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

[Bevan Slattery]

From: Matthew Moyle-Croft [mailto:mmc at internode.com.au]
Sent: Wednesday, 23 February 2011 2:13 PM
To: Bevan Slattery
Cc: Damien Morris; ausnog at ausnog.net
Subject: Re: [AusNOG] "Sewer broadband provider dumped" - Brisbane fibre plan scrapped

A few comments:

- Cost to access a customer is either $17/month for ULL or it's ~$30ish as you need LSS and wholesale line rental.

Cost is $6.50 for Band 1 or $16.00 for band 2.  Even if I took your price of $17 you are looking at a rate of $25 for copper limited bandwidth from home to PoP.  Under a 1TB of data transferred (excluding IP) this would equate to $25-v-$85 (or worse case including a $10/Mbps backhaul charge $115)

- DF is only available to a subset of the exchanges of people covered by the NBN.  So, you then need to start averaging the wholesale costs for the areas NOT covered.

Firstly, I said that was to the majority of metro exchanges which is entirely accurate.  Secondly the "subset" of metro is a majority or metro.  By some research I did at PIPE 2 years ago we had DF to exchanges that covered over 6 million people.  From recollection a further 50 (large) exchanges have been installed since then.  Add to that that AMCOM, ESTA etc. in WA and SA I would expect DF to be available to almost 8 million people.  If you read the AGM presentations by companies like iiNet and TPG you will note their "on-net" customer base is higher than their "off-net".  The vast majority of these are fed by dark fibre.

You are worried about a tinkering of a $5/month delta on ULL (which I am happy to take an average approach including some Band 3 regionals) but don't have an issue with the extra $60/month for NBN?  Huh?

So, it's easy to create a bit of strawman about what the best-case is for this, but this doesn't represent the average cost.

No strawman, just stating economic fact.  Pushing out a NBN press release with a view to keeping the "headline" wholesale price down to $25/user based upon a user contention ratio of 1:250 on a 12Mb/s (average 48Kbps over a month) service is just amazing.  That's the same bandwidth as getting unlimited dial-up.  Why didn't they have a table showing costs under a variety of plans?

The silence on the NBN pricing is deafening.  Here's a little bit of irony.  International bandwidth pricing without competition was around $300/Mbps 3 years ago.  With competition it's now $35/Mbps.  Within the next 12 months it will be cheaper to get bandwidth from Iraq (Internet) to Sydney than from a the house next door to the PoI to the PoI.  Sorry - that's a bit extreme (but true).  I should have said in 12 months it will be cheaper to get bandwidth (transit) from anywhere in the world to Sydney, than from anywhere in the PoI to the PoI.

Who's clutching at straws?

[b]
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