[LINK] cost of broadband

David Boxall david.boxall at hunterlink.net.au
Sun Apr 12 16:39:02 AEST 2009

At 12:35 PM Stilgherrian wrote:
> Linkers might also like Duncan Riley's series of blog posts analysing  
> this, each one becoming more refined as he works through them.
> ...
> NBN at $200/ month? Maybe"
> http://www.duncanriley.com/2009/04/11/nbn-at-200-month-maybe/
 From that last post:

> There is one scenario that might make it work. Not at $200. Maybe not 
> at $150. But it could work at $100-$150.
> Bundling.
> Triple play phone, data and tv.
> Gizmodo Australia found 
> <http://www.gizmodo.com.au/2009/04/how_much_would_you_pay_for_100mbps_broadband.html> 
> only 20% of people would pay over $100 for NBN access…but for internet 
> access.
> If say Optus or iiNet offered unlimited calls, cable TV and high speed 
> internet for say $150/ month, people might pay.
> But that consideration is made on today’s competitive environment.
> 2018 on the other hand??
Extracts from comments on the post:
> It would be nice if the Government was upfront and honest about the 
> fact that costs will most probably not be recouped. I think the 
> general public, with the exception of yourself and the other small-Gov 
> types, wouldn't really mind -- they understand that this sort of 
> project couldn't be built by a commercial enterprise because it is too 
> expensive.
> But does that mean it shouldn't be built? Should the Government only 
> ever do stuff that is profitable? Should every road be a tollway? 
> Every park have an entry fee? Or should the Government invest in 
> infrastructure that will dramatically increase the opportunities that 
> are available too many people and businesses.
> The infrastructure might not be profitable, but the startups that will 
> be able to flourish because of the infrastructures existence will 
> certainly be profitable and create many jobs.
> ...
> Yes, it will cost a lot of money -- but so what? If there's another 
> way, please let us know...
> I would pay $200 a month if there was a significantly high download 
> limit, something in the vicinity of 200gb (download only).
> Currently I pay $50 a month for 30gb data with Optus, I have an Optus 
> home phone, and we have Foxtel full package (non-HD).
> With that high a download I would be able to ditch Foxtel (save $110 / 
> month) in favour of iTunes, Hulu / Boxee, etc. as most of what I watch 
> is either available online now as either a stream or through iTunes.
> I would also be able to completely lose the home phone in favour of 
> Skype ($30 / month).
> Granted there are costs associated with iTunes and Skype, and not 
> everyone knows how to access Hulu / Boxee outside of Australia, but 
> with the push to have so much more content available online and being 
> able to stream it, I can see it getting pretty close to my current 
> monthly spend.

It's not a simple case of "$200? Shock, horror: I'm paying less than $50 
now for broadband". What will people pay for a bundle comprising 
landline, cable TV, broadband Internet and (perhaps) mobile phone? A 
quick look at <http://www.transact.com.au/packages/default.aspx> shows 
some totals well over $100.

David Boxall                    |  My figures are just as good
                                |  as any other figures.
                                |  I make them up myself, and they
                                |  always give me innocent pleasure.
                                |                     --HL Mencken

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