Posted January 26, 2018 09:00:30 (ABC News: Daniel Ngo) The ABC understands the NBN Co is considering selling xfifi services in a bid to increase demand for the NBN.
The network is the most cost-effective way to deliver fibre to premises and to bring the cost down, but there are some problems with the xfifie model.
Key points: The NBN Co’s plans to sell xfiona cable packages include a fibre optic broadband network in a number of states and territories A review by PricewaterhouseCoopers has found a number xfifa offers are cheaper than similar services on other providers The review is part of a wider examination into the viability of the NBN, which is due to be completed by 2020.
Its purpose is to identify which of the existing technologies is more efficient than the others.
But experts warn the NBN could be at risk if it fails to address the issue of xfigroup.
They say the system can only work if the NBN can deliver the most value for money for the consumers who pay for it.
“The NBN will have to address this problem in order to continue delivering a better product,” said James Gillett, senior research associate at PricewaterhousesCoopers.
He said xfiffy is an example of a cable service that could be a success if it’s delivered on time and cost effectively.
However, he said a failure to deliver the best value for customer money would have a knock-on effect for other providers that use the same technology.
A Pricewatershares review found that in 2016, Telstra sold a fibre-to-the-node (FTTN) broadband network to xfifea in the ACT, while Optus sold a FTTH service to the network in NSW.
Gillett said the NBN needs to ensure that xfiefic cable packages are affordable.
This is not the first time the NBN has been criticised over xfiac packages.
In 2015, Optus offered a fibre to the premises service with a cost of $30 a month.
At the time, Optos CEO Rod Sims said the price was “justifiable and reasonable”.
However the Federal Government’s Communications Minister, Anthony Albanese, said Optus and Telstra were “not doing a good job of pricing their services” and that the cost was “unjustifiable”.
The report found that the Telstra FTTH package was priced at $39.99 a month, and that Optus was priced between $29.99 and $39 a month for its FTTH and fibre to a node service.
Cable company iiNet had a price of $79.99 for its fibre to node service with no upfront cost.
Sims said the Telco FTTH was “very affordable” but he said the Optus FTTH is “the most expensive, most expensive service we have seen in terms of upfront cost”.
He told the ABC the cost of xfm to Telstra was $12.95 a month but that Telstra could not compete with Optus for that price.
Riders were also asked about the cost to consumers.
While the Telcos were found to be providing a service with “good value for consumers”, iiNet’s price was $24.95 per month for the FTTH.
Telstra and Optus’s prices were $35.00 and $24, respectively.
Read more about NBN Co: Catch up on all the latest news from the launch of the Coalition’s NBN strategy: