WHOLESALE prices for the national broadband network will begin at $24 a month for a basic 12 megabits per second connection.

That rate, which will be charged to internet retailers like Telstra, will rise to $38 per month for a 100 megabit per second connection.

The prices have already come under attack from the Opposition, with Federal Opposition communications spokesman Malcolm Turnbull saying the plan showed "no nirvana for cheaper broadband".

The Federal Government today released its business plan for the broadband network, which it expects to be completed by 2021.

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Technology - Product Finder

At a press conference with senior Government ministers in Canberra, Prime Minister Julia Gillard said the business case showed the NBN would be built for less than originally thought.

"It will also be profitable, meaning taxpayers' investment in the NBN will be returned with interest, while uniform wholesale prices will also be achieved," she said.

"Those prices will be affordable for consumers."

A summary of the NBN Co corporate plan released earlier today showed the company expected a rate of 7 per cent per annum on the network.

That figure was based on the assumption that 70 per cent of premises hooked up to the fibre-optic network would use it.

Another 12 per cent of premises were expected to be unoccupied, 13 per cent would use wireless and 5 per cent would use other fixed-line services, NBN Co said.

The broadband network will see 93 per cent of Australian premises connected to high-speed fibre-optic cables offering speeds of up to 1 gigabit per second.

Of the remaining 7 per cent of premises, 4 per cent will get wireless internet services and 3 per cent will get satellite, with speeds of up to 12 megabits per second.

NBN Co said the fibre-optic network would be rolled out to 13 million premises by 2021.

It's 'no nirvana' - Opposition

Restating the Coalition's opposition to the $35.9 billion NBN, Mr Turnbull attacked the business plan released by the government, saying it was "not really a business plan".

"This has just got summary financials," he said.

Mr Turnbull said the price of the basic plan was comparable with what was currently available on the market.

"It's supposed to deliver universal and affordable broadband, and yet the broadband price that they've talked about today ... is comparable, it is certainly no cheaper than many comparable prices for 12 megabits per second for broadband ADSL2+," he said.

"This is no nirvana for cheaper broadband for Australians."

Deal with Telstra

The predictions and plans contained in the business case are dependent on what NBN chief Mike Quigley described as the "consummation" of the deal between NBN Co and Telstra.

Mr Quigley said discussions with the nation's largest telecommunications provider would continue throughout the Christmas break.

"I spoke with (Telstra boss) David Thodey this morning," Mr Quigley said today.

Mr Quigley described as "conservative" the assumptions on future growth made in the business plan.

"The growth in demand for speeds will be considerably lower than the extrapolation of increasing speeds implied by the history of internet access technologies," the plan said.

The facts

TOTAL capital expenditure cost $35.9 billion.

GOVERNMENT investment $27.5 billion, paid back with a return over the life of the project.

NBN expected rate of return 7 per cent.

NBN to raise $13.4 billion from capital markets from 2015.

BASIC connection to cost $24 per month for 12 megabits per second (mbps) download, one mbps upload.

NBN assumptions based on 70 per cent take-up of service, estimating 12 per cent of premises being unoccupied, 13 per cent using wireless products and five per cent using existing fixed line networks.

NBN will connect 93 per cent of homes, schools and workplaces with speeds up to one gigabit per second.

The network will cover 4 per cent of premises with a wireless services and 3 per cent by satellite with speeds up to 12mbps.

ANNUAL revenue forecast at $5.8 billion in 2021, $7.6 billion in 2025.

NETWORK construction to take nine and a half years with rollout peak of 5900 premises a day during construction.


Read more: http://www.news.com.au/technology/government-releases-business-case-for-national-broadband-network/story-e6frfro0-1225973848724#ixzz18eY22Goe

Quote:


from your article

The NBN wholesale price includes voice services..so the cost of home phone line rental and call costs will disappear 
Strap yourselves in people..we are finally leaving Howards 1950's America where it belongs..in the past 

All the costing has been on  BANDWIDTH. what arae the download limits? no one has even mentioned it. you can get a very cheap ADLS2+ connection now with a 300Mb limit which is as good useless. most people have a 20-50Gb limit. so what are the NBN's limits. Bandwidth is good, Capacity is far more important.

Does anyone know??

Quote:


come one people! Use your brains!!! this can only happen if they have a computer - and most dont. It can only occur if there are online medical assistance services already in place - and there arent. And it could already occur on the current ADSL 2+ services available.

are you all so dumb that you swallow the hype and the spin without a single rational thought??

There may be many thinggs to support an NBN. THIS ISNT ONE OF THEM.

longweekend58 wrote on Dec 21^st, 2010 at 10:25am:


What crapp get outta bed turn on PC ring doc  Hang on for 30min
on hold Email  urine sample , take your own blood sample Email that
IF you can do that you dont need a doctor

Quote:


Capacity on the NBN is sold to retailers without download limits - unlike the current arrangement that Telstra uses for sales using its copper network.

At a guess, download limits will still be around for a while, but it won't take long for retailers to do away with them.

Kat wrote on Dec 21^st, 2010 at 7:45pm:


It IS an important question - I remember raising it months ago.

And someone with some nous should ask Conroy and Gillard the question.

But I think you can make too much of it.

Some ISPs are currently in a race to offer almost unlimited downloads, for less $$$ than Bigpond charges for a small download limit.

I think you should read carefully what life_goes_on said in his contribution. Obviously the ISPs will try it on at first, but I don't doubt the download limits will eventually be very generous.

There is also the possibility that the NBN will mandate more generous provisions.