Papers by Katrina Johnson
Telecommunications Journal of Australia, 2009
One effect of the NBN plan will be to shift the 'digital divide' from the current unhappy contras... more One effect of the NBN plan will be to shift the 'digital divide' from the current unhappy contrast between dial-up access versus entry-level ADSL or ADSL+2 Internet access, to a new divide between 100 Mbit/s for the privileged 90% versus 12 Mbit/s for the more geographically isolated 10% of the population. The latter speed is so much better than most Australians have ever experienced, that few are yet concerned about the continuing disadvantageous asymmetry. Yet over the past 50 years, community expectations have shifted from having no TV whatever to B&W TV to colour (broadcast analogue signal) TV to digital TV, as a means of sharing mainstream community experiences (and not just those sporting events protected under 'no siphoning' legislation). By the time the NBN has been fully implemented, we can confidently expect that many online applications, including IPTV, will have grown in functionality to demand better than 12 Mbit/s user bandwidth-to the detriment of those on the wrong side of the digital divide. With this in mind, a very recent technology breakthrough permitting the range of FTTP to extend to 60 km offers a reduction in the expected 90:10 broadband imbalance to perhaps a 95:05 ratio or better. A paper by John Ellershaw et al in this issue demonstrates that if at least 20 Mbit/s user bandwidth is demanded for reasons of social equity, FTTP can be a cheaper solution-using aerial OF cable for the 'last 100 metres'-than terrestrial wireless access, out to that 60 km limit. SETTING THE WHOLESALE PRICING One of the first commercial problems for 'NBN Co' to solve will be setting the wholesale pricing. As the Federal Government is underwriting the whole investment, and is implementing the network as essential national infrastructure, there is no overriding need for the wholesale pricing to be set at a level that would give the government a direct commercial return on its investment-any more than for its investments in national roads and railway infrastructure. But it will be motivated to set the maximum price consistent with rapid take-up by its retail customers-Australia's more than 100 licensed carriers. John de Ridder's paper in this issue proposes a wholesale pricing strategy for the NBN that not only reconciles broadband investment incentives with affordability but also provides a partial solution to the net neutrality problem.
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Papers by Katrina Johnson