[clug] [OT] Broadband clangers

[jeff]

  On 11/08/10 4:21 PM, Jim Croft wrote:
> The likely visible cost to consumers is interesting...  as whiz bang
> as the NBN might be, I may not be able to afford the best bits.  Using
> Transact monthly charges as an example:
>
>    Cable 1 M  $75
>    Cable 2 M  $85
>    Cable 8 M  $95
>    FttH 20 M  $85
>    FttH 30 M  $130
>    FttH 100 M  $150
>
> If I read this right, when the fibre comes to my door (2612, half way
> up the hill... are you listening NBN?) I should get a tenfold increase
> in speed for no additional cost (2M to 20 M) but it will cost double
> for the whole enchilada.
>
> Is there an expectation that once the rollout nears completion there
> will be some sort of shakeout in the industry and the consumers will
> benefit from their tax supported government investment and largesse?
Networks have huge fixed capital costs. So to first approximation the 
1st Mbps costs almost the same as the last. The deciding factor is 
congestion. If there's no congestion you can offer more bandwidth to 
each user. If there's congestion you raise prices to stop people using 
the bandwidth because your looking at a large capital outlay to upgrade 
the network.

Wouldn't go on Transact's (or is that Translack's) pricing as they are a 
price follower.

We really need to get away from volume charges in this country if we 
want the NBN to succeed. Otherwise, no-one will be about to afford to 
use all this bandwidth for more than one day a month.

Jeff.