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Tuesday, December 1, 2009

The NBN: Lower Prices vs Higher Speeds

Today's Australian reports that the general public would prefer a compromise between the price they pay for the increased speed in FTTH connections and the speed. It says that "for most people, the prices for access to the fibre network would have to be comparable to what already exists in the marketplace today -- at speeds that would only be modestly higher".

This is completely stupid, most people would love to have 100Mb/s speeds and, as the actual infrastructure is being payed for by taxes, there won't be a huge increase in prices.  The article also says that there will be a push to "encourage people to make the switch to fibre and then only slowly increase speeds and prices as consumer demand grew over time". The demand when this network goes live around 2020 will be huge initially and therefore if they are to increase speeds and prices as demand grows they we will probably end up with at least 80Mb/s from day one and prices around $89.99/month. Where could any incrase go after that? Nowhere.
Anyone with a brain can clearly see that when this network is rolled out, prices will not increase drammatically, as hinted in the article, because the infrastructure has been paid for so there will only be access fees which will only be marginally higher than prices today. Most peole would be happy to pay $20-$30 more than now to get an 80% or more speed increase.

The whole NBN plan is in a shambles and people who follow tech, like me, are gettign sick of the talk and just wanting teh network to be built and running on schedule, givign Australians faster internet speeds comparable to those overseas.

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