[clug] [OT] Broadband clangers

[Jim Croft]

Sorry I was a bit ambiguous - the costs below were just for the
connection.  Netspeed as ISP have their hand in the other pocket for
the download volume. :(

presumably with the higher bandwidth available, people will be
downloading orers of magnitude more and ISP volume charges will take a
hit?  Or is this cloud cuckoo stuff?

jim

On Wed, Aug 11, 2010 at 4:36 PM, jeff <jeffm at ghostgun.com> wrote:
>  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.
>
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