|
 
Joint press release from Internode and iiNet
The stated objective of FTTN is to provide 98% of
Australians with internet speeds of 12 Megabits per second. The hard question most of my friends ask me when the subject
of FTTN is raised, is: "OK, but how much am I
going to have to pay for it?".
The answer, of course, is nobody really knows, because of
the misinformation available on the subject of broadband - but I'd suggest that
looking at 2008 prices for 12 Megabits per second (Mbps) internet access is a
good start.
Today, $50 a month can buy you a great ADSL2+ service from a
number of ISPs with their own infrastructure. [1]
The market offerings are many and varied and there are a number of options for
consideration, but let's stick to internet broadband access.
Can $50 get me 12Mbps? My oath it can. ADSL2+ reportedly offers customers access speeds up to 24Mbps,
given the right conditions (some even report speeds above that). iiNet have released
actual speed data previously[2]
- indicating measured speeds on
customers connected to their ADSL2+ network.
New surveys conducted
in 2008 support the early results. Both iiNet and Internode measured the speeds
experienced by more than 16,000 customers connected to their networks.
Combining the results of these two ADSL2+ surveys indicates that half of all
their customers[3]
regularly enjoy download speeds of 11.9Mbps. In addition, 80% of customers,
today have access to speeds about 6 Megabits per second.
So, the answer to the question of how much should customers
pay, seems to be fairly straightforward - They should pay no more tomorrow than
they pay today.
This answer, though, begs further questions. Like...
"If I can get 12Mbps
for $50 a month today, why does Australia need to spend another $10 billion,
with $4.7 billion coming from the public purse?"
That's a good question and given iiNet and Internode's
results, there's a strong argument that public funds should be focussed on
areas that can't get the required speeds, not spent duplicating or replacing
services already delivering them.
The legacy of seven or eight years of Telstra offering no
more than 1.5 Megabits per second to
consumers, the Bureau of Statistics data (http://www.abs.gov.au/ausstats/abs@.nsf/mf/8153.0/)
shows that more than 50% of DSL customers currently elect to use a broadband
speed below 1.5 Megabits per second.
Clearly more than half of existing DSL customers are either
constrained by price or - neither want nor need higher speeds. It is clear to
me then, that any future replacement broadband network would need to offer
lower prices than the existing network, to avoid the take-up of high speed
broadband services actually going backwards, not forwards, in the future.
Another question might be...
"Is the FTTN going to
provide me with the option of a $50 plan?"
This looks being one of those ‘That depends..' answers. Telstra
doesn't seem to think that'll be possible. Details of an FTTN proposal from
Telstra were not published by Telstra, however, media articles have suggested wholesale
access charges from Telstra ranging from $58 (512kbps) to ‘well over' $100 per
access per month[4].
Let's just say that again -
Australia invests $10 billion so that customers will have to pay more to
buy the same services they can get today... yeah, right.
The alternative to Telstra's offer is provided by G9's FANOC.
Their undertaking to government certainly indicated[5]
an access cost of less than $27 for 12Mbps, so $50 retail looks possible, but
why build that FTTN in place where the service is already available at that
price?
Questions, questions, questions.
Some facts are available, though. In 2008, half of Internode
and iiNet's Sydney customers are getting 12Mbps and only paying around $50 a
month for it. There is a poultice of suppliers in the market and an array of
choice. That doesn't look like a problem needing a $10 billion solution.
A new network sponsored by the Australian government has to
improve on today's offerings. Not duplicate it.
·
Improve on the retail price;
·
Improve on availability;
·
Improve on reach;
·
Improve on choice.
They must ensure the cash goes to delivering services to the
bush, eliminating RIMs and pair-gain systems in cities, making sure those
missing out today get the 12 Mbps already possible. Ensuring customers have a
choice of suppliers, wherever they are.
Internode and iiNet don't have the political influence or
financial clout of some of the other players in this industry, but they know if
you focus on the customer and service delivery, there's a lot that can be done for
consumers right now. In 2008. They know, they're doing it.
The ‘heat map' shown above is available for download at
http://www.iinet.net.au/iinetwork/bb2_speeds.html
and
http://www.internode.on.net/heatmap/
iiNet is one of
Australia's Internet service pioneers, having begun in Western Australia in
1993. Now Australia's third largest ISP, iiNet has built a reputation for providing
innovative, quality and value Internet products, and friendly 24-hour customer
service and support.
For further information:
Please contact Stephen Dalby, Chief Regulatory Officer, iiNet Ph: (08) 9213 1371
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
Internode is a first tier
IP carrier committed to using broadband technology to redefine the national
telecommunications environment. The Australian-owned company is a trailblazer
that delivers broadband services to individuals and businesses throughout
Australia.
For media assistance, call John Harris on (08) 8431 4000 or
email
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
[1]
E.g. iiNet "Naked Home 1" ; Internode "Home Extreme Starter";
[2]
See The
Myth of Fibre
[3]
Using ADSL2+ modems and speed settings
[4]
The Australian, June 8, 2007. "Telstra
ultimatum on fibre" http://www.australianit.news.com.au/story/0,24897,21868192-16123,00.html
[5]
Schedule 3 pricing model, FANOC SAU.
|
