nbn is a disaster, page-175

  1. 350 Posts.
    Flats

    Private enterprise hasn't gone far into the suburbs because they only have a small percentage of the total user base in the suburbs. ie What percentage of end customers do the likes of TPG or AAPT have in the suburbs. Probably 10%. It is not commercially profitable for them. The NBN however will have close on 100% coverage in the suburbs as you would need them once the copper is pulled out (there is no chance Telstra will continue to maintain an aging copper infrastructure and exhange switching for the small percentage of people who want to remain) That makes the NBN profitable.

    And yes they will have to charge higher in city/suburbia to cross subsidise the country but that is a political decision based largely on the independents insisting on equal pricing. If NBN had free reign they would charge differentiated pricing same as fuel companies do when they sell petrol.
 
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