NBN cost could rise on ACCC ruling: report

The construction cost of the national broadband network could rise by as much as $2 billion dollars under proposed new prices for telcos that use Telstra Corporation Ltd's fixed-line assets, according to The Australian Financial Review.

The Australian Competition and Consumer Commission (ACCC) released draft access and line rental prices for rival telcos that provide voice, fax and broadband products over Telstra's copper network.

Companies will be charged $20 per month to supply telephone services, down from the current $25.57 in monthly wholesale line rental for homes, and $26.93 for businesses under the new pricing regime.

The ruling means that the NBN Co may be forced to raise the price of its broadband or charge lower wholesale prices than previously forecast, the AFR reports.

"The $11 billion deal (with the NBN Co) was looking good for Telstra," RBS analyst Ian Martin told the AFR. "Maybe the NBN Co will try to negotiate it down now."

The proposed new price for line-sharing services, allowing companies to supply ADSL services, is the same as the current $2.50 per month.

The price to access Telstra's copper wire running from the telephone exchange to the home in non-CBD metropolitan areas would fall from $6.60 to $6.50.

The proposed changes are intended to apply for four years from January 1, 2011, and are now open to industry feedback.

The telco industry broadly supports the new method adopted by the competition watchdog to determine these new prices, ACCC chairman Graeme Samuel said.

"The ACCC recognises that a four-year pricing guidance period will provide a level of certainty which is essential to support commercial negotiations in the industry and to continue to support the competitive supply and rollout of telecommunications services to consumers," he said in a statement.

Optus welcomed the change in pricing methods, saying it reflects the costs Telstra actually incurs supplying services on its copper network.

However, general manager of regulatory affairs Andrew Sheridan said the change did not appear to have resulted in reductions to access charges.

"Optus will examine the detailed application of the ACCC's new methodology to understand why these price changes have not eventuated," he said.

Telstra managing director of public policy and communications David Quilty said he disagreed with the changes to monthly line rental prices.

"Telstra is committed to regulatory certainty but the draft prices would mean a 24 per cent reduction in wholesale line rental prices, which undermines price stability both now and over the long-term," he said.


http://www.businessspectator.com.au/bs.nsf/Article/ACCC-calls-for-fixed-line-pri...

In case you hadn't noticed, I HAVE made my argument for the NBN.

Both personal and business.

And you're the judge for its' "compellingness"? Sure.

longweekend58 wrote on Sep 20^th, 2010 at 11:10am:





It's got nothing to DO with Howard
More to do with the PRIVATISED Telstra who have ZERO interst in servicing no-profit viability regions

This is the MAJOR case against leaving vital infrastructure in the care of private enterprise

What was Howard's plan ?
To build an entire new network of telephone exchanges across the country, with a maximum of 6km from one to the next ?

(3km from an exchange, the outer impedence range from an exchange to access ADSL)

buzzanddidj wrote on Sep 20^th, 2010 at 11:45am:


Liek it or not, the reason YOU dont have reliable ADSL2+ is because Rudd cancelled Howards contract which would have been completed by now. it is a common problem in business that by trying to attempt TOO MUCH at one time, you end up with nothing at all. this is what wil happen with this. 93% of the country could have ADLS NOW but doesnt because Rudd wanted a new all-singing project that we cant afford and will take ten years to build.

mellie wrote on Sep 20^th, 2010 at 11:32am:





Tassie NBN running under budget
August 19th, 2010

Communications Minister Stephen Conroy said last night on Lateline that the Tasmanian portion of the National Broadband Network (NBN) had come in 10 per cent under budget.

Conroy made the statement in answer to a question on whether it was likely that the $43 billion price tag was likely to balloon. This had been preceded by Shadow Communications Minister Tony Smith presenting his party's policy as being "responsible, affordable and deliverable" and claiming that the NBN could cost even more than the $43 billion total (around $27 billion of which is set to be provided by government coffers).

"That is the minimum cost if everything goes right over an eight-year period," Smith had said.

Conroy answered that so far everything was running to plan.

"We have delivered the Tasmanian project on time and 10 per cent under budget," he said, adding that the 6000km backhaul backbone being rolled out by Nextgen Networks was also on time and sitting on budget.
When asked if he could guarantee that the budget would not blow out, he said that the NBN was a project that replicated itself over and over, each time with improvements in efficiency.

"We are under budget on the build so far, we've got some of the world's leading experts in technology in rolling out this network," he said.

According to Conroy, the $11 billion Telstra deal would cut the cost, quoting experts who had said it would lower the overall figure of the network by $4 to $6 billion.


http://www.zdnet.com.au/tassie-nbn-running-under-budget-conroy-339305348.htm

Please delete wrote on Sep 20^th, 2010 at 12:02pm:


no idea. do you? you can get symettrical ADLS for business now.