Price could kill the NBN, not the speed

NBN detractors only question whether it’ll deliver the speed we demand. It’s less of an issue than the question of price.

For some time in the industry the question of CVC charges has been the biggest bone of contention. This is the price a service provider pays to connect their own network to the NBN access network. It’s a flat rate, per Mbps charge. The more your users consume at peak time, the higher the charge.

As we’ve heard, in recent weeks, peak time capacity has escalated since the arrival of Netflix. As iiNet CTO Mark Dioguardi revealed at this week’s CommsDay Summit in Sydney, the content provider now accounts for 25 percent of their traffic.

This demand is only set to increase as more people watch TV online. Yet, whilst capacity demand increases exponentially, NBNCo’s CVC charges apply a flate rate per Mbps. As Bevan Slattery points out, the government needs to swallow some cost and reduce the CVC charge to about $1 per mbps.

Either that, or the government faces an angry public, confronted with the most expensive broadband in the world.

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