sign of things to come?

Telco signals internet costs under the NBN
ARI SHARP
May 20, 2010
INTERNET users in the small Tasmanian towns that will kick-start the national broadband network will initially be able to pay less than $45 a month for internet and voice calls.
Primus Telecom yesterday announced pricing for Smithton, Scottsdale and Midway Point, which are scheduled to become the first towns connected to the $43 billion fibre-to-the-premises network later this year.
Primus will offer fast internet with 15 Gb of data and voice calls for $44.97 a month for six months as part of an introductory offer, but the price will double to $89.95 for the rest of the 24-month contract.
It will also offer a separate broadband plan starting from $39.95 on either a 12 or 24-month plan, but this would require a fixed-line phone plan with the carrier for at least $24.95 a month.
While the company did not declare the speeds of the service, they are believed to be 25 megabits per second (Mbps), well short of the 100 Mbps the network will offer.
Primus is one of three carriers that will be providing services to customers in the first towns in Tasmania.
Its rival, iiNet, has announced fibre plans ranging from $49.95 for 25 Mbps to $159.95 for 100 Mbps. The company does not offer fixed-line voice calls, but does offer VoIP (voice over internet protocol).
Internode has previously indicated it would offer prices comparable to its existing $49.95 a month for its basic product, but a spokesman for the company yesterday said it expected to release pricing by the end of next month.
While the carriers are setting prices to ensure a smooth launch to the broadband network, once the network is established it is expected they will offer similar prices nationwide.
''This is a key milestone in Australian communications history and we are proud to be part of it,'' Primus chief executive Ravi Bhatia said.
''This is the first opportunity for many of these customers to receive an internet experience of the future, incorporating richer media, high-definition video, internet television and other advanced services.''
The three carriers will use the broadband infrastructure constructed by the government's NBN Co, which will be a wholesale-only provider. The implementation study released earlier this month suggested the monthly wholesale price per household should be $35 for basic broadband and voice, rising to $50 for premium broadband and voice.
Tasmania was chosen for the launch of the broadband network because of the support of the state's utility provider, Aurora Energy. Services in the three towns will cover 5000 homes and businesses.