Telcos are very critical of the whole CVC pricing concept, the cuts announced recently do not impress them:
"As it stands, the CVC charging regime may be one of the biggest obstacles to the NBN delivering on what it was intended to deliver ... this is because of the Netflix effect, crudely," Epstein said at Tuesday's CommsDay Summit in Sydney.
"What is unfolding is an intersection of a change in customer behaviours and the product economics of the NBN."
This so-called "Netflix effect" -- to which Optus itself will add once its EPL broadcast streams begin in August -- has resulted in more data consumption than the networks were designed for. While some have suggested that telcos simply purchase more capacity on the NBN to allow for this, Epstein pointed out that this has its limits.
"How much capacity can you buy, and deliver services across it, that customers can afford to use, or want to pay for?" he asked.
Epstein added that levying an industry-wide charge will also stymie innovation and competition among providers.
"The problem with industry averaging is that it's a potentially incrementalist approach that rewards the lowest common denominator. It does not reward RSPs who want to exercise initiative or want to innovate by creating new, better-provisioned service offers that compete on quality of experience," he said.
"Under an averaging model, an RSP offering better tiers of NBN services than its competitors at common price points face real risks of paying a larger penalty in a market that can be quite competitive. So where's the incentive in that?"
Probably CVC pricing will have to be done away with, to a very large extent anyway. Then how will the collection of incompatible and obsolete technologies make any money?
Come on Malcolm, come on Fifield, come on Morrow, end this shit and run out FTTH at a rate of knots, ramp up to 50,000 premises passed a week! Skinny fibre and FTTDp, allowing small businesses to offer running fibre from the distribution point to the house or other building so creating a FTTH connection. This would be paid for by the householder.
The MTM is dead, it just remains for the shambles to realise it and redirect the rollout.