MNF Group chief commercial officer Jon Cleaver says that while pre-election talk focused on debate around copper versus fibre, and the speed of the rollout of the "super fast" broadband network, both the Coalition and Labor parties have continued to ignore the “flawed commercial model” which is based on a high-cost usage charge model.
Cleaver said MNF believes this legacy model, which is seldom used elsewhere, is causing congestion, instead of, as promised, solving the problem.
“Peak-hour congestion has been around since the start of the Internet. However just as we thought this was going to be a thing of the past, it is instead going to get worse as you will be impacted not just by your neighbours, but your whole suburb.
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According to Cleaver, Australia’s Internet network is working along the same principle as cars on a highway in congested peak-hour traffic.
“The answer is not increasing the speed limit. That does not reduce the congestion issue. It is about having more lanes. With the NBN, we have those lanes, but commercially they are not being made available. We have the pipes and have spent the money putting in the infrastructure, but we are asking end users to pay a per usage cost when we live in an unlimited world.
“This poor user experience will only drive people away from the NBN to alternatives.
“Given the NBN business model relies on reaching an unrealistic target of 80% of all Australian households having an active NBN service by 2020, to generate sufficient revenue to repay the investment of building the network, this huge future benefit may become a huge future deficit for future generations,” Cleaver warns.