itnews: difficulty in selling NBN ‘quality’

Vodafone says too hard to sell NBN ‘quality’

A recent ITNEWS article written by Ry Croizer discusses Vodafones claim in finding it “hard to persuade customers to sign up to NBN services based on differences in service quality”.

“Chief strategy officer Dan Lloyd told a parliamentary committee hearing in Sydney that, short of NBN Co “readjusting” its wholesale price and service construct, ISPs would have “relatively little choice but to compete on price”. Lloyd said ISPs were scared to buy more connectivity virtual circuit (CVC) backhaul from NBN Co because the costs had to be passed on to customers. There was concern that the relative improvements in the amount of bandwidth available still may not be enough to meet customers’ expectations for the service they had bought.”

Loyd highlights a very important point that many ISPs can relate too, “When you’re trying to sell a service with a theoretical maximum of 12, 25, 50 or 100Mbps, to then try to communicate to customers that you’re differentiating on the minimum throughput at the most contended times of capacity on the network of say 1.5-2Mbps, it’s simply not something that consumers can understand. ”

Read the full article by ITNEWS here