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Pricing not to blame for low take-up of high speeds, NBN CEO says

Rohan Pearce | June 8, 2017
End users on the NBN are ‘gravitating to speeds that meet their needs,’ Bill Morrow said today.

Earlier this year Singapore-headquartered RSP MyRepublic entered Australia saying that it would attempt to bring gigabit broadband to end users over the network but the RSP has argued that NBN's pricing scheme is not conducive to high-speed offerings.

The AVC and CVC pricing constructs "would suggest that a retail product based on the NBN 1Gbps speed tier would retail over $300 per month, compared to MyRepublic's retail pricing of $49.99 (SGD) per month in Singapore and $129.99 (NZD) per month in New Zealand," MyRepublic argued in March.

Morrow said that "although installing gigabit speeds today for everybody would be a significant investment with a questionable rate of return," the technologies that NBN is rolling out "each have a very clear upgrade path into the future".

"Ongoing advancements in technology and content mean that the demand for faster internet will continue to grow in the years to come and our business model allows for this," the CEO said.

"We are trialling the technologies we will use. And we have a close eye on the market for new entrants and innovations in this space. We've built the network so it's readily scalable.And, as the need grows, we will put those technologies in place."

Those upgrades will be funded by NBN, not the government, Morrow said.

 

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