[LINK] NBN pricing may dull broadband benefits: economist

[Jim Birch]

For most users, the link speed is not an issue.  Just as people will bump
up their quota when they hit it, people will bump their speeds when they
can't get stuff fast enough.  At present, the second problem is pretty
theoreticalbut as application requirements change this will become a real
issue.  I expect the the driver will be streaming multiple channels of HD
video into the home.  This will only really get going when enough people
have the required technology, ie, FTTH reaches critical mass.

>From the NBN's point of view, having a tiered approach makes sense: they
can get more customers on board at starter prices and charge more as usage
escalates.  Faster connections do have a cost in better routers and
infrastructure even though the underlying fibre in the ground is the same.
>From a project point of view we want to get the expensive fibre
infrastructure in and replace the routing gear as needed - it will be
cheaper later, when it is actually needed.

In other words, the " leading telecommunications economist" is a bit short
on economic thinking and a bit long on idealism.

Jim