[AusNOG] "Sewer broadband provider dumped" - Brisbane fibre plan scrapped

[Bevan Slattery]

> As opposed to paying Private Vendor X's backhaul costs instead of NBNco's AGVC?

Sorry Damien - but I think you completely misunderstand the economics of the situation.

Here's Tail Access 101:

ISP has DSLAM in Metro Exchange with say 500 subscribers
Copper                                                  $12/month Average (access to full access speed of copper upto 24Mb/s at no cost)
Port Cost (including TEBA charge)                       $4 - $6/month (full access speed of ADSL2+ or SHDSL)
Backhaul cost (Dark Fibre @ 2k per exchange)            $4/sub/month (unlimited bandwidth as DF can support 10,000Mb/s standard and higher)

Cost to provide unlimited ADSL2+ access all the way from the ISP PoP in the City to the house is ~$20/month + add IP costs on top of that.
So for $20/month with some critical mass you can deliver unlimited apps, bandwidth from the PoP to house.  So if I were to use 1TB of data in a month (assuming perfect average/non-peaking utilisation of around 3Mb/s average) then the cost would be internet transit cost + $20/month.


NBN Model - Assume Metro PoI

Port cost                                               $24/month/tail.  Vanilla 10/1Mb/s
Backhaul (Customer to PoI)                              $20/month/Mbps/month
Backhaul (PoI to PoP)                                   $10/Mbps/month (don't know if DF will be available)

So for the same 1TB useage cost = $24/month for the tail + $60/month for the Customer to PoI bandwidth and $30/month for the PoI to PoP backhaul cost making it $114/month + internet bandwidth costs.

$20/month versus $114/month.  Happy for anyone to find any major flaws in my calculations.

> I hate to use the term 'scaremongering', but..

It's funny how people who probably have the best insight and are alarmed are scaremongering...

> If either option was chosen then there would be cries and accusations of anti-competitive practices. Do you see a way clear with a public/private split that could avoid the industry "screwed hard into a monopoly submission"..?

My point is why is it a choice?  Why does the Government need to pay Telstra $18B to rip all the copper out of the ground *and* introduce a bill solely designed to economically stop existing fibre carriers from expanding or upgrading their networks?  Can't we have both?  Didn't the Implementation Study this can be done without Telstra and with the copper still in the ground and provide a commercial return?

Cheers

[b]




From: ausnog-bounces at lists.ausnog.net [mailto:ausnog-bounces at lists.ausnog.net] On Behalf Of Damien Morris
Sent: Wednesday, 23 February 2011 12:03 PM
To: ausnog at ausnog.net
Subject: Re: [AusNOG] "Sewer broadband provider dumped" - Brisbane fibre plan scrapped

On 23/02/11 12:33 PM, "Bevan Slattery" <Bevan.Slattery at nextdc.com> wrote:

Even predicted 4G/LTE which NBN was incapable of delivering guaranteed 12Mb/s.  Which by the way they are no longer providing.  It's now "up to" 12Mb/s without portability.  That does sound appealing!

Sadly, I was wrong about the NBN legislation getting through without a business case.  Regrettably this, and the associated "Cherry Picker" [read anti-competitive] bill will ensure the industry is screwed so hard into a monopoly submission with ridiculous bit-taxed (AGVC type fees) that the NBN is now economically and structurally worse than what we have now (in metro areas at least).  Sure it's technically superior and the Lemmings love it, right up to the point they (then the tax payer) will have to pay for it.


As opposed to paying Private Vendor X's backhaul costs instead of NBNco's AGVC? I hate to use the term 'scaremongering', but..

If either option was chosen then there would be cries and accusations of anti-competitive practices. Do you see a way clear with a public/private split that could avoid the industry "screwed hard into a monopoly submission"..?

Thanks,
Damien.
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