Internode calls for NBN compensation

 

The cost of DSLAM obsolescence.

Internode has put a price tag of up to $200,000 an exchange on the DSLAM investment it will lose in the transition to the National Broadband Network.

The ISP is seeking to be compensated for the assets in the same way that Optus and Telstra are being paid by NBN Co to decommission networks.

Regulatory affairs manager John Lindsay told a parliamentary committee that NBN Co's $9 billion deal with Telstra and $800 million deal with Optus are inconsistent with negotiations with the rest of the internet industry.

"NBN Co's sorry but we're basically out of luck because there's no compensation being paid for loss of DSLAM equipment," he said.

Internode has spent between $100,000 and $200,000 deploying DSLAM infrastructure in 197 Telstra exchanges nationally over several years.

The company has pushed ahead with continued DSLAM investment nationally in recent years, launching a $10 million infrastructure investment program to expand its direct reach to customers at Telstra exchanges just two months after the initial announcement of the NBN in 2009.

In addition to active DSLAMs, it has a further 11 exchanges in build or in planning, primarily in regional areas reached by the Federal Government's regional blackspot program.

According to industry sources, return on investment expectations for a single DSLAM investment often ranges between six and 18 months depending on the cost of backhaul to the exchange and critical mass in the area but one source said this could be as short as three months.

Telstra's competitors, according to Lindsay, potentially faced more fees for removing or leaving DSLAM infrastructure in the incumbent's exchanges.

Remember to sign up to our new Telecommunications bulletin to stay connected with a concise online wrap of Australiaís telecommunications and ISP industry.

Regional pressures

Lindsay warned that competition in regional areas could be constrained by backhaul to the 40 long-term points of interconnect outside capital cities and NBN's "arbitrary" $20 a megabit connectivity virtual charge.

"There's a huge amount of uncertainty around what it will actually cost us in those regional areas," he said.

"We may yet not actually offer existing subscribers service in those areas is the overhead of connecting there is too high."

Though Internode has released its NBN pricing for trial customers, the company is yet to guarantee it will maintain those prices or cross-subsidise regional customers once all 121 points of interconnect have been implemented.

Copyright © iTnews.com.au . All rights reserved.


Internode calls for NBN compensation
 
 
 
Top Stories
ATO releases long-awaited Bitcoin guidance
Everyday investors escape the tax man.
 
Why the Weather Bureau’s new supercomputer is a 'gamechanger'
IT transformation starts to reap results.
 
Sydney Trains chief thinks beyond Opal
Plots app to help you find a seat on the train.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest articles on BIT Latest Articles from BIT
Run a small business in western Sydney?
Aug 15, 2014
This event might be of interest if you're looking to meet other people with a similar interest ...
Buying a tablet? Microsoft's Surface Pro 3 goes on sale this month
Aug 8, 2014
Microsoft has announced its Surface Pro 3 will go on sale in Australia on 28 August from ...
Apple's top MacBook Pro with Retina is now cheaper
Aug 1, 2014
Apple has updated its MacBook Pro range with faster processors and new pricing, including ...
Pass on carbon tax savings, warns ACCC
Jul 24, 2014
The ACCC is warning businesses that supply "regulated goods" to pass on any cost savings ...
Have customers that won't pay debts?
Jul 10, 2014
The ACCC and ASIC have updated their advice when it comes to collecting debts.
Latest Comments
Polls
Which is the most prevalent cyber attack method your organisation faces?




   |   View results
Phishing and social engineering
  66%
 
Advanced persistent threats
  3%
 
Unpatched or unsupported software vulnerabilities
  12%
 
Denial of service attacks
  7%
 
Insider threats
  12%
TOTAL VOTES: 408

Vote