Reply to post: Re: CVC pricing is still insane

nbn™ blames cheap-ass telcos for grumpy users, absolves CVC pricing

mathew42
FAIL

Re: CVC pricing is still insane

If you cut CVC revenue to 1%, the AVC revenue has to rise to compensate. Effectively this means that high speeds will become even more expensive and less obtainable.

The NBN financial model is based on a few princples as documented in the NBNCo Corporate Plan:

- AVC being low to encourage people to connect and CVC is higher to cover costs.

- Cross subsidisation between high density fixed, low density fixed, wireless and satellite services.

In NBN: Internet providers say controversial CVC charge for bandwidth is too expensive appears this statement:

Independent telecommunications analyst Paul Budde said politicians were going to have to admit they made a mistake, and write off half of the cost of the NBN.

The fibre fanbois are still claiming that Labor's plan was perfect, so I don't expect this to happen.

Effectively most RSPs are offering discounted unlimited plans with hgh congestion because this is what the marketplace demands. If RSPs implemented reasonable prices and quotas the congestion problem would disappear. Instead the RSPs are pressuring the Government into subsidise their operations. Telstra wholesale pricing for AGVC (similar to CVC) is $65/Mbps. At $14.40 NBNCo CVC is cheap. Government subsidies should be for people on low incomes not big business.

In the same article there is also the clueless customer blaming FTTN for slow speeds:

When she checked her speed at around 6pm on Monday night she was getting 16.4 megabits, but she said that was the fastest she had seen it in a while. Ms Wray said her average download speed was just 7 megabits, slower than when she was on ADSL.

If the problem was FTTN then speeds would be consistently slow. Speeds fluctuating indicates congestion. What is the bet she is on an unlimited plan.

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