Reply to post: Re: Move to charges based on contention instead of mb/s

Retailers would love an NBN backhaul tariff restructure


Re: Move to charges based on contention instead of mb/s

Firstly, pricing sends a signal to everyone.

* Low AVC prices encourage more customers to connect

* High CVC prices incentivise NBNCo to run a congestion free internal network so that RSPs receive full value for their CVC purchases.

>If they come with NBN mandated quality of service descriptions (something other than the meaningless speed tier) you'd know what the provided CVC was for an ISP which would allow you to choose one that provided the CVC bandwidth you were willing to pay for.

Quality of service is based on many more variables than just the contention ratio system. The most influential piece of data is tha amount of traffic. Assuming the same contention ratio, the potential for congestion for an RSP with quotas versus an RSP with unlimited plans.

Your plan prices for CVC significantly below the current pricing which means that AVC pricing will need to rise to compensate.

> For at least some ISPs that would probably provide a higher ARPU for the NBN and penalise someone who wanted to provide on 1Mb/s per user.

1Mbps can deliver reasonable performance if you have low quotas and significantly large diverse customer base.

> You can play with the values to provide different price signals that guided ISPs into providing something other really poor outcomes.

The reality is that the majority of Australians prefer to have slow speeds and unlimited quota. Unlimited plans and the associated poor performance have been around since well before the NBN.

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