Advocate for Wholesale Customers Thursday 28 April 2016 @ 17:05

Symbio Networks CEO, Rene Sugo, has called for major changes to the NBN business model warning the current structure disadvantages small and medium sized-players and could damage the broader industry as a whole.

Speaking at the CommsDay Summit in Sydney, Sugo was critical of the decisions being made that do not consider all levels of the telecommunications industry.

“It’s not yet too late to save the small and mid-tier of the telco industry, and indeed save the NBN itself. The NBN must be removed from its dependency on CVC revenues.”

Bandwidth demand is being driven by the growth in streaming services like Netflix, Apple TV, Stan, Foxtel on demand, even the Optus rights for the English Premier League, and the increasing quality of video from SD to HD, to Ultra HD.

There is a content boom, and it relies on quality broadband access for consumers. The NBN model needs to change to allow providers to keep up with customer bandwidth demands and price expectations.

This was the second time this issue was addressed by Symbio in as many months, following the Tech Leader’s event in March where Sugo predicted that unless the CVC structure is abandoned, 'NBN Bypass' options will becme more attractive to consumers and lead to NBN failing to gain critical mass.

Since then, NBN have announced a new CVC model based on dimension based discounts (DBD). Symbio’s view is this is not good enough – the fundamental premise of the CVC construct, regardless of discounts, remains a congestion tax that will keep causing a poor user experience on the NBN network.

The demand for bandwidth is predicted to keep growing at a furious rate, and dimension based discount puts the whole industry on the back foot in reacting to demand growth. It hamstrings the ability for RSPs to deliver services that meet the ‘Minimum User Experience’ during busy hour.

Symbio will continue to be an advocate on behalf of the small and mid-size segment of the telco industry, and represent the interests of our wholesale customers.