[AusNOG] NBN

[Nathan Sullivan]

Just to touch on the CVC topic again... has anyone done the math on how
much the AVC would need to be increased to match the CVC charge revenue
base?

As we know, NBN Co has some revenue targets to meet all of their financial
viability requirements, and there are a few cost bases that they recoup
this through. The 2 large ones being CVC and AVC charges, with other
smaller ones such as NNI (from the perspective of overall revenue, not
itemised cost).

Based on the fact NBN Co has provided some figures in the past of
percentage of services on each tier (I don't have the most recent media
articles that were quoting those handy), that would allow calculating the
AVC revenue component to an extent, as services activated is a public
metric on the weekly reports.

Excluding the "other revenue" portion of things, this would then leave CVC
for the most part, plus a little for NNI's etc.

Being that NBN Co has stated that as traffic volumes increase, they will
drop the per Mbit CVC price (within a defined range for now, publicly a
figure of "$10"/mbit has been thrown around), that would effectively argue
that they just need to meet that % of overall CVC revenue somehow. If this
were done in the form of increased AVC, and in return CVC goes away and all
services can consume up to their AVC rate limit, or the maximum capacity of
aggregated NNI's on a per provider basis, would this be a more suitable
solution?

I suspect the AVC prices would have to go up a semi-decent amount for this
to stack up, but if the only scaling cost to RSPs is then adding NNIs
(which are closer in price to IX ports), would this avoid a lot of concerns
and confusion? I'd be interested in seeing what those numbers actually
looked like, and if someone does publish them what other RSPs would think
of them... I haven't had enough spare time to do the math myself yet :)

Open to feedback/suggestions/criticisms.

(Pricing document incase anyone wants to do the math:
http://www.nbnco.com.au/content/dam/nbnco2/documents/sfaa-wba2-product-catalogue-price-list_20161028.pdf
)

Regards, Nathan.

On Tue, Nov 22, 2016 at 5:20 PM, Mark Smith <markzzzsmith at gmail.com> wrote:

> On 22 Nov. 2016 11:33 am, "Alex Samad" <alex at samad.com.au> wrote:
> >
> > Hi
> >
> > there was some talk about our network being able to handle amazon video
> coming to oz.
> >
> > I'm thinking this might have more of an impact
> >
> > http://www.theverge.com/2016/11/21/13703152/netflix-4k-pc-
> windows-support
> >
> > All those 4k tv's being sold..
> >
>
> How many are actually being sold and how many are actually big enough for
> how close people sit to them for those people to benefit?
>
> To sit a normal distance of at least 6 feet away, you need a 70"+ screen
> to actually benefit. Smaller 4K TVs look great in the shop because you're
> standing much closer to the screen.
>
> http://referencehometheater.com/2013/commentary/4k-calculator/
>
> > from
> > https://en.wikipedia.org/wiki/4K_resolution
> > Streaming video[edit]
> >
> > YouTube, since 2010,[67] and Vimeo allow a maximum upload resolution
> of 4096 × 3072 pixels (12.6 megapixels, aspect ratio 4:3)
> >
> > High Efficiency Video Coding should allow the streaming of content with
> a 4K resolution with a bandwidth of between 20 and 30 Mbps.[72]
> >
> >
> > Not sure what the current average DSL connection is . But all your going
> to need is 2 kids (teenagers) and ....
> >
> >
> > if only it hadn't become politicised
> >
>
> No even wrong.
>
> CVC cost is the problem not FTTN. Changing to a literal 100% FTTP network
> would not solve that problem and would make it worse - NBNco have to pay
> for thosr loans somehow or other.
>
> > A
> >
> >
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> >
>
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