NBN Prices Not a Factor When Consumers Opt For Slower Plans

June 20, 2017
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Another reason to be mad about.

National Broadband Network (NBN) CEO Bill Morrow has done it again by saying the uptake of high-speed internet has nothing to do with NBN’ pricing since prices of the services will only cost an extra $2 per week.

 

During his speech to the American Chamber of Commerce (Amcham) held in Melbourne, the NBN CEO repeated his claims that consumers will not need and use 1Gbps internet speeds, a claim based on data showing a majority of NBN users choosing the 25Mbps speed tier.

 

Moreover, Morrow contradicted the claims of some retail service providers (RSPs) regarding the lack of uptake on internet speeds, saying NBN’s pricing structure is not the reason.

 

“The reality is that very few Australians have a use for gigabit speeds today. The fact is, the very few applications that demand this amount of data simply aren’t at scale yet,” Morrow argued as quoted by ZDNet.

 

“In our own uptake patterns, people are gravitating to speeds that meet their needs; 83 percent of all our activated homes have opted for 25Mbps or less. In other words, only 12 percent have chosen the top tier.”

 

“And contrary to what some may think, this is not due to price premiums imposed by NBN; those higher speeds are only slightly more, at AU$8 per month over the billing period, which is around AU$2 per week,” he added as quoted by ZDNet.

 

Adding more fuel to the fire, Morrow added to the lack of uptake issue, saying that NBN’s technology is also not a reason for it. He claimed that even fibre-to-the-premises (FttP) consumers are choosing slower speed options.

 

“Installing gigabit speeds today for everybody would be a significant investment with a questionable rate of return. Ultimately, this why we are building the network Australia needs today and ensuring the technologies we are deploying each have a very clear upgrade path into the future,” he said as quoted by ZDNet.

 

“This is fiscally prudent and it is our commitment to you as taxpayers.”

 

This is madness. Saying citizens don’t need high-speed internet is depriving them of their right. A lot of Australians are struggling to even have a decent connection. The cries of these people have already caused an increase in complaints and nothing has been done to resolve it.