[LINK] NBN costs

David Lochrin dlochrin at key.net.au
Mon Jul 31 12:52:25 AEST 2017


On 25th July 2017 David Boxall wrote (complete text below):

> The economics of fixed wireless are questionable, it seems, at least under some circumstances:
> So here is the juicy detail
> [...]

Those figures are not very convincing unless all cost components are identified as line items and sourced.

For example, the FW cost evidently includes the cost of customer premise equipment ($1,300), but what does the "average cost for each upgrade a FW tower" include?  Is the initial cost of installation of the tower, radio gear, and backhaul included somehow?

And what is included in "cost to install FTTC in FW areas of Bellingen" (evidently $2,600 per premise)?  That figure looks way too low if it includes the cost of customer premise equipment and running fibre around a brownfield site.  And if it's a greenfield site, there's an argument that the developer's cabling cost should be included anyway, even if it's not a cost to NBN Co., because the buyers wind up paying for it.

It would also be very illuminating to compare the operating cost (OPEX) of these technologies.

David L.

Original text:

> The economics of fixed wireless are questionable, it seems, at least under some circumstances:
> So here is the juicy detail
> The figures we have been provided are as follows:
>
> Cost to install FW in a Premises = $1,300
> Average cost for each upgrade a FW tower = $60,000
>
> So costs for sunset Ridge Estate to date:
> 65x$1300 = $84,500
> 4x$60,000 = $240,000
> total= $324,500
>
> Costs to put FW in all houses allotted to Bellingen
> 247x$1300 = $321,000
> 7 x $60,000 = $420,000
> Total = $751,100
>
> Cost to install FTTC in FW areas of Bellingen
> 247x$2600 =$642,200
>
> To remind readers of the difference between FW and FTTC
> Projected speeds of FTTC = 5Gbps
> Projected speeds of FW = 0.1Gbps
>
> Cost to upgrade from fTTC to FTTP = $1000
> Cost to upgrade from FW to FTTP = $50,000
>
> NBN were provided these costs and did not deny them
> <https://www.facebook.com/groups/BIRRR/permalink/715021475373209/>
> Associated article in local media:
> <http://www.bellingencourier.com.au/story/4810879/questions-of-cost-and-speeds-continue-to-dog-nbn-debate/>



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