Damian Ivereigh, the chief executive of the Launceston-based Launtel, said in a blog post that calculations based on the average spread of plans showed that the performance boost would be in the region of 2.5% and certainly not 20% as many might think.
The increase in CVC for 100Mbps plans was announced on the same day that NBN Co said it would be reviewing its wholesale charges and offering RSPs the chance to comment on them before making any changes.
"Let’s put some example numbers into this. If your RSP has 1000 services in the pooled CVC you are connected to, let's assume that your RSP has the typical spread of speeds, which is, 90% are on 50Mbps and below and 10% are on 100Mbps and above," Ivereigh said.
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"So currently the total CVC is 900 X 2 + 100 X 2.5 = 2050
"After the change the total CVC is 900 X 2 + 100 X 3 = 2100
"So the increase is just a little under 2.5%. Not something to get too excited about!"
He said a "good ISP" would already be buying extra CVC over and above the amount included in the bundles, something that is called overage.
"This overage costs $8/Mbps, so in the above example the RSP will see a reduction in their costs of $400 – 40c per service. Again, not something to get too excited about.
"If your RSP is not buying overage (which may be why you are seeing congestion), then you will see a 2.5% reduction in congestion (whatever that means!) as they increase the CVC size."
Ivereigh said what concerned him was that NBN Co was in a game of "chicken" with the large RSPs who were essentially holding their users to ransom by constraining their CVC to just the included bundle amount and waiting for the media to build up the blame on NBN Co for the problem.
"Since 2017, NBN has put customer experience (or 'CX' as they call it) high up their priority list, we will see whether it is above getting revenue!" he added.