NBNCo plan to grow ARPU steeply
It might just be possible that the ACCC have actually read the NBNCo Corporate Plan and investigated the projections.
Have a read of the NBNCo Corporate Plan and see how many times the plan mentions strategies to drive up average revenue per user (ARPU). I don’t expect wholesale prices to rise, but the pace at which prices fall will be significantly less than the growth rate in usage. Please don’t take my word for it, instead go and read the NBNCo Corporate Plan.
Plans for AVC pricing are outlined on page 67:
* 1000/400Mbps falls from $150 to $90, while the average speed grows from 30Mbps to 230Mbps.
* Price falls by 40% while average speed grows by 760%
Plans for CVC pricing are outlined on page 67:
* 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.
The saddest part of the NBNCo debate is that those people who consider themselves informed have been blinded by “fast internet” bright lights and don’t actually understand what the government is planning. Worse than prices rises is the fact that NBNCo are building a fibre network, while at the same time predicting that 50% will connect at 12/1Mbps.