The Vertigan Report into the NBN has found in favour of Malcolm Turnbull’s Multi-Technology Mix NBN model, citing a higher net benefit in MTM.
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Specifically as per iTnews, the report concludes that over the period 2015-2040, the net benefit of an MTM model would be $17.9 billion compared to a net benefit of only $1.8 billion for FTTP over the same period, primarily due to both the higher cost and slower speed of the rollout under FTTP.
FTTP only benefits, according to the report where “there is very rapid growth in the demand for high speeds and no upgrades are allowed in the MTM scenario.” However the report does not include the cost of upgrading the MTM scenario in its calculated figures.
The report also models the expected broadband speed requirements up to 2023, reporting that as per its assumptions, the median household of two people would require bandwidth of 15Mbps, with only the top five per cent of households requiring speeds of 43Mbps or more.
It’s cited as an example of the benefits of the MTM model due to the ability to roll out lower speed tiers at an accelerated rate compared to FTTP, on the basis that consumers would value an increase from lower levels of download speeds more than they’d value higher tier speeds.