">superfast carriage service</a>;
                      and </p>
                    <p>                     (e)  the network came into
                      existence before 1 January 2011; </p>
                    <p>neither the installation of the <a href="http://www.austlii.edu.au/au/legis/cth/consol_act/ta1997214/s7.html#line" target="_blank">line</a> mentioned in
                      paragraph (a), nor the connection of the premises,
                      is taken to be an extension, <a href="http://www.austlii.edu.au/au/legis/cth/consol_act/ta1997214/s142a.html#alter" target="_blank">alteration</a> or <a href="http://www.austlii.edu.au/au/legis/cth/consol_act/ta1997214/s142a.html#upgrade" target="_blank">upgrade</a> of the network. </p>

                  </blockquote>
                  So if the main  fibre trunk cable was already passing
                  the building prior to 1 January 2011, they could
                  extend it into the basement and claim it was already
                  "in close proximity" to the building, so is not an
                  extension, alteration or upgrade - so isn't required
                  to provide a L2 bitstream service.<br>
                  <br>
                  Similarly S141B allows new network extensions of less
                  than 1 kilometre to be allowed, provided the network
                  being extended existed prior to 1 Jan 2011.<br>
                  <br>
                  Somehow, I suspect they've covered these things off
                  before making the announcement.<span><font color="#888888"><br>
                      <br>
                      P.<br>
                      <br>
                    </font></span></div>
              </blockquote>
            </div>
            <br>
          </div>
        </div>
      </blockquote>
      <blockquote type="cite">
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        </div>
      </blockquote>
      <br>
      <fieldset></fieldset>
      <br>
      <pre>_______________________________________________
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    </blockquote>
    <br>
  </div></div></div>

</blockquote></div><br></div>