Read The Times Australia

Daily Bulletin

Customers aren't buying fast broadband because that is not what they are being sold

  • Written by: The Conversation Contributor

The NBN has become an election issue in Australia with claims being made that the Australian public doesn’t want to pay for the the higher speed options of the National Broadband Network (NBN).

The Australian claims that only 15% of consumers have so far opted for speeds of 100 Mbps (Mega bits per second), with the bulk (47%) using the 25 Mbps service and the remaining 33% on the slowest speed of 12 Mbps.

This purchase profile is being used as an argument against the need to change the Fiber To The Node approach of the current government, to the Fiber to the Premises or Fiber to the Distribution Point favoured by the opposition parties. If people don’t want faster speeds, why provide better technology that guarantees even greater speeds than what is currently on offer?

The Australian experience is clearly at odds with what is happening in New Zealand where uptake of fibre broadband with speeds above 25 Mbps seeing a growing adoption rate.

image NZ Household Broadband Internet Speeds NZ Government Statistics Office

The US market is also showing that services up to 1 Gbps (1,000 Mbps) have become increasingly popular. AT&T has announced that it will expand its ultra-fast fibre-to-the-home (FTTH) broadband to a range of new cities in the US. At the same time. Verizon’s fiber broadband starts at 50 Mbps and is available up to 500 Mbps.

image AT T GigaPower Fiber Internet AT&T

In the US and New Zealand, when advertising broadband plans, the emphasis is on the different speeds available. AT&T) and (Verizon)[(http://www.verizon.com/home/fios-fastest-internet/) do not even mention download limits as these are “unlimited”.

In contrast, in Australia, Telstra does exactly the opposite, selling plans on the basis of download limits. To actually find out what the speed of the broadband connection is, a customer needs to open a document to get a link to a page that talks about speeds of all of their different types of internet plans. It turns out that Telstra’s standard NBN plan is 25 Mbps. To get 50 Mbps you have to get a “Very Fast Speed Boost” and to get 100 Mbps, you need to opt for a “Super Fast Speed Boost”. Of course, you need to look at the original document to find how much extra, the speed boosts will cost (AUD $20 and $30 extra a month).

image Telstra NBN Plans: No mention of speed Telstra Pty Ltd

Australia’s other major internet service provider iiNet does a better job of allowing the selection of either 25 Mbps or 100 Mbps plans. iiNet still emphasises the download limits, even though anything over 200 GB a month for the average family would be rarely used. The 25 Mbps plan is selected by default and the advice given on the site is that this would be more than sufficient for the average family.

Contrasting iiNet’s recommendations is Verizon who suggests that 100 Mbps is the minimum necessary for households with 3 to 7 devices.

It is not surprising that in Australia, the majority of customers are opting for speeds of 25 Mbps because this is what the ISPs are pushing. The likely reason for this is that those plans are at a comparable price to what was available on one of the better non-NBN (ADSL2+) broadband plans. The economics of what the ISPs charge for the NBN is in part determined by nbn.co who sets wholesale prices for these connections based on speed.

Telstra’s commercial NBN plans are no different. The default is a 25 Mbps speed and again, if there are options for faster speeds, these are well hidden.

Apart from the way in which the Australian ISPs sell broadband products to emphasise the 25 Mbps connection, Australian is also in a chicken-and-egg situation. At the moment, people don’t see the need to get faster broadband because there are not the apps and services that really require it. Those apps and services are less likely to appear because people don’t have the speed and capacity on their broadband connections to be able to support them.

In the US, at least in this instance, there is the view that if you build the infrastructure, others will provide the applications and services to use that infrastructure. Being first in that game is obviously important. This is obviously not driving Australian ISPs, and why they don’t believe that they should offer faster speeds is a mystery.

Authors: The Conversation Contributor

Read more http://theconversation.com/customers-arent-buying-fast-broadband-because-that-is-not-what-they-are-being-sold-59495

Business News

Is Your Brand Showing Up in AI Search? Most Melbourne Brands Aren't.

The New Front Door Nobody Told You About Something changed. Quietly. Without a press release. The way buyers find businesses in Australia has been rewired. Not replaced, rewired. Google isn't dead...

Daily Bulletin - avatar Daily Bulletin

How Australian Businesses Can Measure SEO ROI

SEO can feel vague when you are staring at a dashboard full of numbers that do not clearly connect to revenue. The key is to measure the right signals in the right order, then tie them back to outcome...

Daily Bulletin - avatar Daily Bulletin

How Commercial Roller Shutters Improve Site Security Without Slowing Operations

Security upgrades can be frustrating when they make everyday work harder. A door that takes too long to open, creates bottlenecks at shift change, or fails at the worst time can turn “better protectio...

Daily Bulletin - avatar Daily Bulletin

Why a Document Destruction Service Still Matters for Modern Businesses

Businesses generate large volumes of information every day, from staff records and contracts to invoices, reports and customer files. While attention often focuses on how documents are stored, the way...

Daily Bulletin - avatar Daily Bulletin

Bicycle Rack Safety and Space-Smart Storage

Bike storage problems usually show up as small annoyances first: tangled handlebars, scratched frames, and bikes that topple when you pull one out. Over time, those issues become safety risks, especia...

Daily Bulletin - avatar Daily Bulletin

How to Tell if a Childcare Centre Is a Good Fit for Your Child

Choosing childcare can feel like you’re making a huge decision with limited information. Tours are short, centres are often on their best behaviour, and your child might act differently in a new space...

Daily Bulletin - avatar Daily Bulletin

Car Import Timeline: What Usually Happens at Each Stage

Importing a car into Australia can feel confusing because multiple agencies and checkpoints are involved, and the timeline is shaped as much by paperwork quality as it is by shipping speed. The most u...

Daily Bulletin - avatar Daily Bulletin

Portable Toilet Hygiene Standards Explained: Clean vs Sanitised vs Disinfected

In portable toilet servicing, the words clean, sanitised, and disinfected often get used as if they mean the same thing. They don’t. And that difference matters because a unit can look tidy and still ...

Daily Bulletin - avatar Daily Bulletin

Options Available When a Company Faces Financial Distress

Financial distress can develop gradually or arrive suddenly, and when it does, the decisions made in the early stages often determine what options remain available later. Directors who act promptly ...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...

How A Diploma Of Project Management Builds Practical Skills For Modern Work Environments

Developing the ability to plan, execute, and deliver outcomes efficiently is a key requirement in to...

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...

What to Ask a Wedding Photographer Before You Book

Booking a wedding photographer can feel deceptively simple: you like the photos, you like the vibe...

Why Stress Relief For Dogs Is Essential For Emotional Balance And Long-Term Wellbeing

Managing emotional health is just as important as physical care when it comes to pets, which is why ...

Australia’s Best Walking Trails and the Shoes You Need to Tackle Them

Australia is not short on spectacular walks. You can follow ocean cliffs in Victoria, cross ancien...

Why Pre-Purchase Building Inspections Are Essential Before Buying a Home in Australia

source Have you ever walked through an open home and started picturing your furniture, family d...