[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
comparison.
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.

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



More information about the Link mailing list