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

Why Choosing the Right Bollard Supplier Matters for Australian Businesses and Public Spaces

From busy CBD streetscapes to sprawling warehouse loading docks, bollards have become one of the most essential safety and security fixtures across Australia. Whether protecting pedestrians from veh...

Daily Bulletin - avatar Daily Bulletin

Why Modular Content Is Transforming Modern Marketing Teams

Modern marketing teams are expected to produce more content than ever before. They need to support websites, landing pages, email campaigns, social channels, product pages, sales enablement material...

Daily Bulletin - avatar Daily Bulletin

Everything You Need to Know About Getting Support from Optus

Whether you've been an Optus customer for years or you've just switched over, at some point you'll probably need to contact their support team. Maybe your bill looks different from what you expected. ...

Daily Bulletin - avatar Daily Bulletin

The Marketing Strategy That’s Quietly Draining Sydney Business Owners’ Bank Accounts

Sydney businesses are investing more in digital marketing than ever before. The intention is clear. More visibility should mean more leads, more customers, and steady growth. However, many business ...

Daily Bulletin - avatar Daily Bulletin

Why Mining Hose Solutions Are Essential For High-Performance Industrial Operations

In environments where the ground itself is constantly shifting, breaking, and being reshaped, every component must be built to endure. Mining operations are among the most demanding in the industria...

Daily Bulletin - avatar Daily Bulletin

The Reason Talented Teams Underperform

If you’re in business, you might have seen it before. A team of capable and smart people just suddenly slows down, and things start spiraling out of control. On paper, everything looks perfect, but ...

Daily Bulletin - avatar Daily Bulletin

Why More Aussie Tradies Are Moving Away From Paid Ads

Across Australia, a lot of tradies are busy. There’s no shortage of demand in industries like plumbing, electrical, landscaping, and building. But being busy doesn’t always mean running a smooth or...

Daily Bulletin - avatar Daily Bulletin

Why Careers In The Defence Industry Are Growing Rapidly

The defence sector has evolved far beyond traditional roles, opening doors to a wide range of opportunities across technology, engineering, intelligence, and operations. This is where defense industry...

Daily Bulletin - avatar Daily Bulletin

Strategic partnerships to enable global acceleration for Aussie fashion brands: SHEIN Xcelerator launches

SHEIN Xcelerator is introducing a more agile, demand-led operating model, allowing brands to scale while retaining control over creative direction and identity. For fashion brands, the pressure t...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

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...

5 Signs Your Car Needs Immediate Attention Before It Breaks Down

Car problems rarely appear without warning. In most cases, your vehicle gives clear signals before...

Ensuring Safety and Efficiency with Professional Electrical Solutions

For businesses in Newcastle, a safe and fully functioning workplace remains a key part of day-to-d...

Choosing The Right Bin Hire Solution For Hassle-Free Waste Management

When it comes to managing waste efficiently, finding the right solution can save both time and eff...

Why Cleanliness Is Critical In Childcare Environments

Children explore the world with curiosity, often touching surfaces, sharing toys, and interacting ...

What to Look for in a Reliable Australian Engineering Partner

Choosing an engineering partner is rarely just about technical capability. Most businesses can fin...

How to Choose a Funeral Home That Supports Families with Care

Choosing a funeral home is rarely something families do under ideal circumstances. It often happen...

Why Premium Coffee Matters in Modern Hospitality Venues

In hospitality, details shape perception long before a guest consciously evaluates them.  Lightin...