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

[Mark Smith]

On 19 Sep 2015 21:50, <ausftth at mail.com> wrote:
>
> > I call this "making the best of a bad situation"
>
> I'd have more sympathy for that argument if the mess wasn't of their own
making.
>
> The main takeaway here is that NBNco is destabilizing the market by
unilaterally expanding their product offering. There are existing backhaul
providers and aggregators out there covering all POIs. They may be
expensive, but they are still there and available on commercial terms.
Messing with that ex post facto is just poking the bear. I'm pretty sure
that in the EU this would be considered illegal state aid.
>
> There are better ways to deal with the expensive backhaul situation. In
any case I don't consider the backhaul market to be the biggest issue. At
least in backhaul there is a market. Not so with the NBNco's own network.
Since we most likely can't have the NBNco's monopoly rescinded, we should
do the next best thing and work on the CVC issue. CVC charges are so over
the top it's not even funny and there is no other option. NBNco should be
working on lowering and ideally removing the CVC charge completely.
>

Which means that AVC prices must go up, otherwise how are they going to
both cover their costs and make a profit (which is a political mandate)?

>
> Jared
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