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

[Paul Brooks]

On 16/09/2015 8:19 PM, Mark Smith wrote:
>
>
> On 16 Sep 2015 7:20 pm, <ausftth at mail.com <mailto: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.
>

So the POIs were sited at locations with at least two competing fibre backhaul
providers already.
The fibre is already there - there is no further build cost for backhaul.
The ACCC has just adjusted lower the maximum price that any provider can charge for
backhaul - I'm sure its still above street pricing, but there's got to be room for a
commercial deal.

Where are the 40 locations where the two/three existing fibre backhaul networks can't
be bothered to compete for your traffic?

If I was a shareholder of one of those wholesale networks, I'd be pretty annoyed that
management had expended the CAPEX to build the link, and wasn't bothered trying to get
some revenue and traffic to boost the utilisation of the link to pay off the investment.

Or are ISPs not bothering to exercise their buying power- provide me a good deal to
reach that far off POI on your network, or I'm taking all my other business from the
other juicy POIs to your competitor?



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