Understanding the Implications and Nuances of NBN Co Wholesale Pricing and POI Locations
November 2011
Over the past few months there's been a lot of comment on NBN pricing, and in particular the impact of Connectivity Virtual Circuit (CVC) pricing - ultimately resulting in NBN Co offering a discount on CVCs during the ramp up period. But, will this pricing change provide an effective mechanism for lowering the barriers to entry for RSPs, thus enabling strong retail competition?
To answer this and other questions, Market Clarity has designed an NBN Bandwidth and Price Scenario Model,which was used as the basis to illustrate a range of market scenarios. This analysis has drawn attention to several issues which ISPs and policy makers may not be aware of from published information, such as:
- The impact of contention ratios on ISP costs, and ultimately retail prices - Will the deployment of the NBN result in higher contention ratios than end-users are accustomed to?
- The correlation of CVC pricing to ISP costs - Was CVC pricing the big problem that many in the industry claimed? Will the recent price changes resolve these issues?
- The correlation of NBN Co purchasing rules and wholesale pricing on an ISP's decision to offer higher speed plans - Are ISPs likely to offer top-end NBN plans?
- What are the pricing and deployment impacts of the ACCC's decision to have 121 NBN Co POIs?
- The ways in which NBN Co purchasing rules might constrain the retail services on offer - For instance, does it make sense to offer services at all the POIs?
The report contains 2 maps and 16 Graphs illustrating a range of market scenarios, and is based on Market Clarity’s presentation at the Communications and Policy Research Forum (November 2011).
Understanding the Implications and Nuances of NBN Co Wholesale Pricing and POI Locations is a 30-page presentation-style report costing $2,500.00 plus GST.
| NBN Pricing Scenarios and Maps |
|---|
| 1. NBN Co Pricing Construct |
| 2. NBN Co AVC + NNI Pricing |
| 3. NBN Co CVC Pricing |
| 4. About the NBN Pricing Scenarios: Modelling service speeds up to 100/40 Mbps |
| 5. Figure showing NBN Costs: 100 Premises Connected All POIs (50:1 Contention) at 10%, 20%, 50% and 100% Market Share |
| 6. Figure showing NBN Costs: 100 Premises Connected All POIs (100:1 Contention) at 10%, 20%, 50% and 100% Market Share |
| 7. Figure showing NBN Costs: 1,000 Premises Connected All POIs (50:1 Contention) at 10%, 20%, 50% and 100% Market Share |
| 8. Figure showing NBN Costs: 1,000 Premises Connected All POIs (100:1 Contention) at 10%, 20%, 50% and 100% Market Share |
| 9. Figure showing NBN Costs: 10,000 Premises Connected All POIs (50:1 Contention) at 10%, 20%, 50% and 100% Market Share |
| 10.Figure showing NBN Costs: 10,000 Premises Connected All POIs (100:1 Contention) at 10%, 20%, 50% and 100% Market Share |
| 11.Figure showing NBN Costs: 10% Premises Connected All POIs (50:1 Contention) at 10%, 20%, 50% and 100% Market Share |
| 12.Figure showing NBN Costs: 10% Premises Connected All POIs (100:1 Contention) at 10%, 20%, 50% and 100% Market Share |
| 13.Figure showing Average NBN Costs Using Bandwidth Weighting: POI Scenarios (100:1 Contention) at 10%, 20%, 50% and 100% Market Share |
| 14.Figure showing Average NBN Cost Spread (Modelled Scenarios 100:1 Contention) at 10%, 20%, 50% and 100% Market Share |
| 15.Figure showing Average NBN Costs Using Bandwidth Weighting: POI Scenarios (50:1 Contention) at 10%, 20%, 50% and 100% Market Share |
| 16.Figure showing Average NBN Cost Spread (Modelled Scenarios 50:1 Contention) at 10%, 20%, 50% and 100% Market Share |
| 17.Figure showing Average NBN Costs Using Bandwidth Weighting: POI Scenarios (100:1 and 50:1 Contention) at 10%, 20%, 50% and 100% Market Share |
| 18.Map of Australia with POI by POI Pricing: 10% NBN Penetration: 50:1 Contention Ratio - 10% Market Share |
| 19.Map of Australia with POI by POI Pricing: 10% NBN Penetration: 100:1 Contention Ratio - 10% Market Share |
| 20.Map of Australia with POI by POI Pricing: 30% NBN Penetration: 50:1 Contention Ratio - 10% Market Share |
| 21.Map of Australia with POI by POI Pricing: 30% NBN Penetration: 100:1 Contention Ratio - 10% Market Share |
| 22.Will Current BB Prices be Sustainable? Figure showing ADSL and HFC pricing in 2010 and 2011 |
| 23.Will Current BB Prices be Sustainable? Figure showing Average NBN Retail Pricing based on 50% Margin (on NBN Costs) at 50:1 Contention Ratio |
| 24.Will Current BB Prices be Sustainable? Figure showing Average NBN Retail Pricing based on 50% Margin (on NBN Costs) at 100:1 Contention Ratio |
The Presentation style report is delivered in Print and Search enabled Adobe PDF format.
Report Pricing
| Report Description | Report Cost (Ex GST) | GST | Total Cost |
|---|---|---|---|
| Understanding the Implications and Nuances of NBN Co Wholesale Pricing and POI Locations | $2,500.00 | $250.00 | $2,750.00 |
| Individual Maps or Graphs [PDF format] | $500.00 | $50.00 | $550.00 |
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