Reply to post: Re: Why so hung about speed tiers

nbn™ adds premises to FTTC, HFC, slims down FTTN build


Re: Why so hung about speed tiers

It is a philosophical view point basied on my experiences of ADSL when Telstra was the only provider and the options were 256/64Kbps, 512/128Kbps or 1500/256Kbps. Most people opted for the slower speeds and this limited even VoIP without careful QoS configuration.

Secondly, Labor's justification for the NBN was services like eHealth & eLearning, but as the 2010 Corporate Plan points out the minimum recommended speed for this is 100Mbps. Currently in Australia on the fixed NBN <14% have these speeds.

Thirdly, the FTTP network is capable of delivering 1Gbps, but the pricing model puts those speeds out of reach of all but the very wealthy. As outlined by Labor the NBN should source the majority of it's revenue from usage not connection fees, as this is the area of greatest growth.

> We have speed tiers in NZ UFB, and it hasn't seemed to have damaged the system in the way you describe.

The Kiwis have a very different model to that established by Labor, including structural separation of the monopoly provider instead of creating a new monopoly. I've not looked at NZ in depth, because first people need to acknowledge the mistakes Labor made in the pricing model and then we can look at solutions.

> those who want it can get 1000/500 for not a huge increase in the wholesale price from Chorus

The wholesale price difference in Australia between 100Mbps ($38) and 1Gbps ($150) is $112, which some would consider reasonable. However since NBNCo made plans faster than 100Mbps available in December 2013 not a single RSP has made plans faster than 100Mbps available at retail. MyRepublic have run a marketing stunt for 1Gbps limited to 100 customers but that is it.

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