back to article nbn 's CVC discounts worked - ISPs splashed for 38 per cent more bandwidth

Australia's internet service providers have responded to discounts in the Connectivity Virtual Circuit (CVC) by buying more bandwidth for their users, but the news isn't all good because they're still offering just 1.53 Mbps per user. That last figure comes from the Australian Competition and Consumer Commission (ACCC) which …

  1. -tim

    Still way overpriced?

    Perhaps someone from El Reg should look into why the CVC pricing model isn't more like a peering point exchange than and old school ISDN link? IX-Australia now provides 1gb for $350/mo or you can opt for the 10gb plan also for $350/mo but that is only in data centers. The NBN is still charging a link cost in addition to over charging for the CVC by a factor of about 500 and they are effectively a distributed peering exchange.

    1. mathew42

      Re: Still way overpriced?

      Cost (NBN Build + NBN Operating + 7% ROI) = Revenue (AVC + CVC)

      Labor's plan was always to see revenue grow from CVC income, and reduce AVC pricing = faster speeds.

      Liberal's plan is to reduce CVC income and keep AVC prices high = slower speeds

      Today we see unlimited data RSPs (e.g. Boom & MyRepublic) dropping or discussing dropping 100Mbps plans while quality RSPs (e.g Aussie Broadband) are increasing the number of locations with 250Mbps connections.

      I find it ironic that the fibre fanbois criticising the government for FTTN are campaigning for unlimited data plans and CVC prices to cut which means higher speeds will cost more and hence there is less justification for FTTP or even FTTC.

      The prices quoted by Tim are for backhaul between heavily serviced areas, whereas the NBN has a costly last mile build.

  2. Denarius Silver badge

    not worth the nondelivered promises

    yeah, we might buy less modest plans if we thought Satan was going to buy a fur coat. No point if the end user does not get much better performance than the cable link I had a decade a go which struggled to deliver 1 MB/sec. Even the 25MB/sec package rarely gets into low, low MB/sec speeds. Just did a Debian upgrade which was showing 20KB/sec for a while before crawling up to 300 KB/sec. Acquaintances with fiber to their homes have much better speeds. They live where fiber went in before the scungy Monk stopped a modern system being built.

    1. mathew42

      Re: not worth the nondelivered promises

      NBNCo are on record that the the average FTTN speed is 68Mbps and that utilisation is 15%.

      It is more likely that your issues are caused by selecting a budget RSP providing unlimited data plans with insufficient CVC.

      1. julianh72

        Re: not worth the nondelivered promises

        Average FTTN speed might be 68 Mbps - but one third cannot get better than 50 Mbps, and 6% can't get better than 25 Mbps:

        1. mathew42

          Re: not worth the nondelivered promises

          FTTN unable to achieve faster than 50Mbps: 30%

          FTTN % of fixed connections: 40% = 12%

          % of premises connected (final estimate):: 30% = 4%

          Pretty sad when replacing FTTP by FTTN impacts only 4% of the population because of Labor's speed tiers. These numbers should indicate to you why LNP aren't worried about electoral backlash over FTTN.

  3. Anonymous Coward

    Why ? Why? Why?

    Why would smaller providers have to fight across rival links ?

    Why would the major telcos sell to minor providers when they could provide the same lower priced services ?

    Why would government not legislate for the broad competitive landscape it wished for ?

    Why do we allow the government to (instead) create such a slack situation in the first place ?

    I'm still shocked that Macquarrie bank, when consulted by the Australian Labor party told them that you could not divide up Telstra. They obviously they did not consider getting an axe to it and chopping it into tranches. ! For a division, all that had to be done was to create a separate company and move assets and credit into it, providing credit as future paid rental on buildings and hardware if required. it would have been the retail arm called Telstra and the wholesale arm Telecom !!

    Why did the Australian Labor party pay Telstra 11 billion dollars for such a decrepit bunch of wires in asbestos pits ?

    Why do the Australian Liberals have to sell off everything whilst giving business tax breaks ? can't they see a great internet service would facilitate splendid business across it ?

    Why aren't Australian streets paved with gold ?

    why do more investors go overseas than invest in Australia

    Why do many from those overseas countries invest in Australia instead of their own country ?

    The answer are the same, forsaking value under their noses for/over their imagination and perceived immediate or short term gains.

    That to really invest in Your Own Product takes time and effort that no one wants to spend on that because it is too risky,(though many will buy (Idiot) bit coin).

    Everybody wants some one else to do it, and in Australia business negatively gears interest, depreciates capital assets and writes of losses so the citizens all pay it anyway as well as a premium on the price of the product or service we eventually get.

    It was a grand idea that Kevin 07 Rudd had, but like Labor on most things it was in too much of a hurry (they are time greedy) and wanted to do everything all at once, Tony Abbott (Tony Yeah But!) and the far right Liberals are not Liberal but Republican in all but name and are frightened of their own shadows.

    Malcolm (Ozemail) Turnbull is more a Liberal but is haveing to kiss those babies (in the party) or they'll run away and cry when it comes to voting.

    We allow our politicians to affirm or swear allegiance to queen, country and the people (or two of the three) and then serve their party and it's members instead, who have not sworn allegiance to anyone but themselves.

    Don't imagine any more evaluate, perceive, plan, decide and act. Build a better internet for this bloody country.

    NBN = No Bloody Network

  4. OffBeatMammal

    having just moved back to Australia after some years in the US as a Comcast customer, I have to say I'm astounded that in the decade I've been away progress seems to be ... zero.

    I'm currently living in an Airbnb in South Melbourne - some 15 minutes on a tram from the CBD and the best we can get is ADSL2+, and it's horrific (I presume either the copper from the DSLAM to the house, or the internal wiring, I've already helped the landlord replace one crappy socket!) ... but it's not filling me with confidence that when we move out 30 minutes to the East we'll be able to get anything better than pigeon post... the street we're moving to indicates that they won't even have information available on planned rollout for a coupe of months.

    The fact that partisan politics and lobbyists can screw up something like this is a joke... the interesting thing is going to be if Optus or TPG swoop in with a 5G based solution and make all the expense of this rollout redundant (wasting yet more of the taxpayers money)

  5. Anonymous Coward
    Anonymous Coward

    speed upgrade.

    I recently upgraded from a 25Mbit plan to a 50Mbit plan.

    Speed test has gone from 25Mbps to 28Mbps.Thanks FTTN!

    Luckily the plan is the same price.

  6. Anonymous Coward

    Dear NBN here's a How To :~

    So it's obvious NBN should not charge for speed but charge by volume

    A retailer could charge in base units of 25gb, 50gb, 75gb..... and allow for extra an elastic (variable) amounts up to the unit quantity in the base, which could be charged in multiples of that quantity when it is reached.

    25gb + elastic amount up to 25gb where by it would be charged at 2x 25gb if that value was reached etc.

    NBN retailers would be able to purchase and apply full bandwidth (within the lines capacity) and supply units of a knowable volume at base rate and a reasonable charge for excess amount.

POST COMMENT House rules

Not a member of The Register? Create a new account here.

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon

Biting the hand that feeds IT © 1998–2022