NBN wholesale pricing still up in the air

NBN Co continues negotiations with ACCC around wholesale pricing, but final outlook is still months away

Potential revenue inflow for the company charged with rolling out Labor’s National Broadband Network (NBN) remains up in the air as it continues to negotiate final wholesale pricing with the industry watchdog.

NBN Co chairman, Mike Quigley, told the Senate select committee on the NBN in April that negotiations with the Australian Competition and Consumer Commission (ACCC) over wholesale access pricing would begin in June.

"We believe the consultation process is important because we are currently preparing the documentation necessary to lodge a special access undertaking with the ACCC,” he said. “We plan to lodge the undertaking in June this year. As part of the ACCC undertaking we will have to establish our wholesale prices.”

When asked what the prices might look like by Liberal senator, Ian McDonald, Quigley took the question on notice.

The final answer from the company, provided to the senator this week, confirmed that “the overall national pricing structure is yet to be finalised and is part of our Special Access Undertaking (SAU) to the Australian Competition and Consumer Commission (ACCC).”

However, a spokesperson for the company confirmed with NBN Co that the undertaking was still under development and several months away from completion or finalisation.

“We are yet to lodge the undertaking, but when we do the ACCC will carry out an industry consultation process and seek submissions,” they said. “We expect the ACCC will take some time to give all material detailed consideration before making a determination, and therefore the process may take several months to complete.”

NBN Co has continued to insist that its wholesale pricing would be competitive to the current industry standard, with some analysts forecasting potential pricing of $20-30 per month for each user. Until a final pricing was determined, however, the wholesaler committed to providing the service to access seekers for $300 per premises.

This includes the four service providers - Internode, iiNet, iPrimus and Exetel - currently serving approximately 2,000 premises in the stage one sites of Midway point, Smithton and Scottsdale in Tasmania. If a wholesale price is not determined by the time the first mainland trial sites are launched early next year, access seekers there would also be able to provide NBN services to customers without paying a wholesale price.

“How is NBN Co ever going to pay interest on its borrowings, let alone pay a dividend on its $43 billion investment, if it receives no income?” Senator McDonald said in a statement, in response to NBN Co’s answer.

A minimal costing of the project was initially made available in the pre-election fiscal outlook released by the Labor party in July, but was notably missing from the Treasury costings of the party’s policies released by independent MP, Rob Oakeshott, this week.

Quigley recently indicated the project would require a peak government equity investment of $27 billion - $1 billion more than the figure estimated by consultants in the NBN Implementation Study - with additional debt funding of approximately $10 billion. He also pointed to potential operational revenue as a result of wholesale access the company would charge for over time, but indicated this would be a small portion of the total revenue and would likely be used to fund the rollout rather than pay back debts.

The government has already committed $662 million of equity to the project so far in both operational expenditure and capital expenditure, setting up the wholesaler and completing the first stage of rollouts in Tasmania, which was reported to have come five to ten per cent below its $37 million budget.

More about: ACCC, Australian Competition and Consumer Commission, etwork, iiNet, Internode, iPrimus, Midway, Primus, Quigley
References show all

Comments

1

Raymond

Fri 03/09/2010 - 09:37

NBN Pricing up in the air........never! that fab Mr Quigley would have well and truly completed financial modelling, and have a rock solid $48 billion business plan well in place.........wouldn't he?.......anybody!

2

Tony A.

Fri 03/09/2010 - 11:17

Hi @Raymond, love your work. Just a reminder that your annual membership fees are due soon. Hugs and kisses, Tony

3

Richard Ure

Fri 03/09/2010 - 11:59

National Broadband is like the ABC. Everyone can use it (including telephony) and each additional user adds nothing to the cost of providing the service. Being free to users (RSPs) maximises the public good flowing from the existence of a ubiquitous network by maximising services rather than duplicating infrastructure and means the NBN should stay in public ownership.

The nation can often benefit more than the person who actually uses the NBN directly, by for example, reducing the need for transport and other infrastructure. So instead of banging on about the number of hospitals which could be built with the money, think about the resources which may not be needed with ubiquitous high quality communications.

If we were thinking of starting the ABC today would we ever get past the debates we are thrashing about with now?

The copper network has been written down to nothing. Enterprises usually replace written down equipment, with the current model. When the horse dies, you replace him with a B double.

4

Raymond

Fri 03/09/2010 - 12:03

@ 2 Anthony dear Boy, you have given me the best laugh for a long time, I actually took a moment to get it!..very funny..well done!

5

Joe H

Fri 03/09/2010 - 12:42

Raymond, I hear from T that your not bad at aritmet err arhtamit ohh ehm maths, I could really do with a hand.

6

Raymond

Fri 03/09/2010 - 12:46

@5 Joe, get a grip! then again I suspect you already have!

7

RS

Fri 03/09/2010 - 15:26

@#1 Raymond!

Can’t you read? Can’t you comprhend? Are you too biased to want to know the truth? Yes, all of the previous, eh Ray, illiterate fool?

Yesterday, at another CW thread and after that big mouth of yours had done OT, you were immediately supplied with the very info you had requested. Here -

http://www.computerworld.com.au/article/359224/nbn_missing_from_alp_costings/

After that, you and that mouth, suddenly, oddly but typically disappeared! That info suggested the NBN wasn’t on the back of an envelope as you wrongly said and certainly, you couldn’t prove. It also said the NBN would only end up costing $26B (maybe less with the Telstra deal)..BTW, it’s never been $48B, more lies, fool!

But like the pitiful Liberal dunce/puppet you are, here you were at another CW thread only some 12 hours later, pretending the info doesn’t exist and lying about the very same disproved BS…

So since your ignorance has been unsuccessful, I'll look forward for the typical, desperate attempt to discredit the info, ready… here it comes!

Anyway, where’s your information to disprove me and back any of the mindless lunacy you spew forth? Well...!

Are you listening idiot? I just whistled…be here soon!

8

D Newman

Fri 03/09/2010 - 16:17

@RS, its ok RS its over, Raymond's ilk will be tucked away for at least a year or so by monday, and he will appear again like magic when the sound of election war drums ring out again, but for now he is finished,spent and flacid.

Strangly ironic that nothing he said truely added up, and how his icons also failed on the same score.

Look forward to recieving the winnings from 2 bets on Monday Raymond,after all you challenged me twice, it was a good fight.

9

Raymond

Fri 03/09/2010 - 16:44

@8 Newman, we in the racing game call that the early Crow!

I have seen horses ridden to perfection and get beaten, I have had horses lead by ten lengths and just get beaten! be careful you have not gone off too early, who knows Natalie from Media Staff may be watching you? and you may not be back!

And as for your boyfriend, he is only happy because Bob will allow gay marriages, put the ring away ladies, you are not there yet.
And Newman, or whatever your real name is! iinet will not neccessarilly benefit from what ever form of NBN under a god forbid gov ends up being.

So back to your boyfriend, he cannot get over no fin modelling, or business plan, still irks him, do you have champers in iinet Perth, maybe you could buy some from the winnings if you had the guts to bet, perhaps you didn't you are married for twelve years, less for manslaughter!
How are you going to explain to the good wife and your work colleagues at iinet the "boyfriend"

Be very careful of Natalie, you are being watched!
Fight is not over whatever you are called from iinet, now is the time when you punch very hard to make it count, as I said long ago...do to them before they do it to you!

10

RS

Fri 03/09/2010 - 17:02

Whistle + open wide (ga ga ga) = Raymond...!!

11

Raymond

Fri 03/09/2010 - 17:06

@8, I was just thinking Newman or what ever your name is, because that is not your real name, therefore you are also more than likely telling lies about working at iinet as well, yet you and your boyfriend come on here and act like the Pope and mother Therese.

Why don't you tell us your real name, and the real place you work!
Or perhaps you are Bob from the choir?
perhaps you are just a cheap contractor!
Tell us your real christian name at least, bet you haven't got the guts!
OR
Have you twigged that Natalie is watching!
Come on make my life tell us your name!

12

RS

Fri 03/09/2010 - 17:09

Lol... what pompous, narcissistic, moron you are Raymond seriously!

There's that whistle again...!

13

Raymond

Fri 03/09/2010 - 17:14

@ 12 Well sh.. for brains or should I say Crayfish, I can promise you one thing your boyfriend Newman or whatever his real name is from iinet will not answer the question of his real name........never way too gutless....to the point he may never appear again!
Lets see who has gone off too early!

14

RS

Fri 03/09/2010 - 17:21

Good boy...Raymond

You always come running like a mangy cur, when I demand.

As such, I will allow you to come up for air Raymond Lovelace, your gagging is over, for now...LOL

I am actually laughing out loud at you and will have another contented grin on my face all night, at your expense F O O L...!

15

D Newman

Fri 03/09/2010 - 17:22

Oh my god, @11 how do you have the hairy ones to preach about names, you use so many, you even talk to yourself in the most reach around manner, and you think that fools people here, dear lord .

My name is up there for all to see, it is my real name and what I do is also not hidden but very public, but placing the shoe firmly on the other foot, you should state the company you work for and surname, oh but misdirection to hide the truth is all part of the agenda for you, question is, who is paying the piper?

16

Raymond

Fri 03/09/2010 - 17:28

@15 Newman or whoever you are, you are a liar! you do not work for iiNet, if you do prove me so very wrong and introduce yourself to Natalie from iiNet media Staff....dare you, you are a cheap fraud and a LIAR
You have been crapping on here representing your self as some know it all from iiNet you are a LIAR

17

RS

Fri 03/09/2010 - 17:32

DN... notice that when Raymond Lovelace here, is disproved, rather than being a man and accepting he goes the aggressive bluff and bluster and tries to cloud the issue with even weirder BS.

Last time it was threats of violence (LOL - he will bash us with his cheap and horribly noticeable toupee and walking stick), this time veiled threats in relation to your employment and wanting names...

Faul, or was that foul .. no fowl... as in GOOSE!

18

RS

Fri 03/09/2010 - 17:53

@#8 DN... I'm not ready to call anything just yet...

Dealing with loose cannons the likes of Katter (Ray's younger twin) you never know what can happen...!

19

D Newman

Fri 03/09/2010 - 18:07

lol im a fraud? kettle pot black raymond, I have nothing to hide and never have so your little trantrum garners no rise from me, and how you bluster when backed into a corner with your own lies.......
Oh M Mouse and D Duck say hi from your office.

20

RS

Fri 03/09/2010 - 18:10

...and Legal Eagle...

21

Darryl & Peg

Fri 03/09/2010 - 21:27

Hello everyone can i ask a question please ?
I was looking up how much the NBN may cost us to use as we are retired and on the pension, and we found this article.
In this article does the $30 a month wholesale charge mean that is just the connection to the new network ? So does that mean the Internet Supply Provider and phone bills are extra charges on top of that ?
Today we pay $49 for quite good internet and the phone as Telstra bundle, then we get a rebate so its about $29 or so.
Its a very good service but expensive and we need the phone and the internet for our children to call or email.
We were hoping the TV cable shows could be thru the NBN like they said and the whole thing would be less than $25 a month. Our budget is about $25 a month in total after the rebate as we are on a fixed income.
Also another question - would there be a pensioner rebate ?

22

RS

Sat 04/09/2010 - 13:12

Agreed Raymond (ga ga ga) Lovelace - "nothing beats a cheap LIAR"... and you are as cheap and undoubtedly the biggest LIAR, I have ever encountered.

I call on you now to fess up to your LIES Linda, tell us your full name and address (so we can come around and laugh at you in person) before you again, feast and gag upon luscious ***k, that you so lust after...!

Normally I would pity such a cretin, but you, I physically laugh at!

Look - LOL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I have again whistled... come forth mouth agape, ready to receive...idiot!!

23

D Newman

Sat 04/09/2010 - 14:22

LOL @22 "the media office" oh Raymond you are without a doubt a child in a big mans world, media office oh please.

Try Human resources department dummy, what the heck would the media office know, oh wait you think I,m part of the PR team, oh lol no seriously LOL.....Thats why I do shadow advertising by pretending to be a happy customer.

OH WAIT I dont, im upfront about my employer so to allow people to judge if i,m biased in a reply, unlike you who believes he has a yacht and runs a large company, strange that someone with those credentials wouldnt have the first darn clue on how to track someone in another company, and know the reply you would get if you did.

After I have told you repeated my work history and areas of work, you come up with Media office, you are truely clueless in the struture of a company and company (HR) rules, you no more run a company than a fry cook runs McDonalds.

24

Raymond

Mon 06/09/2010 - 16:54

So D Newman from iiNet.......Liar.............how come you are not on the internal phone directory.......how come you are not know to B Paparusis?

EXPLAIN that smart arse liar!

Tell us where you work, because it is not for as you Claim iiNet!

25

RS

Mon 06/09/2010 - 17:03

LOL...!!!!!!!!!!!!!!!!!!!!! Fled the other thread and here now...

Poor sorry, idiot...! You can run but you can't hide.

You are being played for the fool and playing your part (as the obvious fool you are) perfectly.

Tell us again about your yacht, racehorse, billions and whatever else you can make up idiot?

Hook baited and thrown in front of said, unstable knob A G A I N...

Well ga ga ga , you know you must? LOL...!!!

26

RS

Mon 06/09/2010 - 17:39

Yoo hoo Raymond (turn your hearing aid up gramps) I whistled A G A I N, internet liar/lovelace...?

Where are you? It's your turn, I have whistled, LOL...!

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