[AusNOG] NBN Co Layer 2 vs. Layer 3 Services

[Mark Smith]

On Thu, 22 Apr 2010 17:49:22 +1000
Paul Brooks <pbrooks-ausnog at layer10.com.au> wrote:

> On 22/04/2010 5:39 PM, Matthew Moyle-Croft wrote:
> >
> > These people think that NBN should solve a different problem set which is relevant to them.   However, they miss the point that they're not the NBN customer, the RSPs are.  The RSPs want inputs which allow them to develop services that work.
> >    
> (wince) hope ACCAN doesn't see this - you'll be on the hit-list too.
> 

We'll, if ACCAN want a monopoly provider, with say, $43B in the bank to
build out a network that'll likely destroy the reason for any other
ISPs to exist, then that's what they might get.

I see NBNco's role is to replace the wires in the ground with a modern
equivalent, but no more than that. If they get into the layer 3
business, then they are in a better financial position than any other
ISP in Australia, because they don't have the large opex costs for a
large legacy network like Telstra do, and have far more capital
available to them than any other ISP. The temptation to destroy every
other competitor, with that sort of arsenal, even if those competitors
are also customers, would be extreme.

As they say, you should be careful what you wish for.

Regards,
Mark.