Feeds

NBN Co pricing under spotlight

Hated CVC prices could be cut

Choosing a cloud hosting partner with confidence

NBN Co is considering revising its wholesale pricing model, and has approached the industry for comment.

According to industry newsletter Communications Day, the usage-based Connectivity Virtual Circuit (CVC) charge, which has been subject to criticism since it was first announced in 2010, may be either overhauled or eliminated completely.

Retailers setting up NBN services have to purchase two products: the per-subscriber Access Virtual Circuit (AVC), which takes customer traffic from the premises to the aggregation point; and the CVC, the backhaul component that ships bulk customer traffic from NBN Co to the retail service provider (RSP).

Criticism of the $AUD20 per-Mbps-per-month CVC charge centres on the overhead it imposes on RSPs: until NBN Co revised it in 2011, they had to pay for backhaul before they had customers to fill it, and as customer numbers grew, it encouraged them towards high contention ratios.

While NBN Co recognised the problem and gave RSPs the first 150 Mbps of traffic for free in each connectivity serving area until an area reached 30,000 premises passed. Now, the network builder is looking at further revisions to the price model.

Communications Day says NBN Co has begun circulating a discussion paper to members of its product development forum. In it, the company proposes various alternative models for CVC pricing. The company canvasses:

  • Dropping the CVC price to $AUD17.50 per Mbps per month and retaining the AVC;
  • Eliminating the CVC charge and offsetting it with higher AVC charges;
  • Eliminating AVC charges entirely in favour of a purely volume-based charging model;
  • Offering volume-based variations to CVC prices, to encourage sales of higher-speed services; or
  • Revising AVC prices in the different speed tiers.

According to Communications Day, RSPs will have until September 8 to respond to the discussion paper. ®

Intelligent flash storage arrays

More from The Register

next story
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Virgin Media struck dumb by NATIONWIDE packet loss balls-up
Turning it off and on again fixes glitch 12 HOURS LATER
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
Soz, web devs: Google snatches its Wallet off the table
Killing off web service in 3 months... but app-happy bonkers are fine
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Internet Security Threat Report 2014
An overview and analysis of the year in global threat activity: identify, analyze, and provide commentary on emerging trends in the dynamic threat landscape.