back to article nbn™tries to ease peak hour crunch with cheaper bundles

nbn™ has announced new wholesale bundles it hopes will overcome the despised peak-hour crush: a 50 Mbps access product with 2 Mbps of CVC traffic in the bundle; and a 100 Mbps access product with 2.5 Mbps of CVC. The 50 Mbps product has a wholesale price of AU$45 per month, and the 100 Mbps product is $65 per month. nbn™ said …

  1. GrumpyOldBloke

    > averaged across all users, the average uncontested throughput of the NBN is a mere 1.3 Mbps.

    But there's the rub. The end user experience is not benefiting from aggregate bandwidth across the whole of the NBN but only their little POI. 121 POI's didn't just make it more expensive to reach the customer but also limited the ability of the RSP's to aggregate CVC across a significant proportion of their user base.

  2. aberglas

    12 Mbps for $22 per month.?

    Where can I buy these? iinet sells "Basic" for $70/mo. Bit of a surcharge.

    Sure there is more to an ISP than the NBN, but it is also the case that the "last mile" (i.e. NBN) is the most expensive?

    If 12 Mbs was priced at a substantial discount to 25Mbs, then many if not most people would sign up to it. 12 Mbs is enough to drive 8 ordinary DVD quality televisions provided Windows Update can be tamed. More than enough for most.

    (Yes. 1.5mbs per TV. I know, I have a crappy ADSL line and use Gargoyle to throttle the TV to 1.5 mbs and it works fine.)

    1. Tim99 Silver badge

      Re: 12 Mbps for $22 per month.?

      For most normal punters there is a significant access connection charge too. We live in a retirement village where we currently have about 150 units connected that share the same nbn fibre connection to our central comms room. We each pay $33/month for 100/40Mbps with unlimited downloads. As we all share the same wholesale CVC our measured performance can vary during the day. The busy times are ~5:00-9:00pm when we all seem to be on our smart TVs. The worst that I have seen has been about 28Mbps up and down, currently (8:15pm) Speedtest shows 53/33Mbps.

      1. mathew42

        Re: 12 Mbps for $22 per month.?

        It would be interesting to see the cost breakdown for your service. 100Mbps AVC wholesale price is $38 + GST, so most likely you are sharing a connection. Let Lets assume that 100 units are connected that is $3000 / month + GST in revenue. Lets assume a small business plan with a premium ISP like Aussie Broadband is $195. That is a significant gap between what you are being charged and the cost of the service. Now it may not be unreasonable when you consider the cost of connecting each unit and ongoing maintenance.

        So your contention ratio is 150:1. The fact your worst recorded speed is 28Mbps is remarkable. I suggest not mentioning video streaming to your neighbours because that speed could plummet rapidly.

  3. mathew42
    FAIL

    > The CVC pricing bears no relation to the network cost of providing the transmission that represents

    It costs the same to deliver a 12Mbps speed and a 1Gbps speed connection. What the above statement misses is the need to upgrade backhaul (including routers & switches) to cope with increased traffic.

    The pricing model for the NBN is entirely an artificial construct defined for price recovery and the political constraint that a 12Mbps plan should cost no more than an ADSL plan. The basic equation is that AVC + CVC > costs.

    Labor cleverly decided that revenue growth would come from data growth. RSPs by offering unlimited plans have undermined this. Unlimited plans only benefit a small number who are heavy downloaders. The majority who are below the mean would save money on a plan with a quota. The problem is that a small number of people will thrash the network impacting on everyone. Data quotas effectively control this scenario and push costs on to those who make the most use of the network.

    If Labor hadn't added speed tiers we wouldn't have FTTN, FTTB & HFC. Instead today 84% are connected at 25Mbps or less and those on faster speeds who foolishly select a provider with unlimited data plans experience congestion in the evening.

    1. Tannin

      Well said Matthew.

      It is a pity that your downvoters haven't even bothered to explain what it is you said that they disagree with. One is forced to assume that they are simply parasitic download junkies who dislike any hint that they should no longer be allowed to leech off the rest of the community.

    2. ChosenChaos

      "If Labor hadn't added speed tiers..."

      And never mind the fact that speed tiers have been a part of broadband connections ever since ADSL was first rolled out to residential consumers in the middle of the last decade. When I got my first broadband connection in mid-2005, I had the option of 512/128kbps, 1.5Mbps/256kbps or 8/1Mbps.

    3. Jasonk

      "It costs the same to deliver a 12Mbps speed and a 1Gbps speed connection. What the above statement misses is the need to upgrade backhaul (including routers & switches) to cope with increased traffic."

      Funny about increase traffic when the last mile is only required to deliver 25Mbps. What the cost of increase that so far it's $10k - $150k per house.

      "Labor cleverly decided that revenue growth would come from data growth"

      Considering only counts for 1/3 on the income for nbn.

      "those on faster speeds who foolishly select a provider with unlimited data plans experience congestion in the evening."

      Even those on slower speed experience congestion. Cvc is 1Mbps between all ISP. But then hfc has a physical congestion of 1Mbps atm and fttn has a 5Mbps congestion fttp has 80Mbps congestion.

  4. mathew42
    Devil

    What is to stop an RSP buying the cheaper bundled 100Mbps product for the ~14% connected at 100Mbps and reducing their CVC spend for 12 & 25Mbps plans?

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