The NBN will find itself up against mobile communications with it being only a matter of time before one-gigabit services begin. As such NBN could be bypassed unless it provides a level playing field.
So said CEO and cofounder of MyNetFone Rene Sugo in an address to MediaConnect’s Tech Leaders conference – a two-day tongue-fest which brings together technology leaders and journalists – which opened in Leura in Sydney’s Blue Mountains yesterday.
According to Sugo, the NBN business case is under threat, due to a combination of an “unfeasible” NBN wholesale pricing structure and the risk of bypass options from the big telcos.
“The NBN wholesale pricing model business case is currently usage-based and relies on reaching a certain percentage of service activations to generate sufficient revenue to repay the investment of building the network,” said Sugo.
“In order to reach this activation target, NBN has to be the number one choice for data services for consumers, and be available at a viable pricepoint for service providers of all sizes to resell – and as it stands this is not going to be realistic.”
He said the challenge is that the four big telcos will offer their own data services that bypass the NBN and can be delivered at a better margin and competitive pricing.
“The current NBN model distinctly favours the top end of the telco industry – however, the big telcos have more attractive bypass alternatives to sell to their customers. The NBN bypass will eat away at the NBN market share,” Sugo said. – Kate Castellari
