Technology platform and rollout debate will not solve traffic congestion or improve the user experience
MNF Group, Australia’s largest provider of hosted voice and data communications services has expressed disappointment that neither of the major political parties have addressed the inadequacies of the NBN’s commercial model in their Election policies.
While pre-Election talk has focused on debate around copper versus fibre and the speed of the rollout of the ‘super fast’ broadband network, both the Coalition and Labor parties have continued to ignore the flawed commercial model which is based on a high-cost usage charge model. MNF believes this legacy model, which is seldom used elsewhere in the world, is causing congestion, instead of as promised, solving the problem.
“Peak hour congestion has been around since the start of the Internet, however just as we thought this was going to be a thing of the past, it is instead going to get worse as you will be impacted not just by your neighbours, but your whole suburb,” MyNetFone Group Chief Commercial Officer Jon Cleaver says.
“At the same time this is happening, content has gone through the roof. Everyone is consuming data at the same time and so peak time is no longer just a few hours, but from 5-11pm as everyone is streaming a movie or sport.”
Cleaver says Australia’s Internet network is currently working along the same principal as cars on a highway in congested peak hour traffic.
“The answer is not increasing the speed limit. That does not reduce the congestion issue. It is about having more lanes. With the NBN, we have those lanes, but commercially they are not being made available. We have the pipes and have spent the money putting in the infrastructure, but we are asking end users to pay a per usage cost when we live in an unlimited world.”
This poor user experience will only drive people away from the NBN to alternatives. Given the NBN business model relies on reaching an unrealistic target of 80% of all Australian households having an active NBN service by 2020, to generate sufficient revenue to repay the investment of building the network, this huge future benefit may become a huge future deficit for future generations.
About MNF Group
MNF Group Limited, (ASX: MNF) is an integrated telecommunications software and network provider, specialising in IP voice communications. MNF Group was founded in 2004 and listed on the ASX in 2006, it has 66.9 million shares on issue and has operated profitably since 2009 paying dividends to its shareholders every six months since September 2010.
The Group operates a global IP voice network carrying over 6 billion voice minutes per annum, with Points of Presence (POPs) in Los Angeles, New York, Hong Kong, Singapore, London, Frankfurt, Sydney and Auckland. Domestically, the Group operates the largest, fully interconnected IP Voice network in Australia.
MNF Group has a reputation for quality, value and innovation, being the recipient of numerous awards including the Forbes Asia’s 200 Best Under a Billion (2014 & 2015), Deloitte Technology Fast 50 (2008, 2009, 2010, 2012, 2013, 2014) and CeBIT Outstanding Project Award (2013). MNF Group companies includes retail brands MyNetFone, Connexus, CallStream, PennyTel and The Buzz; and wholesale brands TNZI, Symbio Networks and iBoss.
For further information about MNF Group Limited please visit: http://mnfgroup.limited/