Date post: | 21-Jan-2018 |
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Technology |
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• NBN’s goal was to create more competition
• But that didn’t happen
• Challenger RSPs (CRSPs) represent just 6%
• Are 4 players enough for competition?
“We have plenty of retailers already selling the product and you can have too much competition that it becomes unhealthy.”1
Telstra
TPG
Optus
Vocus 6%
NBN Market Share2
Challenger RSPs
The NBN landscape
31https://www.itnews.com.au/news/nbn-chief-tells-vodafone-to-accept-prices-or-walk-4708162NBN services in operation RKR Disclosure tables - 30 June 2017
94%
Competition & Innovation
Is 4 enough?
• ACCC stopping mergers at the big 4 indicates a minimum
• High barrier to entry, new entrants need a big cheque book
• It’s not the number, it’s the type
4 might look competitive, but what happens to innovation?
• Challenger RSPs drive innovation and growth
• Lack of this results in increased regulator intervention
Consumer loses out
Slide 4
The problem
Industry and regulators comfortable and complacent
Only need to talk to the big 4 about issues
Who was at the table to represent the CRSPs?
Do the big 4 represent their wholesale or retail interests?
Meanwhile, world ranking continues to drop
Slide 5
The NBN tax
NBN has to provide a ROI• Pricing model not working• Call it what it is: an NBN tax
Morrow is tasked with collecting the Government’s tax
RSPs are the fall guy, expected to collect the tax from consumers
BUT• MNF retail already tried charging more• We learnt the market doesn’t want to pay
6
Taxman
NBN CEO
6%
CRSPs
Meanwhile
CRSPs are stuck in a vicious cycle
> Can’t access 121 POIs
> Selling a hybrid product
> No control over network
> Poor quality end user experience
> Complaints and regulator monitoring
> But we can’t go direct to improve
7
121
POIS
Hybrid product
Lack of control
Poor quality
Regulator
monitoring
It’s all so easy to blame the RSP…
… but is it a level playing field?
8
Direct with NBN
Reseller
Advertising speedsNBN sync reports for FTTN/FTTB X
Managing Service PerformanceNBN CVC SCH report (real time) X
Making NBN EasyDirect Access to NBN Service Management and Technical Account teams
X
Increasing Uptake with Speed and EaseDirect B2B online access X
The NBN race
Was supposed to be about competition and speed
We got invited
We trained for a speed race
We turned up to the start line…
9
We fell at the first hurdle
…Turns out it was a hurdles race1. 121 POIs
2. No dark fibre
3. CVC cost structure
4. NBN tax
The hurdles are getting bigger!
The
Big 4
Another hurdle
Lack of NBN accountability to TIO is crippling the industry
• Double-handling of complaints
• Adding overheads
• Trashing RSP reputations
RSPs have no control over NBN showing up for appointment times
NBN SLAs but no repercussions if not met
Consumers should be able to deal directly with NBN on connection issues.
There’s no accountability. 11
ACCC trying to help
Tell consumers average evening peak speeds
Confusing & doesn’t solve underlying problem
Mandatory reporting adds complexity and cost
• Disproportionate cost to CRSPs
• Reporting on something outside their control
The hurdles continue to get bigger
What else is next?
12
The original NBN mandate
The vision1. Level playing field
2. Increase competition
3. Affordable Broadband for all
4. Innovation engine
5. Digital economy
What happened1. 121 POIs
2. Increased hurdles
3. CVC and IRR
4. Usage based CVC
5. The NBN
13
Fix the CVC and POI issue and the market will adjust
What should we be doing?
Give the market opportunity and CRSPs will drive change
NBN is supposed to be Australia’s most high tech company BUT
• I can order an UBER and see exactly where my driver is
• NBN spent $700K doing a logo refresh…
… but they can’t do a simple appointment tracking app or get their techs to appointments on time.
Let’s shift NBN’s focus
• Less: thinking about tax collection & pricing models
• More: Service delivery and high tech solutions
14
What should we see from NBN?
Bill 4.5/5
Ford Transit
ABC 123
Order NBN
Your NBN tech arrives: 14th Sep 2017 10:00AM380 George St, NSW 2000
Your Invoice
10th Oct 2017
$150Due: 1st Dec 2017
Your tech summary:
-----------------------------------
Please rate your
experience
15
FTTN HFC FTTP FTTB
What are we doing to help?
Fostering competition
• We are innovating
• Provide tools to enable CRSPs to compete in the market
• Provide risk free, all included plans
• iBoss billing (we use it, you can too)
• Support open source
• Industry leading automated porting
16
Call to arms
It’s not too late to fix and restore the original NBN vision
But, Government needs to act soon
Remove the barriers of going direct
• Aggregation of POIs
• Fix CVC once and for all
MNF Group and others responded to the NBN consultation paper - Pricing Evolution
Second Consultation (PR143)
• Listen to the CRSPs
• Don’t just pay lip service
17
Our commitment
Aggregate the POIs and remove CVC and we’ll invest
and innovate
• Direct integration will give us control
• We will be able to offer a quality service to consumers
• Competition will increase as other CRSPs will do the
same
• NBN becomes a sprint race again
18