The National Broadband Network (NBN) is the subject of promises from the government that consumers will pay comparable prices to current day ADSL2+ and phone service bundles in order to access entry level NBN based services, and that NBN based retail pricing will be nationally uniform.

Unfortunately, a number of pressure points in the wholesale pricing model exist which will make these promises (from the government) untenable in practice, unless serious issues with the underlying pricing model are addressed by NBNCo and the ACCC.

This post elaborates on some of the relevant issues that serve to place upward pressure on NBN based retail pricing in general and even more pressure upon retail pricing in regional areas in particular.

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Recently, federal communications Minister Senator Stephen Conroy has again made some incorrect statements about my proposed improvements to the NBNCo wholesale cost access model.

The comments concerned are reported here:

http://www.zdnet.com.au/hackett-s-nbn-rejig-costs-customers-conroy-339312918.htm

Those reported comments (if accurate) contain a variety of statements about my proposals that are misleading in some cases, and entirely wrong in others.

In an effort to correct the record (again), I will take a look at the statements attributed to Senator Conroy and provide correction and comment about each. (more…)

Last week, I stood up at a conference and described the NBN’s pricing model as “insane” for small Internet service providers. I said that the NBN’s pricing model would only be feasible for ISPs with desires for national coverage if those ISPs already have more than 250,000 customers – specifically limiting the potential directly attached national customer base for the NBN to little more than Telstra, Optus, TPG, iiNet and Internode. (more…)