[AusNOG] NBNco: "Let's start competing with our customers!"

[Mark Smith]

On 16 Sep 2015 7:20 pm, <ausftth at mail.com> wrote:
>
> Not content with their monopoly position and the mess they made so far,
the NBNco now wants to compete for POI backhaul with it's own customers too.
>
> "In a speech to the National Press Club today, Morrow said around 40 of
the NBN's national 121 points of interconnect (PoI) are currently too
expensive for smaller ISPs to reach.
>
> Morrow has accepted the NBN could have to play a role in forcing the hand
of the market, or stepping up if it turns out no one else is willing to go
to some locations."
>
> Now, I'm all for lower backhaul costs, but surely there would have been
better ways to go about this than this sudden change of heart.

If the private wholesalers can't connect to POIs and make a commercial
return, because the NBN has caused unrealistic bandwidth expectations for
the price paid, there is no other choice but for the government proxy to
step in and to subsidise the POI bandwidth costs.

I also find the assumption that RSPs must connect directly to POIs quite
irrational. Was it a requirement for ISPs who've provided Internet via ADSL
to connect directly to telephone exchanges? (121 POIs is easy compared to
that problem - there are 5500 exchanges in Australia)

> It's like some bloke at the NBNco found an Econ 101 textbook, happened
upon the definition of regulatory uncertainty and came up with the
brilliant idea of field testing the concept.
>
> Source:
http://www.itnews.com.au/news/nbn-wants-to-cut-access-costs-for-smaller-isps-409244
>
> Jared
>
>
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