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

[Tim McCullagh]

Following Roberts argument below

Then why shouldnt the government mandate that all Australians can only buy Australian built cars. 

No more need to Government assistance to the car industry as they will then have the economies of scale, put aside the issue of whether those are the cars we want to buy in the same way as the nbn is providing an asyncronous service when I want a syncronous service.

The whole argument comes down to a mater of choice and does the government know best, put aside the issue of the fact that the government does not have any money.  The Government has to take it off someone before it can give it to someone else.


Regards
 
Tim
 

  ----- Original Message ----- 
  From: Robert Hudson 
  To: Paul Wallace 
  Cc: ausnog at lists.ausnog.net 
  Sent: Tuesday, September 17, 2013 8:25 PM
  Subject: Re: [AusNOG] Screw the NBN, says TPG: We'll do our own FTTB


  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…

    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





    In the Conroy model …

    The tax payers pay for 100%

    All fresh competition, possibly including the TPG FTTB rollout is banned

    All copper is disconnected

    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.















    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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