<html>
<head>
<meta content="text/html; charset=windows-1252"
http-equiv="Content-Type">
</head>
<body bgcolor="#FFFFFF" text="#000000">
<div class="moz-cite-prefix">On 16/09/2015 8:19 PM, Mark Smith
wrote:<br>
</div>
<blockquote
cite="mid:CAO42Z2wWLi4VJ6xi_fNr0H6AVU=_f3uKAZEByVGNj-5GD2AevQ@mail.gmail.com"
type="cite">
<p dir="ltr"><br>
On 16 Sep 2015 7:20 pm, <<a moz-do-not-send="true"
href="mailto:ausftth@mail.com">ausftth@mail.com</a>> wrote:<br>
><br>
> Not content with their monopoly position and the mess they
made so far, the NBNco now wants to compete for POI backhaul
with it's own customers too.<br>
><br>
> "In a speech to the National Press Club today, Morrow said
around 40 of the NBN's national 121 points of interconnect (PoI)
are currently too expensive for smaller ISPs to reach.<br>
><br>
> Morrow has accepted the NBN could have to play a role in
forcing the hand of the market, or stepping up if it turns out
no one else is willing to go to some locations."<br>
><br>
> Now, I'm all for lower backhaul costs, but surely there
would have been better ways to go about this than this sudden
change of heart.</p>
<p dir="ltr">If the private wholesalers can't connect to POIs and
make a commercial return, because the NBN has caused unrealistic
bandwidth expectations for the price paid, there is no other
choice but for the government proxy to step in and to subsidise
the POI bandwidth costs.</p>
</blockquote>
<br>
So the POIs were sited at locations with at least two competing
fibre backhaul providers already.<br>
The fibre is already there - there is no further build cost for
backhaul.<br>
The ACCC has just adjusted lower the maximum price that any provider
can charge for backhaul - I'm sure its still above street pricing,
but there's got to be room for a commercial deal.<br>
<br>
Where are the 40 locations where the two/three existing fibre
backhaul networks can't be bothered to compete for your traffic?<br>
<br>
If I was a shareholder of one of those wholesale networks, I'd be
pretty annoyed that management had expended the CAPEX to build the
link, and wasn't bothered trying to get some revenue and traffic to
boost the utilisation of the link to pay off the investment.<br>
<br>
Or are ISPs not bothering to exercise their buying power- provide me
a good deal to reach that far off POI on your network, or I'm taking
all my other business from the other juicy POIs to your competitor?<br>
<br>
<br>
<br>
</body>
</html>