So, it takes a month for everyone to figure out the obvious...

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japanfresh

919 Posts.

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11/01/18

14:13

Post #: 30227813
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Originally posted by japanfresh ↑

I wasn't sure what you were on about here, the chart I'm looking at clearly shows the 27% reduction (not 28%) to look visually accurate. The I scrolled further down to the bar chart.. Hahaha.. classic! Lies, damn lies & statistics!

Thanks again Bug for providing the stats.

Either I, or the market is missing something here. I view this announcement as a positive for all ISP's.

As ARPU increases so does AMPU (akin to the price of petrol). Forgetting headline speed for a moment, the CVC inclusion (the real bandwidth) has effectively doubled at a lower wholesale cost than the previous 25Mb.

If communicated effectively, ISP's will have a genuine offer to customers to double/quadruple their 12Mb/25Mb service and their real world experience will also dramatically improve. Even squeezing and extra $2 will improve margins by 10%.

Large ISP's with their own IP have virtually no cost (as shown by Bug's post). And resale ISP's will have to purchase more IP from the big four.

Unless the market had already factored this in, I would have expected VOC, TPM & TLS to jump on this outcome.

Then again, I'm still perplexed that NBN stealing TLS' margins then becomes another negative when they delay HFC?

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So, it takes a month for everyone to figure out the obvious outcome from the new NBN pricing:

http://www.smh.com.au/business/nbn-...pricing-out-small-telcos-20180110-p4yyde.html

So, the new benchmark for 50Mb appears to be $80 p/m with TPG offering $70. I think Dodo are still confused.

Even when the wholesalers move their pricing, they can still grab some margin from the additional transit and IP being supplied.

VOC Price at posting: $3.24 Sentiment: Buy Disclosure: Held
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So, it takes a month for everyone to figure out the obvious...

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