With cvc, service providers pay nbn a cost for a fixed amount of...

With cvc, service providers pay nbn a cost for a fixed amount of bandwidth. This is then shared amongst that service providers users.

Say if the provider pays for 100Mbs of bandwidth, and has 100 users. Each of the user is connected to a 100/40 plan.

During peak hours when all users are using their broadband, then they'll each get ~1mbps in throughout. I.e. Crap speed. In order to make everyone feel like they are getting a 100/40 plan, the service provider might need to get a lot more of this bandwidth - CVC.

In reality, obviously not all users will be using their broadband at the same time. But like electricity, usage is typically concentrated around the same time - everyone gets home around the same time and all expect Netflix to work.

This is where scale comes into play. The more users a service provider has, the more customers with different usage patterns they'll have, and the more efficiently the bandwidth can be shared around. The more bandwidth they need the cheaper unit cost they pay.

If Telstra has some 48-50% market share in the NBN world then chances are customers are getting better quality service overall comparing to everyone else plus they'll pay a lot less per unit bandwidth too.

Now don't confuse the quality service here with quality customer service. I'm only referring to broadband speed. I do hope they are making efforts to maintain and constantly improve their customer services.

Still, good luck to all shareholders - to CP, if I can predict exactly how the company doing I'm probably inside trading, and in fact would be quietly making my $billions rather discussing here ;-)

DYOR.