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Thread: NBN Co slashes wholesale prices

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    Default NBN Co slashes wholesale prices

    This should be good for us all.........................



    The National Broadband Network will cut its wholesale prices to encourage internet users to upgrade to faster connections, in a desperate bid to restore confidence in the troubled project.

    In the biggest concession yet that its model of selling expensive “bandwidth” is flawed, NBN Co said it would offer telcos new top-speed NBN packages at discounts of up to 27 per cent.
    The moves mark an attempt to unclog the bottlenecks caused by Telstra, Optus, TPG and others who are not buying enough bandwidth to prevent internet speeds from plunging at peak times, such as after 5pm on weekdays.
    NBN Co hopes the telco discount offers, which it denies will hurt its bottom line, will be passed on to customers who will in turn pay for faster NBN packages.
    More than 80 per cent of people are currently opting to buy the NBN’s two lowest-speed packages, meaning they are achieving speeds as low as, or in some cases even lower than, what was available before the NBN was built.

    • READ MORE


    NBN Co chief executive Bill Morrow said yesterday’s moves were designed to “unleash the power of the NBN”, with just 16 per cent of users buying the two top NBN speed packages when those speeds were available to the “vast majority” of users.
    “Australians are funding this world-leading infrastructure and the majority of them, as end users, are purchasing plans that give them no better — and in some cases lower — speeds than they can get from their legacy network,” Mr Morrow said yesterday.

    During peak times, internet speeds have slumped as people use the internet to stream video #services such as Netflix and Stan on different devices at the same time.
    NBN Co currently sells to telcos four NBN connection plans which are then sold to consumers: 12 megabits per second, 25Mbps, 50Mbps and 100Mbps.

    In addition, telcos are required to buy enough bandwidth — or CVC — which ensures the internet “pipe” is wide enough to allow those speeds to be achieved by homes at peak times. In a bid to recover the cost of the $49 billion network, NBN Co placed a very high price on CVC comparative to other broadband network providers internationally.

    Amid a “land grab” to sign up as many new users as possible, telcos have failed to buy enough bandwidth, causing massive congestion at peak times. Yesterday’s announcement aims to sidestep the bandwidth problem by bundling CVC with 50Mbps and 100Mbps packages, effectively forcing telcos to buy enough — provided they offer the packages to consumers and they buy them.

    NBN Co said the new 50Mbps package would come with double the average bandwidth purchased by telcos and would wholesale for $45 a connection, 27 per cent less than the $61 it would currently cost telcos to buy a 50Mbps connection with the same CVC. The new 100Mbps package would come with 2½ times the current average CVC and would cost $65, compared with $72 currently, a 10 per cent discount.

    Industry experts said the 50Mbps package would likely sell to consumers for about $70 to $80 a month.

    The new packages would be made available between April and June next year.

    NBN Co said that, in the interim, from today, telcos could access a promotion giving them, for free, 50 per cent more CVC than they already paid for. Also telcos would be able to buy the existing 50Mbps package, which NBN wholesales for $34 a month, for the price of the 25Mbps package, between $27 and $30 a month.

    Because the NBN will be built regardless, it doesn’t cost the NBN any more to provide free or faster services. However, doing so could see it lose revenue. Mr Morrow said NBN Co was on track to meet its 2020 completion target and its “peak drawdown” of funding of $49bn, and the changes would not hurt its bottom line.

    Telco industry veteran Damien Ivereigh, chief executive of Launtel, said the moves could underpin NBN Co’s revenues because people would be offered a new quality product with a point of difference: guaranteed minimum bandwidth. “Where the program is suffering is the telcos are getting away with selling very poor products based purely on price,” he said.

    “This will now allow the telcos to say ‘this is the new-beaut product you have heard about’ and many people will be willing to pay more than the 50-odd dollars a month they were paying for the connection which didn’t work.”
    He said there was “so much negative press” surrounding the NBN that people were willing to pay for a product that could guarantee higher minimum speeds.

    NBN users who have previously discussed problems with the network with The Australian would welcome any improvements but they were not holding their breath.
    Benjamin Stewart, from the NSW central coast, said the NBN had been a “frustrating mess” and he had experienced more internet outages “in the last six months that I had in the last six years”.
    “Cheaper is always better but will (telcos) pass on the savings? Who knows?” he said.
    Jim Kelly, who operates Brisbane Cruises, said his small business continued to have intermittent problems with its NBN connection and, as a result, its phone system. “Any improvement would be good but we’ll wait and see,” he said.



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    I read somewhere that at least 3 providers immediately dropped prices or offered a higher speed on an existing plan at the same price.

    Which is pretty good if you can double your speed from 25 to 50 free of charge.

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    Quote Originally Posted by admin View Post
    NBN Co currently sells to telcos four NBN connection plans which are then sold to consumers: 12 megabits per second, 25Mbps, 50Mbps and 100Mbps.

    In addition, telcos are required to buy enough bandwidth — or CVC — which ensures the internet “pipe” is wide enough to allow those speeds to be achieved by homes at peak times.
    Hmm!
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    Quote Originally Posted by Guiseppe View Post
    Hmm!

    ????


    Nothing new there. If you dont buy sufficient bandwidth, your customers connections slow down.

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    Internode quietly dropped the 25Mb NBN plan that I'm on and reduced the price of the 50Mb plan to be the same as I'm paying for 25Mb. I found out about this through the grapevine - no communication from Internode and no automatic upgrade. If you're with Internode, you have to apply online to upgrade from 25Mb to 50Mb... even though there is no cost involved.

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    It appears this is also applying to us (Tiny) who is using the NBN via the Skymuster satellite via different providers.
    I was recently given a 15GB increase in my PEAK time usage (now 45GB per month) as well as (25 GB extra??) in the OFF Peak at the same rate.
    The Off peak doesnt interest me at all as its between 0100 hrs and 0700 hrs so its a total waste of money.

    My question to the the NBN/Skymuster system is if they have dropped their rates, why cant we use what we pay for WHEN we want to instead of being split into Peak/Off Peak times when NO ISP/NBN does this for either Cable/Fibre or wireless??
    Last edited by gordon_s1942; 15-12-17 at 04:02 PM.
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    Quote Originally Posted by gordon_s1942 View Post
    My question to the the NBN/Skymuster system is if they have dropped their rates, why cant we use what we pay for WHEN we want to instead of being split into Peak/Off Peak times when NO ISP/NBN does this for either Cable/Fibre or wireless??
    They make a change, all this has only literally just happened 2 days ago. Only 3 or so providers have officially changed their plan and it was basically overnight after the announcement. You could try sending them an email and asking them if they are going to sharpen the pencil on their offerings. As shred mentioned with Internode, they wont give it unless you ask.

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    its been more than a month for me and I think longer for Tiny but it wont hurt to ring.
    I stand unequivicably behind everything I say , I just dont ever remember saying it !!

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    You never know mate, on top of your data increase you could end up with another one or even a price reduction.

    Like many things these days, they wont give you anything unless you ask, such as electricity deals etc. I would give them a ring, and make sure you let them know that you are aware of the better deal NBN Co are giving on wholesale prices.

    I can understand your frustration with the peak/off peak thing, personally it would give me the shits. Having said that, I wonder if this deal will apply to Sky Muster services as there are always going to be bandwidth limitations in relation to satellite internet. Oh well, there is always a price discount if not. I'm sure you know the old saying, "nothing ventured, nothing gained". Let us know if you do get something out of them, I am sure several will be interested to see if Satellite also gets the deal.

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    @Gordon. The answer is of course that despite all the grand promises those on Satellite have a second class service that doesn't look like changing anytime soon. It makes a mockery of the promises of fast internet to everyone when they offer such limited data.

    I'm not holding my breath for things to get better. The Government has build this at enormous cost when private industry would not. It has created a monopoly! And it wants to sell that monopoly to a private buyer! But of course it needs to show a good profit to do so. Fibre is a good technology, but they've stuffed it up. Not everyone needs it, and Australia is a huge country. And they haven't made the monopoly wide enough. Many people are going to choose Wireless, and Wireless is going to get a lot cheaper. Telstra is not spending huge amounts on 5G because it has surplus funds to get rid of. My prediction is that wireless is going to take a significant share of the market. As will third party fixed line services if they can get away with it. The Australian had stories about companies providing fixed broadband to residential flat buildings outside of the VPN, and a fibre network owned by Gold Coast City Council following the tram line, which the Council plans to use for the Commonwealth Games and then to provide broadband access, perhaps through an ISP. Even if only Wireless is allowed to compete, it it takes any substantial share the government can forget about both a good return and a private sale. Yet the Government is desperate to keep it out of the budget. Eventually it will probably be forced to retain it and abandon hopes of a high return, hopefully running it as some sort of public utility at costs competitive with similar overseas offerings. Probably better to bite the bullet now, but its not going to happen! I suppose they could choose to ban all competition, which would likely end up stifling for Australians the very opportunities the NBN claims it will provide.

    The current changes are one step in recognising reality. I think there are many more to follow.

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    Quote Originally Posted by shred View Post
    I found out about this through the grapevine - no communication from Internode and no automatic upgrade. If you're with Internode, you have to apply online to upgrade from 25Mb to 50Mb... even though there is no cost involved.
    Are you on a contract or month to month? Those on a contract shouldn’t expect an automatic reduction in cost during any contract period, although if the point is pushed with providers you would likely find most would change your contractual obligations to the lesser amount.

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    Quote Originally Posted by peteramjet View Post
    Are you on a contract or month to month? Those on a contract shouldn’t expect an automatic reduction in cost during any contract period, although if the point is pushed with providers you would likely find most would change your contractual obligations to the lesser amount.
    It appears (at least to us on Skymuster) that there are NO contracts but saying that, some are putting people on contracts but its to pay for the Modem/Router if you need one.
    I am on Month to Month, sorry about that.

    The NBN supplied and installed the dish and the Modem at NO cost to me but because I didnt know if a Router I was using was compatible with the Modem (had problems before with that) I bought it instead of going the 'Contract' option.
    I am pretty sure that the NBN wireless system is not the same as using Telstra or Optus Mobile Network as all on different bands and you have to be registered to use the system.
    The last I heard was only 2000 customers would be serviced by Wireless, over that was Cable/Fibre, and under that number was Satellite.
    Last edited by gordon_s1942; 15-12-17 at 07:30 PM.
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    I was reading some comments elsewhere that suggest that these new deals will make the 25 and 50 speed packages almost the same from a wholesale price point of view (and the 50 comes with additional bandwidth), so if you are on FTTN or FTTB you realistically should be able to push your provider to upgrade you from 25 to 50 for nothing.

    Many won't be doing that though until April.

    Gordon, I read that these changes exclude NBN fixed wireless, so I dont like your chances in regards to Satellite but dont let it put you off asking them if there is a better deal (if you don't want to call them now, leave it until April)

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    Quote Originally Posted by peteramjet View Post
    Are you on a contract or month to month?
    No, I’m not on a contract.

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    Quote Originally Posted by admin View Post
    This should be good for us all.........................



    The National Broadband Network will cut its wholesale prices to encourage internet users to upgrade to faster connections, in a desperate bid to restore confidence in the troubled project.

    In the biggest concession yet that its model of selling expensive “bandwidth” is flawed, NBN Co said it would offer telcos new top-speed NBN packages at discounts of up to 27 per cent.
    The moves mark an attempt to unclog the bottlenecks caused by Telstra, Optus, TPG and others who are not buying enough bandwidth to prevent internet speeds from plunging at peak times, such as after 5pm on weekdays.
    NBN Co hopes the telco discount offers, which it denies will hurt its bottom line, will be passed on to customers who will in turn pay for faster NBN packages.
    More than 80 per cent of people are currently opting to buy the NBN’s two lowest-speed packages, meaning they are achieving speeds as low as, or in some cases even lower than, what was available before the NBN was built.

    • READ MORE


    NBN Co chief executive Bill Morrow said yesterday’s moves were designed to “unleash the power of the NBN”, with just 16 per cent of users buying the two top NBN speed packages when those speeds were available to the “vast majority” of users.
    “Australians are funding this world-leading infrastructure and the majority of them, as end users, are purchasing plans that give them no better — and in some cases lower — speeds than they can get from their legacy network,” Mr Morrow said yesterday.

    During peak times, internet speeds have slumped as people use the internet to stream video #services such as Netflix and Stan on different devices at the same time.
    NBN Co currently sells to telcos four NBN connection plans which are then sold to consumers: 12 megabits per second, 25Mbps, 50Mbps and 100Mbps.

    In addition, telcos are required to buy enough bandwidth — or CVC — which ensures the internet “pipe” is wide enough to allow those speeds to be achieved by homes at peak times. In a bid to recover the cost of the $49 billion network, NBN Co placed a very high price on CVC comparative to other broadband network providers internationally.

    Amid a “land grab” to sign up as many new users as possible, telcos have failed to buy enough bandwidth, causing massive congestion at peak times. Yesterday’s announcement aims to sidestep the bandwidth problem by bundling CVC with 50Mbps and 100Mbps packages, effectively forcing telcos to buy enough — provided they offer the packages to consumers and they buy them.

    NBN Co said the new 50Mbps package would come with double the average bandwidth purchased by telcos and would wholesale for $45 a connection, 27 per cent less than the $61 it would currently cost telcos to buy a 50Mbps connection with the same CVC. The new 100Mbps package would come with 2½ times the current average CVC and would cost $65, compared with $72 currently, a 10 per cent discount.

    Industry experts said the 50Mbps package would likely sell to consumers for about $70 to $80 a month.

    The new packages would be made available between April and June next year.

    NBN Co said that, in the interim, from today, telcos could access a promotion giving them, for free, 50 per cent more CVC than they already paid for. Also telcos would be able to buy the existing 50Mbps package, which NBN wholesales for $34 a month, for the price of the 25Mbps package, between $27 and $30 a month.

    Because the NBN will be built regardless, it doesn’t cost the NBN any more to provide free or faster services. However, doing so could see it lose revenue. Mr Morrow said NBN Co was on track to meet its 2020 completion target and its “peak drawdown” of funding of $49bn, and the changes would not hurt its bottom line.

    Telco industry veteran Damien Ivereigh, chief executive of Launtel, said the moves could underpin NBN Co’s revenues because people would be offered a new quality product with a point of difference: guaranteed minimum bandwidth. “Where the program is suffering is the telcos are getting away with selling very poor products based purely on price,” he said.

    “This will now allow the telcos to say ‘this is the new-beaut product you have heard about’ and many people will be willing to pay more than the 50-odd dollars a month they were paying for the connection which didn’t work.”
    He said there was “so much negative press” surrounding the NBN that people were willing to pay for a product that could guarantee higher minimum speeds.

    NBN users who have previously discussed problems with the network with The Australian would welcome any improvements but they were not holding their breath.
    Benjamin Stewart, from the NSW central coast, said the NBN had been a “frustrating mess” and he had experienced more internet outages “in the last six months that I had in the last six years”.
    “Cheaper is always better but will (telcos) pass on the savings? Who knows?” he said.
    Jim Kelly, who operates Brisbane Cruises, said his small business continued to have intermittent problems with its NBN connection and, as a result, its phone system. “Any improvement would be good but we’ll wait and see,” he said.

    Am I reading that correctly, for a 100Mbps NBN connection the ISP buys 2.5Mbps?

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    Yes. This is more than adequate for traditional usage. Most of the time the average Internet user who is browsing, emailing etc is NOT using ANY bandwidth. Even the average high bandwidth user is not doing anything bandwidth intensive a lot of the time. Also, most users are not active for the majority of the day.

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