Re: Move to charges based on contention instead of mb/s
| The post assumes that plans should include unlimited data.
No, that's your assumption.
What I am trying to get across is that the formula used by the NBN is overly simplistic and doesn't deliver any reasonable outcome for anyone other than the NBN. CVC pricing could be based on a tier system such that providing less than 5Mb/s per user was penalised for example (warning made up figures change them to suit what you want):
1-4 Mb/s 15.75 per Mb/s
5-9 Mb/s 25.00 + 5.00 per Mb/s above 5
10-14 Mb/s 30.00 + 2.00 per Mb/s above 10
15-19 Mb/s 35.00 + 1.50 per Mb/s above 15
20-29 Mb/s 40.00 + 1.00 per Mb/s above 20
30-50 Mb/s 45.00 + 0.75 per Mb/s above 30
50-100 Mb/s 50.00 + 0.50 per Mb/s above 50
100+ 70.00 + 0.20 per Mb/s above 100
If as an RSP it was cheaper to provide 5Mb/s per user for CVC than 2Mb/s and perception of your service was significantly better why wouldn't you (assuming you had the backhaul from the POI)? You could also announce that the 1-5 tier would no longer be available for purchase from Jan 1st 2020 and as time moves on you drop off the lower tiers and lower the prices if the ARPU got past certain benchmarks.
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. If your AVC charge was $20 you'd get at least 35.75 per user at 1Mb/s per user and more than likely it would be 45 or 50 based upon someone choosing to provide 5Mb/s per user or 10Mb/s per user (which is better than it is currently - the ARPU that is).
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. You can play with the values to provide different price signals that guided ISPs into providing something other really poor outcomes.