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

[Shane Short]

Paul Wallace wrote:
> The whole thing is so fundamentally hypocritical it takes my breath away.
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> Take education for example ...
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> Today the tax payers of Australia continue to face further&  further costs to build new schools to educate our kids.
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> Fortunately Private schools discovered a business for themselves case despite the competition offering FREE education.
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> This is so attractive to the tax payers of Australia that today, tax payers part funds private schools. That's a lot LESS expensive than the alternative which would obviously be forced to 100% fund that education.
So you're saying we should completely privatise the schools? What about 
people who can't afford to spend many thousands of dollars a year 
putting their children through private schools? Why should we pay for them?
> Over to telecoms ...
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> The Government wishes to build the NBN to resolve the capacity deficiencies.
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> TPG offers on better than in the case of the private schools example&  asks for ZERO financial assistance, the effect of which is to save the taxpayers a fortunate.
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> The argument that you need to then build an NBN to every single household in the country (at the cost of $37 billion) just so they can raise funds to then use to fund the subsidization of the services in the bush is, with respect, utterly devoid of any logic!
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> E.G. why not just keep the $37billion&  impose a new tax to the same value instead?
I think you're missing the point here. TPG is cherry-picking the markets 
that will give it the best economic return. If everyone's allowed to 
cherry pick the 'easy' markets, you're going to be left with an 
incumbent or government entity which has to shell out substantially more 
expense per port to service-- making either the cost to the end user 
rediculously high-- or the the company itself won't make any money. The 
entire business model of Telco-- from oversubscription (think cap plans 
etc). to line rental; is that you make enough fat on some clients to 
cover the cost of providing to the customers you make less on. If you 
take the fat out, there's no sustainable business model here.

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> -----Original Message-----
> From: AusNOG [mailto:ausnog-bounces at lists.ausnog.net] On Behalf Of Jake Anderson
> Sent: Tuesday, September 17, 2013 6:54 PM
> To: Tom Lanyon
> Cc: ausnog at lists.ausnog.net
> Subject: Re: [AusNOG] Screw the NBN, says TPG: We'll do our own FTTB
>
> On 17/09/13 18:47, Tom Lanyon 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?
>>
> It means private networks would undercut the NBN for price in the "profitable" areas making the NBN which is meant to span the whole country not viable.
> How the coalition plans to solve this one has yet to be explained.
>
> IE
> NBNco now buys the copper off telstra for X $Bn, Telstra uses that money to drop fibre in the "profitable" areas, sells fibre services cheaper than NBNco can sell vdsl as NBNco is expected to support your aunt in the country and copper costs more to maintain anyway.
> NBNco goes bankrupt, gets sold back to Telstra for cents in the dollar.
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