[clug] Light entertainment for this morning (NBN)

jm jeffm at ghostgun.com
Thu Apr 9 03:06:32 GMT 2009

grail at velocitynet.com.au wrote:
>> What he and nobody else has mentioned is $/Gb download costs.
>> 10Gb/mth at 100Mbps doesn't allow for a couple of TV channels, and would
>> be consumed in 3hours... That's gotta change.
> If the model works anything like the TransACT network in Canberra (I keep
> mentioning this company because they're already doing what the NBN wants
> to do), your 10GB/month Internet traffic will come from your ISP, over the
> broadband network, and you'll pay for the traffic separately from the
> bandwidth. The TV channels will then come over the broadband from another
> supplier (eg: SBS, ABC, Fox, whoever), up to the capacity of your
> broadband connection.

I think that the TransAct triple play strategy is the correct way to go. 
I've been waiting for Telstra and Foxtel to wake up to the potential here.

The main problem with the costing versus the technology is due to 
"accounting games." They talk about FTTN, but the trouble with this is 
that thi technology will be overdue for replacement before the 
amortisation period ends. If we take the amortisation period to be on 
the order of 20 years for anything in the ground, 10 years of data 
exchange equipment, and 5 years for customer premise equipment (CPE). 
Then you can see that the use of FTTN is a false economy as it will 
require upgrading of equipment in the exchanges and in the ground 
(cables) before the amortisation period expires. If however FTTP or FTTH 
is used then the CPE may need to be upgraded, but the equipment in the 
exchange, barring replacement for failure, and more  importantly the 
fibre should last the full period. If these things survive even longer 
then the return to investors will be even higher than the projection. 
Also, remember there's always the temptation to use something well past 
its useful life (power cables anyone)


ps. I picked the 5, 10, and 20 periods out of the air. Anyone have 
access to real numbers and care to comment?

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