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

[Robert Hudson]

TPG will only build it where it suits them.

Consider the fact that has been widely used (and I've never seen it
questioned) that the NBN as  whole has a proposed 7% yield, whereas
commercial interests will seek a 15% yield before they will invest.

If we say 5m properties total with an average yield of 7%, but 1m of those
(the ones that will get covered by stuff like TPG are saying they will
offer) with an average yield of 15% (so just OK for commercial investment).
Those 1m properties end up being serviced by commercial interests, leaving
the govt to service the other 4m properties, which now have an average
return of only about 5% - not so attractive to the government now, is it,
or to consumers in that 80% who just had their monthly price bumped up.

Again - the benefit of the NBN is near-ubiquitous broadband access to all
of Australia, at an equitable price for all. It becomes a service to the
nation that enables the country to keep up with other nations as the world
becomes globalised and connectivity becomes the differentiator between the
rich and poor globally.
On 17/09/2013 7:04 PM, "Paul Wallace" <paul.wallace at mtgi.com.au> wrote:

> Version 1…****
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> TPG build it & if the offer is then low cost plus very fast, people will
> buy it.****
>
> In those circumstances the tax payers pay nothing****
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> In the Conroy model …****
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> The tax payers pay for 100%****
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> All fresh competition, possibly including the TPG FTTB rollout is banned**
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> All copper is disconnected****
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> All HFC is disconnected****
>
> .. thus allowing Mr Conroy to triple the price, provide lousy service via
> ‘the PMG-2” and you get the worlds most expensive broadband.****
>
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> *From:* AusNOG [mailto:ausnog-bounces at lists.ausnog.net] *On Behalf Of *Robert
> Hudson
> *Sent:* Tuesday, September 17, 2013 6:55 PM
> *To:* Tom Lanyon
> *Cc:* ausnog at lists.ausnog.net
> *Subject:* Re: [AusNOG] Screw the NBN, says TPG: We’ll do our own FTTB****
>
> ** **
>
> Of course it has an impact on the NBN. The NBNs price model is, amongst
> other things, dependant on scale and the number of premises connected.
> Reduce that number by a few million, and the per-port price will rise
> significantly, and those in less profitable areas ("the bush" as an
> example), won't have their pricing subsidised by the commercially lucrative
> connections (in "the city)".****
>
> On 17/09/2013 6:47 PM, "Tom Lanyon" <tom+ausnog at oneshoeco.com> wrote:****
>
> On 17/09/2013, at 6:09 PM, Jake Anderson <yahoo at vapourforge.com> wrote:
> > On 17/09/2013, at 5:14 PM, Nick Gale <nickgale at gmail.com> wrote:
> >> Are you saying we should have the ability for NBN competitors? If so
> why?
> >
> > 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.
>
> None of which would be an issue, assuming that this is all occurring in
> parallel to the NBN, right?
>
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>
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