In 2010, the National Broadband Network (NBN) announced wholesale pricing of $24 for an entry level 12Mbit connection (and $27 for a 25Mbit connection). Don Campbell brings to our attention (letters 8/3) the $24 cost and Telstra’s entry level retail price of $73.
However, to compare these two numbers is like comparing “apples” with “apple pie served in a coffee shop”. Firstly, the $24 is a wholesale price, not a retail price. Secondly, the Telstra product quoted is a 25Mbit service (not a 12Mbit service) and finally the Telstra product includes a $22.95 basic telephone service. In fact, the cost of Telstra monthly plans for their ADSL service is exactly the same as their NBN plans for comparative downloads, even though the NBN plans provide faster downloads.
It is also worth noting that the ACCC recently set the maximum wholesale price of ADSL services at $25.40 for metropolitan, and $30.80 for regional areas. The difference in this wholesale cost between metropolitan and regional represents the additional cost required to provide ADSL services in regional areas. The good news for all of us that live in regional Australia is that the underlying wholesale price of the NBN is the same whether you live in Port Macquarie or Paddington.
Telstra is only one retail supplier of NBN services and I encourage you all to shop around.
Peter Alley
Labor Spokesperson for Lyne
