Recent comments from telecommunications providers Telstra and Aussie Broadband about their decreasing profits from NBN sales underline how short-sighted the Labor government was to keep the expenditure for the NBN off-budget and insist that it be repaid by the company set up to create and run the network.
The company rolling out Australia's national broadband network will waive charges for up to 40% additional use of CVC by retail service providers from 23 March onwards due to the additional load on the network, after many Australians started working from home this week after the coronavirus started spreading in the country.
Small Tasmanian-based Internet services provider Launtel is likely to stop offering its 250/100Mbps NBN service in Canberra due to the "extremely expensive" CVC charges imposed by NBN Co, the company that is building Australia's national broadband network.
Poor Stephen Rue. Having been handed the equivalent of a shit sandwich by his illustrious predecessor Bill Morrow, all that the new chief executive of NBN Co can is to pony up when the company's quarterly results are due and go through the motions.
Smaller retail service providers who are selling NBN connections may be forced out of business after October this year when the bundles sold by NBN Co more or less become the single way that RSPs buy bandwidth from the company, Damian Ivereigh, chief executive of the small Tasmanian ISP Launtel, claims.
NBN Co, the company rolling out Australia's national broadband network, the NBN, has launched a new product to enable retail service providers to acquire AVC and CVC directly from the company without needing a physical connection to all 121 points of interconnect.
Contention ratios alone would not be enough for consumers to make a judgement as to which ISP would provide sufficient bandwidth for their needs, an academic claims.
The chief architect behind TransACT has suggested that if NBN Co were to make contention ratios available to consumers, it would help them choose retail service providers who could supply the speeds they sought.
Vodafone Hutchison Australia claims that the key issue in high prices for NBN connections is that the relative price of the AVC and CVC is weighted too heavily towards a reliance on the price of the latter.
NBN Co chief executive Bill Morrow says the company, which is rolling out Australia's national broadband network, has an image problem, but has ruled out any imminent pricing changes.
New Zealand can offer its residents 1Gbps broadband plans for NZ$130 (A$120) a month because the access virtual circuit (AVC) charges are low, the ISP MyRepublic says.
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