Monday, June 21, 2010

NBN Early Pricing analysis - Value WATCH (June 2010)









I have analysed the early NBN pricing between Exetel, iiNet and Primus using my Value Watch methodology.

The McKinsey Report (https://wiki.dbcde.gov.au/dashboard.action) advises pricing for penetration  - see Exetel Tas NBN prices http://www.exetel.com.au/residential-fibre-pricing-tasmania.php starting at $0 plus $2/Gb for basic (25mbps) to $50 plus $0.75/Gb for fast (100mbps). Mckinsey advise wholesale price around $30 for entry level broadband (25mbps; unlimited Gb) plus $5 for unlimited calls. Equates to about $55-60 retail entry level. But three other ISPs are pricing NBN like a premium service: iiNet, Primus $50 for 5Gb; $90 for 15 Gb. I know who I would prefer. I will attach my comparison of the initial NBN prices below.

See graphical comparison here.... http://www.mediafire.com/file/wdyj0qkzmbe/NBNvalueWatchJun2010.pdf...

Comments welcome below. The Value Watch compares Price per month and Price per Gb. Greater value is when both these indicators are minimised. Exetel shows a clear value lead over iiNet and Primus in these early stages.

Update: Exetel revised their prices up from $1.50 / Gb to $2/Gb and monthly access down from $10 to $0. Faster plans had no changes. Will have to update analysis.... Revised graphs with updated Exetel prices here - http://www.mediafire.com/file/htfdqy3m4j2/nbnJune2010b.pdf