[AusNOG] NBN and CVC

[Mark Delany]

On 31Jul17, Mark Newton allegedly wrote:
> > What I was thinking is that NBN charges each RSP per byte - that's
> > billing/polling a couple of 100 RSPs at the NNI which strikes me as
> > very tractable.
> 
> Why are you proposing that a fixed-cost network needs to have a usage-based charge?

I suggested a fixed component for the fixed parts and a variable
component for the variable parts.

There *is* a variable component, namely the POI infrastructure as the
amount of data per user grows (as users consume more and as they move
on to faster tech). This also includes redundancy backhaul to an
alternate POI which would likewise grow with traffic volumes.

A 2015 POI serving FTTN and carrying 100Gb/s is different from a 2025
POI serving FTTP and carrying Tb/s.

There is also the matter of business systems, staff, offices and
whatnot.

These are not necessarily large components, but they are there. And I
never intended to suggest that they should be the main component of
the RSP invoice either. Maybe it's 5% or somesuch (at a wild guess).

> The costs of the NBN come from the number of end users it connects

Mostly. Which is why I suggested a fix LL fee per service. This would
be the largest component.

> In a regulated monopoly, the price should reflect the underlying cost structure.

That's exactly where I was going but it was more fine-grained than you
suggest. Smearing non-port costs into a per-port cost seems to
diminish transparency to me. Tho, they could of course just be
identified via itemized reporting that is ultimately smeared into a
per-port fee.

If I was to really go out on a limb, I might suggest that the port fee
is invoiced direct to the premise and the aggregation fees are
invoiced to the RSPs. Alignment of responsibilities and all that.

> Some ISPs have variable costs with usage. Fine. Let them set up whatever billing policies they like; some of them charge by the byte, some do fixed-cost all-you-can-eat with a traffic policy. Whatever. Their problem.
> 
> But not NBNco's problem.

I agree completely. NBNCo should be more or less providing an
unadulterated, unmetered pipe from user to NNI. Adding complex billing
layers and rate-limiting at various interfaces does no one any good
excepting those who fantasise about a commercial sale.


Mark.