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

[Paul Brooks]

On 17/09/2015 9:57 AM, Noel Butler wrote:
>
> On 17/09/2015 09:37, Paul Brooks wrote:
>
>> On 17/09/2015 7:56 AM, Skeeve Stevens wrote:
>>> I am saying that while the CVC should be like $2.... if they aggregated their
>>> PoI's, you'd need a lot less because it would scale much much more and it would
>>> actually costs less.
>>
>> Methinks you're confusing topology with charging model. If you negotiated your
>> wholesale backhaul provider to just add up all the traffic on all the POI ports and
>> charge you for the aggregate, rather than per physical port, it wouldn't matter how
>> many actual POIs there were.
>>
>> This whole mess also seems to hang on two assumptions:
>> 1) every ISP needs to service the whole national footprint
>> 2) every ISP needs to charge the same uniform retail price all over the footprint.
>>
>> Are either of these true?
>>
>  
>
> Of course they are - unless you want to be blasted into extinction
>
> 1 - a necessity to compete/survive
>
> 2 - a necessity to compete/survive
>
> I'm truly amazed someone on THIS list assuming they have any RSP experience even
> asks such a question
>
There are still many many ADSL-based ISPs who serve the mainland but not Tasmania, due
to the high cost of backhaul to Tasmania.
There are many regional providers concentrating on a patch, providing local service by
locals, that don't need the high costs of trying to serve a national footprint.

So no - it isn't a necessity for every ISP to cover the entire national to compete or
survive. In fact, if you do, you'll genericise yourself into oblivion, since you'll
have no point of differentiation.

If you are close to a set of POIs, and choose to just service customers in that areas
where you have lower-cost/zero-cost backhaul or direct connection than anybody else,
allowing you to undercut national players with no local customer service and higher
backhaul costs, nothing wrong with that.

Back to the original subject - what I was getting to is that its perfectly OK to have
3 RSPs serving a far-off high cost location, and 300 serving the easy metro areas -
theres no problem for NBNCo to try to solve. Thats just geography in action.

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://lists.ausnog.net/pipermail/ausnog/attachments/20150917/6cdcbe2d/attachment.html>