Where is the demand?

see http://www.computerworld.com.au/article/609824/broad-industry-support-nbn-pricing-revamp-bill-morrow-says This is why “goldplated” fibre is not needed everywhere just over half .. using 25/5Mbps connections 31% are using 12/1Mbps 13% are using 100/40Mbps 4% are using 50/20Mbps Here’s my psychology breakdown 25/5 – “That’s fast enough to watch NetFlix and I never have buffering problems, I want plenty of download cap” 12/1 – “Internet is... View Article

see http://www.computerworld.com.au/article/609824/broad-industry-support-nbn-pricing-revamp-bill-morrow-says

This is why “goldplated” fibre is not needed everywhere

  • just over half .. using 25/5Mbps connections
  • 31% are using 12/1Mbps
  • 13% are using 100/40Mbps
  • 4% are using 50/20Mbps

Here’s my psychology breakdown

  • 25/5 – “That’s fast enough to watch NetFlix and I never have buffering problems, I want plenty of download cap”
  • 12/1 – “Internet is expensive, isn’t there any plan cheaper?”
  • 100/40 – “Here have all my credit cards – Aww, yeah, let me do a speed test! That will suit my curved TV nicely.”
  • 50/20 – “I closed my eyes and picked a plan”

Those who pick the highest plan have plenty of money and want the best. They are technomotivated, and they are most likely journalists and IT nerds, but a lot of them are simply rich. These people think they know what we need.

The fact that there’s a huge gap between 50/20 and 25/5 proves both, that 25/5 is enough, and also that those picking the highest have simply done that, picked the highest, good for them.

But my biggest gripe is with the entry-level prices. 31% are choosing 12/1 speed. They really should have 25/5 (and most can get it), but they’re opting for 12/1 because of the price.

Hopefully NBN’s review of pricing will see a drop in the entry-level price, to make 12/1 even cheaper for those battlers.

It would be interesting if NBN made a service available at 5/1 for $5 per month. I wonder what the uptake would be…

Attribution: For featured image – https://www.flickr.com/photos/elkinator/6878377985

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