National Broadband Network

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Hence the need for the government to step in because it is not viable for the private sector to build the NBN in rural Australia.
i.e IT WAS NEVER GOING TO BE BUILT IN RURAL AUSTRALIA BY THE PRIVATE SECTOR.
The NBN pricing was a way around this hurdle. Based purely on cost/demand rural subscribers would ordinarily pay more (much more), but so that everyone gets access to the NBN metro folk effectively subsidise the rural NBN. An outcome that would NOT be possible in the private sector.

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No. And it wasn't going to be built by the private sector for the cities either.

Why? Too much capital spend for essentially the same type of speed for the city. Private sector could have just built a regional broadband with some smaller subsidies.

Now, I don't like subsidies, but I can understand there can be a need for them. Perhaps the government could have subsidised a regional broadband where private sector could have been given a small subsidy to make regional broadband viable. So, a 7-8% benefit to private sector who wouldn't have built the network otherwise.

But no. Why did this happen? See, the government originally had a 4.5 billion subsidy for Telstra to build the NBN. But then pollies said, how can we get more political capital out of it? So, they canned the subsidy, meaning they "reduced" the deficit by the subsidy amount (4.5 billion). Telstra would have paid for the rest of the construction costs otherwise.

Then, they created this behemoth of NBN, and gave it so many monopolistic revenues. Here's the thing. Losses by the NBN don't count as much annually, because it's a financial asset as they have loaned the entire capital to NBN. The suck is in because people will eventually have to cop the the losses the NBN has made.

At last count it has accumulated 8.3 billion dollars of losses. Way more than the original 4.5 billion dollars of subsidies. And it's going to come out of your tax dollars which could have been used elsewhere.

"The final cost of the Commonwealth's financing of NBN Co will not be known until NBN Co is privatised and the market places a value on the NBN," the report says. "Until then the Commonwealth will continue to bear an annual cost associated with its financing of NBN Co."

The report goes on to say that if the sale price of NBN Co is less than the cost of financing NBN Co, then the NBN would have "an enduring cost to the budget".

There is also a small risk (less than five per cent chance) that the Government could be forced to meet "contingent liabilities" in relation to the NBN rollout, totalling an amount of $15.5 billion as at 30 June 2016.


Read more at https://www.gizmodo.com.au/2016/12/...y-costing-the-government/#jpYGyrm4I1Hm0YqD.99
 
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On a separate point, read up on the crying HFC subscriber base (mostly people getting high speed via telstra using foxtel's cables). They used HFC to get 100MBPS or more.

Now, the speeds they get is less than 100MBPS even though they are on 100MBPS plans.
 

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On a separate point, read up on the crying HFC subscriber base (mostly people getting high speed via telstra using foxtel's cables). They used HFC to get 100MBPS or more.

Now, the speeds they get is less than 100MBPS even though they are on 100MBPS plans.
Its call congestion, and an old network that should have been replaced by a FTTP.

Also, if you purchase a 100MB/s plan, it doesn't mean you will get 100MB/S 24/7, its speeds upto 100MB/s.
 
Private sector could have just built a regional broadband with some smaller subsidies.

They could have, but they didn't and would never because the cost of doing so far exceeds the money they would get back.
Want proof?
How many internet companies pre-NBN provided services to rural Australia?
Not very many, why? Because there is not enough money in it.
Telstra is obligated to, but does the bare minimum.

It is 2017, spending $40bn-$100bn on an NBN is chicken feed and entirely within the purpose of having a federal government.
 
I would pick the Virgin roads subscription. I would be travelling via the same road, just the labelling would be different and the subscription charges/customer service would be different as well. This is similar to what happens even before NBN. Optus and Telstra ran parellal cables, but most others just bought wholesale capacity from either.

NBN - had it been built by private sector would have considered the cost factor/demand/customer service and built it in stages and based on demand.

Right now, I pay same amount of money for using my internet the same way (eg posting on bigfooty) as 6 months ago on ADSL2+.

But I get inferior service - lacking in customer services. As people who got NBN have realised, their landlines are now dead, and they have to move their base station's wired connection to the modem.

So now, the wall sockets in my wall are dead. And it is so for millions of Australians. They have to connect their landlines to the modem directly.

That's just one example.

You misunderstood, the roads are carved up and you have to choose. Only the very rich can afford both
 
They could have, but they didn't and would never because the cost of doing so far exceeds the money they would get back.
Want proof?
How many internet companies pre-NBN provided services to rural Australia?
Not very many, why? Because there is not enough money in it.
Telstra is obligated to, but does the bare minimum.

It is 2017, spending $40bn-$100bn on an NBN is chicken feed and entirely within the purpose of having a federal government.

The government didn't offer the subsidy. They are building the NBN.
 
Its call congestion, and an old network that should have been replaced by a FTTP.

Also, if you purchase a 100MB/s plan, it doesn't mean you will get 100MB/S 24/7, its speeds upto 100MB/s.

Even the ones on FTTP are being offered 100MBPS plan.

So, option 1 - stay on HFC from telstra/foxtel with 100MBPS which actually delivers 100MBPS

Option 2 - build a huge multi billion monoply and offer the upto 100MBPS plan which still offers the same speed.
 
And another thing

Previously, if you had a landline, and the electricity went out, you could use the landline still provided you had a wired phone.

Now, you need electricity to the NBN box and the modem to get your landline to work.

This can be an issue for elderly people who might not have a mobile and the lights have gone out.

For younger people, if your mobile's battery goes out and with no electricity, the landline will not work.

Again, not an issue in big cities, but for the very same rural places, in case of loss of electricity, the loss of landline can be an issue.
 
Even the ones on FTTP are being offered 100MBPS plan.

So, option 1 - stay on HFC from telstra/foxtel with 100MBPS which actually delivers 100MBPS

Option 2 - build a huge multi billion monoply and offer the upto 100MBPS plan which still offers the same speed.

Even the ones on FTTP are being offered 100MBPS plan.
And?

So, option 1 - stay on HFC from telstra/foxtel with 100MBPS which actually delivers 100MBPS

HFC may offer speeds upto 100MB/s, but you missed the bit about HFC becoming a congested and obsolete system with speeds significantly inferior to a full fibre network.

Option 2 - build a huge multi billion monoply and offer the upto 100MBPS plan which still offers the same speed

It doesn't.
 
Amazing that as the NBN falls apart before it is even built, Turnbull manages to avoid any scrutiny despite his implementation of the gigantic fiasco.
 

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And another thing

Previously, if you had a landline, and the electricity went out, you could use the landline still provided you had a wired phone.

Now, you need electricity to the NBN box and the modem to get your landline to work.

This can be an issue for elderly people who might not have a mobile and the lights have gone out.

For younger people, if your mobile's battery goes out and with no electricity, the landline will not work.

Again, not an issue in big cities, but for the very same rural places, in case of loss of electricity, the loss of landline can be an issue.

Just buy solar panels, lithium batteries and a diesel generator........and go off the grid.
 
Seriously, if the private sector won't even make the full capacity of the NBN available to the public by not buying enough bandwidth, how the * does anybody figure they would have built a better system in the first place?

100mbps in Toorak
50mbps in Glen Waverly
25mbps in Dandenong
12mbps in Pakenham
And if you live in Warragul, you'll still be buying the newspaper from the milk bar every morning and hoping there's something good on TV.
 
How's that going for you?
I have Solar and have paid less than $65.00 per year for the last 5 years, and only then because I'm loose and fast with my lectrickery....
 
Seriously, if the private sector won't even make the full capacity of the NBN available to the public by not buying enough bandwidth, how the **** does anybody figure they would have built a better system in the first place?

100mbps in Toorak
50mbps in Glen Waverly
25mbps in Dandenong
12mbps in Pakenham
And if you live in Warragul, you'll still be buying the newspaper from the milk bar every morning and hoping there's something good on TV.
The NBN are in the process of ditching the current "purchased allocation" regime, the problem is that the network will not be able to handle the current needs of an average family even when totally unthrottled.

I can currently stream a HD movie while downloading HD movie, while my daughter is on wifi and my wife is on wifi. On standard ADSL2. I pay $50 a month for unlimited data. never have drop outs or bottlenecks, and I am in an area rated as average for speed.
The NBN is offering me far less bandwidth, drop outs and outages for more money?
 
Another funny article in the FIN

What a bunch of ding dongs! Here's why the NBN is far worse than you think.

"Malcolm Turnbull's NBN hasn't even been connected to my house yet, and already it has slowed my internet connection and rendered my smart home almost useless.

I am not making this up.

The National Broadband Network, which in my neck of the woods is based around decades-old Hybrid Fibre Coax (HFC) copper technology, was connected to my suburb a month ago, the exact same time that my non-NBN internet connection took a turn for the worse, its upload speed dropping by two-thirds to around 700kbps on a typical day, and less than 100kbps on a bad day.

According to the technician who dropped by to investigate the problem, that may be no coincidence. My connection would already be running over the NBN backbone, he said, even though there's another month or two before people in the neighbourhood can officially sign up for and activate it."

http://www.afr.com/technology/web/n...n-is-far-worse-than-you-think-20170728-gxl1t7

Mr innovation is an embarrassment
 
And another thing

Previously, if you had a landline, and the electricity went out, you could use the landline still provided you had a wired phone.

Now, you need electricity to the NBN box and the modem to get your landline to work.

This can be an issue for elderly people who might not have a mobile and the lights have gone out.

For younger people, if your mobile's battery goes out and with no electricity, the landline will not work.

Again, not an issue in big cities, but for the very same rural places, in case of loss of electricity, the loss of landline can be an issue.
There is a requirement for batteries in the NBN Box that provides enough power to enable POTS to continue functioning in the event of a power outage - an issue it took NBN Co about 3 years to rectify (there were substantial disagreements about the minimum amount of time the battery should be able to operate for).

There was always going to a battery - it was the capacity that was debated for that long.
 
I had the option of a battery or not, I chose not because I'm not planning on having a landline.

Technically I have a socket for one and a number, but I don't even own a house phone to plug in.
 
has this worked out different to what people expected?

Exactly according to predictions so far. Instead of a simple universal system we now have a mixed bag of technologies that deliver less. The cheaper parts of the network are in danger of being obsolete before the network is finished. The cost of going back and replacing replacing them with what was originally planned is going to make the whole exercise more expensive than of it was done in the first place.
 

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