[AusNOG] Screw the NBN, says TPG: We’ll do our own FTTB

Tue Sep 17 18:52:20 EST 2013

Jake

The rational economic analysis of what you are saying is that it assumes
that for high speed broadband to be offered "equitably" to everyone, people
in the low cost areas must pay higher prices to cross subsidise the higher
cost areas' prices. That is the current NBN model.

There's a few ways around that.

One is for people in the higher cost areas to pay more (subject to a price
cap). That's how PSTN pricing is constructed now, it is capped at a
ceiling, not a minimum.

Another is for the higher cost areas to be directly subsidised from
government revenue: instead of indirectly taxing city folk through higher
tariffs you directly fund rural broadband costs from consolidated revenue.
This is the approach now taken by TUSMA funding of the rural copper loop
which would remain operative even under a FTTH NBN as it will be retained
for the final 7%. What one does in this sense is expand TUSMA funding to
cover broadband. The advantages of this is you aren't taxing broadband at
the source (high city tariffs) but at the level of externalities (the
general wealth created by broadband and everything else). Anyone who
genuinely believes high speed broadband creates wealth should ideally
support taxing at the externalities level not the broadband purchase level.

Another is for government to subsidise private investment in the higher
cost areas, much like it is doing with the dollar for dollar co investment
plan for rural mobile blackspots.

There are lots of ways to fund rural broadband which don't require a total
monopoly derived cross subsidy.

On 17 September 2013 15:39, Jake Anderson <yahoo at vapourforge.com> wrote:

>  Because if you don't then private enterprise will build a bunch of
> little fiefdoms where it will be uneconomical for anybody else to try to
> take market share with diminishing returns, and as a bonus all those areas
> in "the bush" that the population as a whole is rather fond of won't get
> any services at all because its not "economic" to do so.
>
>
> On 17/09/13 18:09, Paul Wallace wrote:
>
> I can see it now ...
>
>  Q: Minister Conroy, .. why build an NBN?
>
>  A: If the government doesn't build it no one else will.
>
>  Q: so .. er, why do you need legislation preventing competition?
>
>  A: What are you .. a f$&:5$@/3$&!ing Turnbull supporter?!
>
>  !!!
>
>  !!!
>
>
>
>
> On 17/09/2013, at 5:37 PM, "Grahame Lynch" <grahamelynch at commsdaymail.com>
> wrote:
>
>    They actually talked about it Paul in their verbal commentary today
> and say they think they are covered but just in case they are prepared to
> provide open access or cap speeds at 24Mbps just in case.
>
>  Yes there are exemptions in the law but they are ambiguous and clearly
> the spirit of the legislation was to prevent an overbuild equating to 7-10%
> or so of the population. The point is they aren't completely 100% sure of
> where they stand - clearly expanding superfast broadband capable tails to
> half a million apartments could conversely be viewed as an "*extension,
> alteration or upgrade".
>
> *
> *Or put it another way; doubt they would have announced this if Conroy
> was still the minister....
> *
>
>
>
>
> On 17 September 2013 14:28, Paul Brooks <pbrooks-ausnog at layer10.com.au>wrote:
>
>>  On 17/09/2013 2:09 PM, Grahame Lynch wrote:
>>
>>  This is what the legislation says:
>>
>> *A network unit that belongs to a telecommunications network (other than
>> the national broadband network) must not be used to supply a fixed-line
>> carriage service if: *
>>
>>
>>  However S141C:
>>
>> *Certain installations and connections are not taken to be an extension,
>> alteration or upgrade*
>>
>>                    For the purposes of this Part, if:
>>
>>                      (a)  a line<http://www.austlii.edu.au/au/legis/cth/consol_act/ta1997214/s7.html#line>is or was installed for the purposes of connecting particular premises to a telecommunications
>> network<http://www.austlii.edu.au/au/legis/cth/consol_act/ta1997214/s7.html#telecommunications_network>;
>> and
>>
>>                      (b)  the installation of the line<http://www.austlii.edu.au/au/legis/cth/consol_act/ta1997214/s7.html#line>enables or enabled the occupier of the premises to become a customer in
>> relation to carriage services<http://www.austlii.edu.au/au/legis/cth/consol_act/ta1997214/s7.html#carriage_service>supplied using the network; and
>>
>>                      (c)  the premises are in close proximity to a line<http://www.austlii.edu.au/au/legis/cth/consol_act/ta1997214/s7.html#line>that forms part of the infrastructure of the network; and
>>
>>                      (d)  the network is capable of being used to supply
>> a superfast carriage service<http://www.austlii.edu.au/au/legis/cth/consol_act/ta1997214/s142a.html#superfast_carriage_service>;
>> and
>>
>>                      (e)  the network came into existence before
>> 1 January 2011;
>>
>> neither the installation of the line<http://www.austlii.edu.au/au/legis/cth/consol_act/ta1997214/s7.html#line>mentioned in paragraph (a), nor the connection of the premises, is taken to
>> be an extension, alteration<http://www.austlii.edu.au/au/legis/cth/consol_act/ta1997214/s142a.html#alter>or
>> upgrade<http://www.austlii.edu.au/au/legis/cth/consol_act/ta1997214/s142a.html#upgrade>of the network.
>>
>> So if the main  fibre trunk cable was already passing the building prior
>> to 1 January 2011, they could extend it into the basement and claim it was
>> already "in close proximity" to the building, so is not an extension,
>> alteration or upgrade - so isn't required to provide a L2 bitstream service.
>>
>> Similarly S141B allows new network extensions of less than 1 kilometre to
>> be allowed, provided the network being extended existed prior to 1 Jan 2011.
>>
>> Somehow, I suspect they've covered these things off before making the
>> announcement.
>>
>> P.
>>
>>
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