On Sun, Apr 14, 2013 at 8:20 AM, David Connors <[email protected]> wrote:
> On Sat, Apr 13, 2013 at 9:13 PM, Ken Schaefer <[email protected]>wrote: > >> Currently the NBN charges are regulated by the ACCC, and they’ve >> already signed a consent agreement around charges rising by less than the >> inflation rate (i.e. requiring internal efficiencies). >> > The problem as you no doubt are aware is that NBN Co isn't *currently* > charging RSPs what it intends to. Specifically, there are no CVC charges > being levied. You are aware of that right? You do know that NBN Co is going > to charge CVC pricing that is within pissing distance of what I can buy > *domestic and international IP transit for* right? They're waiving it > during network build but you and the rest of Australia are in for a lot of > sticker shock. > >> If you’re so opposed to these types of monopolies, perhaps you should be >> agitated for privately provided sewerage pipes and water mains? There’s >> good economic reasons that certain industries (typically that require >> physical distribution channels) are called “natural monopolies” – the >> potential market can’t grow bigger, but adding more suppliers just divides >> the existing market between them in ever smaller amounts. Most economists >> would agree (if not all economists) that natural monopolies should be run >> by the government, or regulated by the government. They aren’t free markets. >> > Let me do your homework for you Ken, then you can tell me about the > benefits you'll be enjoying after NBN Co adopts its commercial pricing > structure: > > - ISPX needs to connect to NBN Co. > - ISPX needs to buy an office, hire support staff, network engineers, > build extremely high speed backhaul to 121 points of interconnect with NBN > Co. > - ISPX needs to buy all of the normal stuff to run their network > including LNS, routers, peering links, links with transit providers, a CDN > for selling Fetch TV, a VOIP system with call termination, blah blah blah. > > I don't know what that costs, but at the end of the day, it will be $x per > subscriber. I'm doing to call this $15 per subscriber as a completely out > of my butt figure. If you disagree with that, then you can happily change > it to a 3D hologram-frog-like figure of minus $15 per subscriber as it > won't make a knob of nanny goats shit difference to what I will type next. > > Then they have to enter into agreements with NBN Co for a number of > things. I am going to buy the 100/40 plan for this. > > Irrespective of every other cost of operating a business, NBN Co will > charge the RSP: > > - A bunch of POI interconnect fees. I'll generously throw them in the > $15 figure above. > - AVC (access virtual circuit - your own 'vlan') - *$38 per month per > subscriber.* > - CVC (connectivity virtual circuit) - *$20 per megabit per month per > service area* (internal NBN aggregation point of about 78K premises). > > As I said, CVC is waived while they haven't passed 30K subscribers in each > service area - and of course having only done 15K subscribers across the > whole country, this is currently waived nationally. > > This is just to get off the NBN (a layer 2 service with no services on it) > and onto the intarwebs. Oh, I forgot, the poor old ISP still has to pay > 30-60 bucks per megabit per month for international IP transit. > > Now let's run the numbers on your brave new world with greater efficiency. > > *Scenario A* > A home with a single on demand movie @ 4K resolution. That's about 9mbps. > The provider has to ensure that there is 10mbps available out of the > service area all the way back to their CDN. That will cost them $180 per > month per subscriber in CVC charges alone. If you add in the other figures > above, then we're talking $233 a month. > > I'm getting more that 9 mbps NOW from VDSL2. For far less than 233 a month. Changing to NBN should not change this, or if you say it is, then why? (in fact I get 9.79Mbps up, 34.42Mbps down) Now if you say "but that's not from a CDN, sure, I agree, because a majority of them are currently in the USA. But without something like a fibre network in Australia, what incentive is there with ADSL's mediocre speeds to build them here? (Hint, the speeds I mentioned I'm getting are from Transact, which WAS ALREADY USING FIBRE)) -- Meski http://courteous.ly/aAOZcv "Going to Starbucks for coffee is like going to prison for sex. Sure, you'll get it, but it's going to be rough" - Adam Hills
