[LINK] NBN retail cost

Michael Skeggs mike@bystander.net mskeggs at gmail.com
Fri Mar 11 13:29:50 AEDT 2011

> On 2011/Mar/11, at 12:40 PM, stephen at melbpc.org.au wrote:
>> Thanks Marg. But imho a 7% NBN markup might be remarkable. For example:
>> <www.zdnet.com.au/50mbps-500gb-on-nbn-may-cost-81-retail-339308109.htm>
>> "The details were revealed in the NBN Co three-year corporate plan
>> released by the Federal Government earlier today .. the document did
>> estimate that a basic 12Mbps downlink/1Mbps uplink plan on the NBN with a
>> 50GB download limit would cost around $56 (and $24 wholesale) while a
>> customer on a 50Mbps downlink/20Mbps uplink service would expect to pay
>> around $81 (and $34 wholesale) for 500GB of downloads per month."
>> So NBN Co plan markups still seem like provider-cash-cow territory to me.

Bear in mind that a retail ADSL2+ link with a sensible data allowance
runs from $30 (TPG) to $69 (Telstra) and they both require a PSTN line
rental ($30).
The prices above include everything required. And since SIP VoIP is
widely available for $0 (just call costs) it is a reasonable
I stand to be corrected, but I think a current shared spectrum ADSL
wholesale service is still $20+ and wholesale line rental is over $15,
so the wholesale rate for a basic service is considerably cheaper for
a basic service under an NBN model (of course ULL based service is
cheaper, but requires significant infrastructure for an ISP).
I would also anticipate that players like TPG would be operating on
much thinner margins than NBN's average projection, so I think the
projected $56 & $81 are more likely to be projected Telstra price
points than rock bottom ISP rates.

Michael Skeggs
(speaking soley for myself, not my telco employer)

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