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NBN has problems as a result of the coalition government’s cost-cutting policies

NBN’s latest proposal states that cost efficiency and Internet speed issues may not be resolved. Paul Budde..

NBNCo discussion paper Special access to undertake variations Welcome, but the question remains whether this really makes high-speed broadband more affordable.

on Many times, Controversial wholesale pricing system, especially connected virtual circuits (CVC), It depends on the usage status of the service.

It is difficult for retail service providers (RSPs) to build a suitable business model for broadband services because it is nearly impossible to predict this price. Price uncertainty is one of the biggest challenges that no company likes to face.

This was already addressed as a problem domain over 10 years ago. Simon Hackett, The founder of Internode, and how right he was.

Insufficient NBN provision for Australia in the 21st century

Australia’s internet speed continues to lag behind that of other countries, says Laurie Patton.

Finally, after all these years, NBN Co has come up with a proposal to consider replacing CVC with feed-in tariffs or parts thereof.

This is known as a variation of that special access business (SAU). In the past, the company has proposed other changes, but they have been rejected by the ACCC. Minister of Communications, Paul Fletcher, Also participated in the discussion and supports NBNCo’s softer SAU policy.

This interference was disliked by the industry, and the ACCC came out and soon declared its independence. But that’s clear: stakes are high.

The devil of new proposals has become more detailed as usual, and the industry is now testing these new proposals in its business model. It will also be a major discussion at the next industry conference with the ACCC.

At first glance, there is certainty, but the problem is that it can lead to higher prices for both the RSP and ultimately the end user.

Nevertheless, the government refuses to address the underlying financial problems of NBN. This is reflected in the fact that the cost is piled up due to its inadequate design. Multimix technology Communication network. Therefore, the actual market value of NBN is well below the construction cost.

The government wants to recover all these additional costs through higher fees to end users. Since NBN Co is a monopoly, the industry has little choice but to pay NBN costs at high wholesale rates and ultimately pay users high broadband rates.

If a private company had built an NBN, a similar situation would have occurred without this level of government-sponsored luxury.

I have been worried that the ACCC has allowed it to continue to control NBNCo’s monopoly. The next meeting may be extremely important. It sets the stage for the debate most likely to take us well in 2022.

NBN Co has also shown that its monopoly can be threatened by the RSP used. 5G It is a technology that bypasses the NBN and wants the government and ACCC to intervene to protect the monopoly of fixed-line communications infrastructure. This can be done as another variation of SAU.

If the government and the ACCC allow it, it’s really disastrous.

“NBN has finished”: What’s next?

The government’s NBN plan is undeveloped and dull, Paul Budde writes.

If the company built the first proposed fiber in the house (FttHWith the NBN version, you wouldn’t have fallen into this volatile situation. This was not an issue as the FttH infrastructure is far superior to the 5G infrastructure in terms of mass market high speed broadband delivery.

Flat wholesale prices and other changes work within NBNCo’s proposal by making NBN affordable for low-utilization customers. This can lead customers to move to alternatives such as 5G and reduce NBN uptake.

But what is that?The· I want to see the ACCC Maximum use of NBN. There are many different issues here, which can undoubtedly lead to intense debate and ultimately mediocre results that no one will be satisfied with.

NBN will continue to be political football unless the government bites bullets, reviews markets appropriately, and provides a clear vision of where to look at telecommunications in the broader context of social and economic policy. .. Networks and their changes remain patchwork of competing technologies and policies.

Paul Budde Independent Australian columnist and Paul Budde Consulting, An independent telecommunications research and consulting organization. Follow Paul on Twitter @PaulBudde..

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NBN has problems as a result of the coalition government’s cost-cutting policies

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