Reply to post: Re: Feed the nbn my icon.

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


Re: Feed the nbn my icon.

> Btw cvc price [falls] under labor as demand rises but then some make a profit on it acording to you

If you missed the word falls then the first half of your statement is correct, however there is a catch. When you read the NBNCo Corporate Plan (2016) on page 67 you will find a chart, if you study the chart two facts become clear:

  • Starts at $20Mbps/Month when the average data usage is 30GB/Month and falls to $8Mbps/Month when the average data usage is 540GB/month.
  • Price falls by 2.5 times, while the average data usage grows by 18 times = growth in revenue from CVC of 720% when accounting for price falls.
Further on in the document is a chart showing the growth in revenue from CVC.

On page 118 of the NBNCo Corporate Plan (2010) this statement appears:

Despite the movement of residential consumers up the speed curve shown in Exhibit 9.12, the growth in AVC (PIR) ARPU is relatively modest. This reflects the small price differential between AVC tiers, and the decline in prices for the higher tiers. However, the consequence of more End-Users moving to higher speed tiers is reflected in the significant rise in the contribution of the CVC to overall ARPU, as increased speed drives increased usage.

It is this statement that lead me to my position that if Labor had been bolder in their plan, they could have eliminated speed tiers and by their own assertion this would have resulted in higher usage, resulting in higher CVC revenue. Sadly, Labor chose the medicore timid option of speed tiers and data charges leading to the current situation.

Statements like this make me think that your knowledge of Labor's NBN plan barely extends beyond the headline '1Gbps FTTP' and fails to grasp all the compromises Labor made.

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