> 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.