[AusNOG] NBN 3 year construction plan

[Mark Andrews]

In message <20151016102743.W4177 at ali-syd-1.albury.net.au>, Ross Wheeler writes:
> 
> 
> On Fri, 16 Oct 2015, Paul Wallace wrote:
> 
> > What term would you use to characterise the introduction by a Government 
> > of a monopoly into a deregulated space, followed by the passing of laws 
> > designed to cripple competition? I can't think of an appropriate 
> > nomenclature ... only expressions of disbelief when perpetuated by a 
> > supposed "free market" Government!
> 
> But wait, it gets better.... their sole purpose for regulating competition 
> OUT of the market is that without that protection, the NBN can't make 
> money, and if it's not making money they can't flog it off in a few years!

The purpose for regulating competition out of the market place is
to make it viable to service the entire country with reasonable
bandwidth.  To do this they need to cross subsidize some connections.

By bringing everyone up to minimum levels it ends up benefitting
those providing the subsidy as well as those receiving the subsidy
as rest of the world can design products that work with that level
rather than working to the lower capabilities presented when the
cross subsidization is not there.

Now you could do the subsidization by grants, tax breaks and other
measures to those that are outside of the areas covered by the
existing infrastucture but it would end up costing more.

Mark

> (And having spent that much money on something that by design "must" make 
> money, why would you then sell it off instead of using it for ongoing 
> funding of all the other things the country needs?)
> 
> The mind truly boggles.
>
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-- 
Mark Andrews, ISC
1 Seymour St., Dundas Valley, NSW 2117, Australia
PHONE: +61 2 9871 4742                 INTERNET: marka at isc.org