<html><head><meta http-equiv="Content-Type" content="text/html charset=utf-8"></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space;" class="">Bevan,<div class="">Don’t disagree - this was purely a very narrow suggestion to over come one particular current limitation of what’s there. </div><div class=""><br class=""></div><div class="">(121 POIs on the NBN, 121 POIs, if one of those POIs should accidentally run out of CVC, then there would still be 121 bloody POIs on the NBN … you know the song).</div><div class=""><br class=""></div><div class="">MMC</div><div class=""><br class=""><div class=""><div><blockquote type="cite" class=""><div class="">On 30 Jul 2017, at 4:25 pm, Bevan Slattery <<a href="mailto:bevan@slattery.net.au" class="">bevan@slattery.net.au</a>> wrote:</div><br class="Apple-interchange-newline"><div class=""><div dir="ltr" class=""><div class="">***PERSONAL POST***<br class=""><br class="">NBN Fast 5 facts</div><div class=""><br class=""></div><div class="">1. The NBN can be any two of the following.</div><div class=""><br class=""></div><div class="">- FAST</div><div class="">- AFFORDABLE</div><div class="">- HAVE THE MIRAGE OF GENERATING A COMMERCIAL RETURN</div><div class=""><br class=""></div><div class="">The Government is sticking to the "mirage" while RSP's are trying to make it affordable. Therefore "fast" it ain't.</div><div class=""><br class=""></div><div class="">2. The potential penalty for providing affordable broadband to just 5 different users in competition with the NBN is more than importing either 2kg of Cocaine, 1.5kg of Heroin or 750kg of Meth into the country. Yes - let that sink in for a minute.</div><div class=""><br class=""></div><div class="">3. The ACCC are ultimately responsible for this mess. The ACCC were supposed to look after the consumer, but in their rush to appease (initially Labor) political masters they abandoned almost 20 years of infrastructure based competition philosophy, approved the Special Access Undertaking, approved the sale of both Telstra and Optus' HFC network to NBN Co, changed the 14 PoI's to 121 (instead of making both optional) and approved the creation of a new monopoly in what was a vibrant, competitive market. Never in a developed economy can I recall such massive Government intervention blessed by an equally committed regular to destroy last mile competition in the telecommunications industry. Rod Sims call "to sort this mess out" and threatening RSP's "to lawyer up" shows how the ACCC is not prepared to accept their culpability in failing all Australian's. I'm sorry. ACCC this mess is yours and threatening RSP's to try to eek out a usable network experience and put lipstick on the pricing model "pig" you approved is breathtaking. The ACCC has shown how out of depth they are here and Rod Sims should accept his organisations failure to protect the consumer and resign. It's time for a reshuffle at the ACCC who have demonstrated they are woefully inept and incapable of being independent.</div><div class=""><br class=""></div><div class="">4. It's all academic if the Government doesn't find a way to bring $30B on budget by the end of the year. Government will become unelectable (my prediction earlier this year) and the NBN will not achieve critical mass (my prediction last year). The growing frustration of users churning from ADSL/HFC realise that their NBN connection is more expensive and slower during peak times (my prediction in 2015). TPG will launch a $30 all you can eat home 5G wifi base (similar to Telstra Nighthawk) that will start a 5G war with Optus, Vodafone and Telstra. This will lead to a massive investment in 5G base stations/backhaul and will take away the bottom 20% of all NBN users - as well as the mobile/young/renters within first 24 months.</div><div class=""><br class=""></div><div class="">5. Having 1,000,000 screens on the NBN concurrently using Netflix UHD will cost $300m per month for CVC alone. 95th percentile won't work and bit type charging is better won't solve the problem. The problem is the commercial return and keeping this investment 100% on balance sheet because at the end of the day the Government is forcing the people at NBN Co. to try to do the impossible - which is get massive market saturation (take up) of an expensive and inferior product (due to high cost). NBN Co. is fighting the good fight, but with both hands tied behind their backs. They need the write down to make this network sing.</div><div class=""><br class=""></div><div class="">Cheers</div><div class=""><br class=""></div><div class="">[b]</div><div class=""><br class=""></div><div class=""><br class=""></div><div class="">Some background reading:<br class=""><br class="">Slattery calls "bullshit" on NBN Economics (2010 and sadly my predictions are all pretty much bang on)</div><div class=""><a href="http://www.zdnet.com/article/slattery-calls-bullshit-on-nbn-economics/" class="">http://www.zdnet.com/article/slattery-calls-bullshit-on-nbn-economics/</a><br class=""></div><div class=""><br class=""></div><div class=""><div class="">2015 Commsday Presentation - Why the CVC is Evil & NBN will halve TPG, Telstra and Optus residential profit margins</div><div class=""><a href="https://www.slideshare.net/CommsDay/cd-summit-2015-superloops-bevan-slattery?next_slideshow=1" class="">https://www.slideshare.net/CommsDay/cd-summit-2015-superloops-bevan-slattery?next_slideshow=1</a></div></div><div class=""><br class=""></div><div class=""><br class=""></div><div class="">2016 Commsday Prediction of 5G destroying current NBN Economics</div><div class=""><a href="https://www.slideshare.net/CommsDay/commsday-summit-2016-superloops-bevan-slattery" class="">https://www.slideshare.net/CommsDay/commsday-summit-2016-superloops-bevan-slattery</a><br class=""></div><div class=""><br class=""></div><div class=""><br class=""></div><div class="">2017 Commsday Presentation - Prediction Recap and ACCC is ultimately to blame - Let's help NBN Co. get what they need.</div><div class=""><a href="https://www.slideshare.net/CommsDay/commsday-summit-2017-superloops-bevan-slattery" class="">https://www.slideshare.net/CommsDay/commsday-summit-2017-superloops-bevan-slattery</a><br class=""></div><div class=""><br class=""></div><div class=""><p class="MsoNormal"><span lang="EN-AU" style="font-size:16pt;font-family:Arial,sans-serif" class=""><br class=""></span></p><p class="MsoNormal"><span lang="EN-AU" style="font-family:Arial,sans-serif" class="">2016 - Commsday Letter</span></p><p class="MsoNormal"><span lang="EN-AU" style="font-size:16pt;font-family:Arial,sans-serif" class="">Rod
Simms – It’s time for you to go<span class=""></span></span></p><div class=""><span lang="EN-AU" style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">Sorry I¹ve watched this from afar for too long and
have really had enough. It’s time to
speak up.<span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">The ACCC has absolutely zero understanding as to the
catastrophic effect of their decisions/endorsements of the NBN and the “ghosts
of Christmas past” are now starting to come back to haunt them. But
instead of acknowledging their failure, they are trying to point that it is
Government¹s fault or that the ISP’s are not being transparent about shaping
traffic. I’m sorry Rod and Co. but you are the ACCC and your
absolute fundamental role is to protect consumers. The ACCC had
absolute power to stop, alter, fix the SAU, block the sale of fixed line
infrastructure and even force price reductions in access charges.<span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">Rod Simms Chairman of the ACCC for the past five years,
only this week said that<span class=""></span></span></p><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">“privatisations are severely damaging the
economy"<span class=""></span></span></p><p class="MsoNormal"><span lang="EN-AU" class=""><a href="https://www.theguardian.com/australia-news/2016/jul/27/acccs-rod-sims-says-privatisations-severely-damaging-economy" class=""><span lang="EN-US" style="font-size:11pt;font-family:Arial,sans-serif" class="">https://www.theguardian.com/australia-news/2016/jul/27/acccs-rod-sims-says-privatisations-severely-damaging-economy</span></a></span><u class=""><span style="font-size:11pt;font-family:Arial,sans-serif;color:rgb(0,0,233)" class=""><span class=""></span></span></u></p><p class="MsoNormal"><u class=""><span style="font-size:11pt;font-family:Arial,sans-serif;color:rgb(0,0,233)" class=""><span class=""><span style="text-decoration-line:none" class=""> </span></span></span></u></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><i class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class="">"He
says governments have created private monopolies without sufficient<span class=""></span></span></i></p><p class="MsoNormal"><i class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class="">regulation
to stop those monopolies overcharging users and the public<span class=""></span></span></i></p><p class="MsoNormal"><i class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class="">knows
it and has a right to be angry.”<span class=""></span></span></i></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">2014 the same Rod Simms “argues the benefits of
privatisation"<span class=""></span></span></p><p class="MsoNormal"><span lang="EN-AU" class=""><a href="http://www.abc.net.au/news/2014-01-06/accc-chairman-sims-floats-privatisation-of-power-post/5185970" class=""><span lang="EN-US" style="font-size:11pt;font-family:Arial,sans-serif" class="">http://www.abc.net.au/news/2014-01-06/accc-chairman-sims-floats-privatisation-of-power-post/5185970</span></a></span><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><i class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class="">"The
Australian Competition and Consumer Commission chairman Rod Sims says the root
and branch review of competition policy by the Federal Government should be as
broad as possible, as privatisation and more competitive markets offer the best
possibility of productivity improvements. Mr Sims says, for a start, state
governments should privatise energy companies, a move he believes will bring
down electricity prices.<span class=""></span></span></i></p><p class="MsoNormal"><i class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span></i></p><p class="MsoNormal"><i class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class="">"When
the private sector owns assets that does provide better incentives<span class=""></span></span></i></p><p class="MsoNormal"><i class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class="">for
better performance," he told ABC's News Radio."<span class=""></span></span></i></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">As for the NBN the single largest monopoly currently
operating in Australia - well it was completely created and reviewed under the
ACCC¹s watch. In fact the ACCC green lighted every single piece of
price-fixing, monopoly creating, competition destroying piece of the puzzle,
selling out almost 20 years infrastructure based competition to ensure that by
2020 Australian consumers will HAVE THE MOST EXPENSIVE BROADBAND SERVICE IN THE
DEVELOPED WORLD.<span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">Think this is an exaggeration? Ok. Let¹s
do the dance:<span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">1. ACCC created the PoI mess themselves<span class=""></span></span></p><p class="MsoNormal"><span lang="EN-AU" class=""><a href="https://www.accc.gov.au/media-release/the-accc-publishes-the-list-of-points-of-interconnection-to-the-national-broadband-network" class=""><span lang="EN-US" style="font-size:11pt;font-family:Arial,sans-serif" class="">https://www.accc.gov.au/media-release/the-accc-publishes-the-list-of-points-of-interconnection-to-the-national-broadband-network</span></a></span><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="gmail-MsoListParagraphCxSpFirst"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">ACCC
decides to overturn the NBN’s proposed 14 PoI’s and establish 121 PoI¹s<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpMiddle"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">Could
have offered both with reduced CVC to collect from local FAN/PoI for
significantly reduced CVC rate<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpMiddle"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">Decided
to push out to 121 only with no aggregation regardless of whether the PoI had
competitive backhaul or not.<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpMiddle"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">Did
not seek to reduce the CVC rate to reflect there being no backhaul back to
aggregated state based NBN PoI’s under the NBN proposal (Yes $20/Mbps still for
the CVC)<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpLast"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">reduced
competition as only ISP’s with enough subscribers to each PoI can justify
access (read Simon Hackett’s excellent presentations on this)<span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">2. ACCC approves Access and CVC costs<span class=""></span></span></p><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><a href="https://www.accc.gov.au/system/files/ACCC%20Final%20Decision%20on%20the%20Special%20Access%20Undertaking%20lodged%20by%20NBN%20Co%20on%2019%20November%202013.pdf" class="">https://www.accc.gov.au/system/files/ACCC%20Final%20Decision%20on%20the%20Special%20Access%20Undertaking%20lodged%20by%20NBN%20Co%20on%2019%20November%202013.pdf</a><span class=""></span></span></p><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">ACCC explicitly approved the entire mess including the
two main costs<span class=""></span></span></p><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">Access and CVC<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpFirst"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">ACCC
approved $20mbps CVC charge;<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpLast"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">Approved
and endorsed the asymmetric product portfolio and pricing regime which are
aligned to 2002 access technologies (ADSL)</span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">3. ACCC was instrumental in dismantling any
competition to the NBN<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpFirst"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">2012
ACCC approved the entire sale of Telstra¹s Copper and HFC network<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpMiddle"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">to
NBN Co. for $11B reducing competition<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpMiddle"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">2012/2015
ACCC the entire sale of Optus’ HFC network to NBN Co. for<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpMiddle"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">$800m
reducing competition<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpMiddle"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">ACCC
therefore approved the ultimate removal of every existing ADSL/VDSL and HFC
competitor from main capital cities (sorry Canberra)<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpMiddle"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">ACCC
therefore approved the removal of almost any competitive tension<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpMiddle"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">for
the NBN to change its completely flawed pricing model<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpMiddle"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">ACCC
declared new rates for Superfast Broadband services this week.<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpMiddle"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">$27.50
access and $17.50/mbps for CVC charges.
So to get a 1000Mbps guaranteed service to a school would now cost more
than $200,000/annum just in access/CVC charges.<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpLast"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span></p><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">So now we have an ACCC that is asking providers to
become “more transparent” as to how fast their broadband service is and how
much they are throttling the service. Really? Are the
ACCC that ridiculously out of touch and inept? Well obviously - yes.<span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">So to help the ACCC I¹m going to help you with this.<span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">* All your customers have $60/month for a broadband
service<span class=""></span></span></p><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">* That¹s just over $54 EX gst (and a credit card
charge)<span class=""></span></span></p><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">* NBN Co charge $27 for a 25/5 tail<span class=""></span></span></p><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">* that leaves ISP¹s with $27 to pay for:<span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="gmail-MsoListParagraphCxSpFirst"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">CVC<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpMiddle"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">backhaul
+ NBN PoI interconnection/colo<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpMiddle"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">national
backhaul and international capacity<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpMiddle"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">tech
support<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpMiddle"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">company
overheads/costs/compliance<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpLast"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">profit<span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">So assume the provider wants to make 10% profit on the
service meaning $5.40 that leaves $21.60 for<span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="gmail-MsoListParagraphCxSpFirst"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">CVC<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpMiddle"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">backhaul
+ NBN PoI interconnection/colo<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpMiddle"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">national
backhaul and international capacity<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpMiddle"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">tech
support<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpLast"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">company
overheads/costs/compliance<span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">So assume tech support is $5/sub/month and company
overheads of $3/sub/month on average then that leaves $13.60/month for:<span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="gmail-MsoListParagraphCxSpFirst"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">CVC<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpMiddle"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">backhaul
+ NBN PoI interconnection/colo<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpLast"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">-<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">national
backhaul and international capacity<span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">Assume national backhaul and international capacity is
$5/mbps (assuming quite a lot of peering) and $1/mbps average for NBN PoI
backhaul along with a CVC charge of is $17.50 then the average bandwidth cost
per mbps delivered is $23.50 (majority CVC)<span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">So what you are left with is $13.60 worth of
bandwidth/backhaul with an average cost of $23.50/Mbps. $13.60/month divided by
$23.50/mbps/month = ~0.587Mbps average consumption or 170GB/month<span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">THIS IS THE REALITY OF THE ACCC¹s DECISION. EVERY WAY
YOU CUT IT THE BEST AVERAGE DOWNLOAD SPEED ACROSS THE GROUP FOR A $60 USER ON
THE NBN IS</span><span style="font-size:11pt;font-family:"Libian SC Regular"" class=""> </span><b class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class="">0.580Mbps or 180GB per month</span></b><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">There is only three strategies a user can get more
than this:<span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="gmail-MsoListParagraphCxSpFirst"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">1.<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">Pay
more. If you paid ten dollars extra ($70/month) you can get an extra
average consumption of 0.38Mbps/month<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpMiddle"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">2.<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">Hope. They
need to hope/rely on users using less and there being no peaks (which is what
traffic shaping is designed to help reduce)<span class=""></span></span></p><p class="gmail-MsoListParagraphCxSpLast"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">3.<span style="font-variant-numeric:normal;font-stretch:normal;font-size:7pt;line-height:normal;font-family:"Times New Roman"" class=""> </span></span><span style="font-size:11pt;font-family:Arial,sans-serif" class="">Competition. They
can access an alternate provider with a better offering. Like a HFC
provider or another VDSL provider for them to access or to force the NBN to
change their pricing<span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">Oh wait. That¹s right the ACCC approved the
removal of all those competitors. So yeah. Pay more or
hope. Good luck with that.<span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">Time for the ACCC to accept its’ culpability and
negligence in approving the worst example of anti-competitive, price fixed,
monopoly infrastructure which in the next five years will deliver the
Australian public the most expensive broadband in the developed world. The manner in which the ACCC then has the
audacity to ask ISP’s to be more transparent in their disclosure around
bandwidth management shows the complete dislocation of the ACCC’s grip on the
fundamental realities of the anti-competitive Frankenstein they have endorsed
and approved.<span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">This would be my disclosure if I were a retail ISP:<br class="">
<br class="">
“Because of the ACCC approving the NBN Special Access Undertaking and reducing
your competitive options, the ACCC has endorsed the NBN monopoly rents on your
service. As a result your $60 broadband
plan will not support a guaranteed single standard definition Netflix stream so
we have had to deploy traffic shaping technology across the network so we can
delay non-time sensitive/bandwidth insensitive traffic and reduce the quality
of the Netflix stream to the point that it can now work during peak times and
while you start to notice degradation, at the moment we can avoid you seeing hieroglyphics.
If the CVC fee was between $2-$5/mbps this would be less of an issue, but the
ACCC believed it reasonable that the cost to stream data from a house next door
to the NBN PoI 50 metres to the NBN PoI should be twice to three times as
expensive as connecting the NBN PoI to stream data from a website hosted 20,000km
on the other side of the planet.”<span class=""></span></span></p><div class=""><span style="font-size:11pt;font-family:Arial,sans-serif" class=""><span class=""> </span></span><br class="webkit-block-placeholder"></div><p class="MsoNormal"><span style="font-size:11pt;font-family:Arial,sans-serif" class="">Rod as Chairman of the ACCC needs to accept
responsibility of the mess his organization has left for every Australian
broadband consumer to endure for a generation.
Every way you look at this; Rod Simms - It’s time for you to go.<span class=""></span></span></p>
</div></div><div class="gmail_extra"><br class=""><div class="gmail_quote">On 30 July 2017 at 11:00, Matthew Moyle-Croft <span dir="ltr" class=""><<a href="mailto:mmc@mmc.com.au" target="_blank" class="">mmc@mmc.com.au</a>></span> wrote:<br class=""><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">Hi,<br class="">
I’m going to side step that entirely - I think it’s always interesting to look at other models, but at the moment we’ve got what we’ve got.<br class="">
<br class="">
I did have some interesting responses - I think it’s pretty clear though that a p95 product for CVC would be popular and unlock a lot of options for ISPs. It may mean a bit of a drop of revenue for NBN but not too much, but it’d definitely overcome a lot of the issues with congestion where ISPs can’t always keep up and/or predict some spikes.<br class="">
<span class="HOEnZb"><font color="#888888" class=""><br class="">
MMC<br class="">
</font></span><div class="HOEnZb"><div class="h5"><br class="">
> On 29 Jul 2017, at 4:19 pm, Mark Delany <<a href="mailto:g2x@juliet.emu.st" class="">g2x@juliet.emu.st</a>> wrote:<br class="">
><br class="">
>> Is buying the CVC in fixed amounts the right model?<br class="">
><br class="">
> I've always wonder why it's been a speed-based system. It strikes me<br class="">
> that speed has always been a poor proxy for resources consumed and now<br class="">
> that model is just getting in the way.<br class="">
><br class="">
> Would it be better and simpler to set the local-loop (LL) line speed<br class="">
> to the maximum the tech allows and charge on bits delivered to/from<br class="">
> POI to LL along with a flat rate for LL upkeep?<br class="">
><br class="">
> Just like other utilities such as electricity and water.<br class="">
><br class="">
> It's been shown that most people don't generally consume unlimited<br class="">
> amounts of data - they consume what they need. And, now that people<br class="">
> are well and truly comfortable with quotas on their service, moving to<br class="">
> a true resources-based system is hardly much of a mindset change like<br class="">
> it once might have been.<br class="">
><br class="">
><br class="">
> The advantages of this approach are:<br class="">
><br class="">
> a) RSP scaling costs match revenue much better than a menagerie of speed<br class="">
> proxies<br class="">
><br class="">
> b) Consumers aren't penalized with slow speeds just because they are<br class="">
> light users<br class="">
><br class="">
> c) All consumers get the best speed experience possible and are thus<br class="">
> likely to grow their usage which means quicker revenue growth<br class="">
><br class="">
> d) No "chilling effect" on the development of high speed applications<br class="">
><br class="">
> e) RSPs have no incentive to throttle consumers<br class="">
><br class="">
> f) It makes pricing transparent to the consumer<br class="">
><br class="">
> g) It takes NBNCo out of the performance discussion<br class="">
><br class="">
> h) It lets NBNCo focus on continuously improving the LL<br class="">
><br class="">
><br class="">
> All that needs to be done is:<br class="">
><br class="">
> a) Replace CVC with a quota/resource system to maintain an appropriate<br class="">
> ROI on POIs. Basically $X per MB delivered.<br class="">
><br class="">
> b) Replace AVC with a fixed LL upkeep/ROI fee<br class="">
><br class="">
><br class="">
> The main down-side is that given the MTM - it will expose the lower<br class="">
> speed services for what they are: vastly inferior to the higher speed<br class="">
> services. That might not be politically palatable under the current<br class="">
> regime.<br class="">
><br class="">
> It will also more directly expose RSPs who under-provision rather than<br class="">
> what we have today which is to smear the blame between NBNCo and<br class="">
> RSPs. But that's a good thing, right?<br class="">
><br class="">
> Of course the resources-consumed pricing could still be set absurdly<br class="">
> high to suit the politics of making the NBN "profitable" for a future<br class="">
> sale but that is obscured now with the complex pricing. It will be<br class="">
> much more transparent with a simpler resources system. Also a good<br class="">
> thing.<br class="">
><br class="">
><br class="">
> Mark.<br class="">
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