Feeds

NBN Co offers start-up rebates for providers

Responds to entry cost concerns

The smart choice: opportunity from uncertainty

NBN Co, the company building Australia’s National Broadband Network, has responded to concerns that its services price small ISPs out of the market, announcing tariff rebates for capacity charges during the start-up phase.

The network has been criticized by some for setting prices on “Connectivity Virtual Circuits” (CVCs) that would make it difficult for smaller providers to achieve a national footprint. A good backgrounder, by Internode’s Simon Hackett, can be found here.

The problem stems from the service structure offered to retailers. The NBN is an access network only, connecting premises within a Connectivity Service Area (CSA), with services concentrated at a Point of Interconnect (PoI). The CVC provides the link from the CSA to one of 121 PoIs scattered around the country.

When the network is rolled out nation-wide, a retailer seeking a national footprint would, therefore, have to buy its access connections to premises; a CVC from each CSA to the PoI; and finally, backhaul – from existing carriers with long-haul networks, such as Telstra, Optus, Nextgen Networks and others – from the PoIs back into its own network.

In this announcement, NBN Co is responding to the cost of the CVCs. In each CSA, the first 150 Mbps of traffic back to the PoI will be rebated until the network passes 30,000 premises in that area.

Just how much CVC capacity a retail provider will need is going to depend on three things: how many customers it connects in an area; what plans those customers are using (from 12 Mbps at entry level up to 100 Mbps); and the amount of contention the retailer decides is suitable for its customer base.

Internode and iiNet have both supported the new arrangement as allowing retailers to build the necessary scale to bear the cost of CVCs. ®

Mobile application security vulnerability report

More from The Register

next story
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
Microsoft unsheathes cheap Android-killer: Behold, the Lumia 530
Say it with us: I'm King of the Landfill-ill-ill-ill
All those new '5G standards'? Here's the science they rely on
Radio professor tells us how wireless will get faster in the real world
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.