[AusNOG] Fwd: [Internet Australia - members] Net neutrality

[Mark Newton]

On 24 Nov 2015, at 21:03, Brad Gould <brad.gould at gmail.com> wrote:
> 
> Or maybe we live on a massive Island with a tiny population a long way from the rest of the Internet, and that might not scale like some other markets?

We have one of the most urbanized populations on the planet, with virtually all of our people living in five large metros.

That excuse is the one used by Telstra in the 1980s to keep long distance charges high.

It should not be used by Telstra's victims^Wcustomers to explain away the massive chunks of cash they pay their largest competitor for the privilege of remaining in the market, nor should it be used as an expression of the status quo to make sure nothing changes when a brand new network is built later.

> The is also the expectation that the NBN will somehow be cheaper than existing products despite being a new physical build and more bandwidth.

It can be. That's a political decision.

How much did your road access charges go up when the South Road Superway was built?

Are you being charged a Defence Services Access Fee for the F-35's we're buying, at a cost 3 times higher than the current estimated total build cost for the NBN?

We spend twice as much as the NBN's total 15 year build cost every year on the health system (over $100 billion p.a.) even if the worst case NBN cost estimates currently supplied by the government come to fruition. The NBN cost is an actual rounding error compared to other government expenditure that nobody bats an eyelid at, no matter how much noise the press makes about blowouts.

There is no inherent reason why cost and price need to be linked. ESPECIALLY for a service as cheap as the NBN, operated as a public good.

Demand modeling: How much would CVCs cost if the NBN only needed to recover half of its costs from revenue? How much would it recover from revenue if the CVC was zero?

   - mark


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