Posts Tagged‘cheap’

Broadband Has to Remain Expensive Because…NBN? Come on…

In terms of broadband Australia doesn’t fair too well, ranking somewhere around 58th in terms of speed whilst being among some of the most expensive, both in real dollar terms as well as in dollars per advertised megabit. The original FTTN NBN would’ve elevated us out of the Internet doldrums however the switch to the MTM solution has severely dampened any hopes we had of achieving that goal. However if you were to ask our current communications minister, the esteemed Malcolm Turnbull, what he thought about the current situation he’d refer you to a report that states we need to keep broadband costs high in order for the NBN to be feasible. Just like with most things that he and his department have said about the NBN this is completely incorrect and is nothing more than pandering to current incumbent telcos.

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The argument in the submission centers around the idea that if current broadband prices are too cheap then customers won’t be compelled to switch over to the new, obviously vastly more expensive, NBN. The submission makes note that even a 10% reduction in current broadband prices would cause this to happen, something which could occur if Telstra was forced to drop their wholesale prices. A quick look over the history of the NBN and broadband prices in Australia doesn’t seem to support the narrative they’re putting forward however, owing mostly to the problems they claim would come from a price drop already happening within Australia.

You see if you take into consideration current NBN plan pricing the discrepancies are already there, even when you go for the same download speeds. A quick look at iiNet’s pricing shows that your bog standard ADSL2+ connection with a decent amount of downloads will cost you about $50/month whereas the equivalent NBN plan runs about $75/month. Decreasing the ADSL2+ plan by 10%, a whopping $5, isn’t going to change much when there’s already a $25/month price differential between the two. Indeed if people only choose the cheaper option then we should’ve seen that in the adoption rates of the original NBN, correct?

However as the adoption rates have shown Australians are ready, willing and able to pay a premium for better Internet services and have been doing so for years with the original FTTP NBN. The fact of the matter is that whilst ADSL2+ may advertise NBN level speeds it almost always delivers far less than that with most customers only getting a fraction of the speeds they are promised. The FTTP NBN on the other hand delivers exactly the kind of speeds it advertises and thus the value proposition is much greater than its ADSL2+ equivalent. The MTM NBN won’t have this capability unfortunately due to its mixed use of FTTN technologies which simply can’t make the same promises about speed.

It’s things like this that do nothing to endear the Liberal party to the technical vote as it’s so easy to see through the thin veil of political posturing and rhetoric. The facts on this matter are clear, Australians want better broadband and they’re willing to pay for it. Having cheaper options aren’t going to affect this, instead they will provide the opportunity for those who are currently locked out of the broadband market to get into it. Then for those of us who have a need for faster Internet connections we’ll happily pay the premium knowing full well that we’ll get the speeds that are advertised rather than a fraction of them. The sooner the Liberal party wakes up and realises things like this the better, but I’m not holding out any hopes that they will.

India’s Mars Orbiter Arrives Successfully.

When you think of space faring nations India probably isn’t one of the first to come to mind but they’re fast becoming one of the big players in terms of capability. Their space agency, the Indian Space Research Organisation (ISRO), began back in 1975 and has primarily focused on developing both launch and satellite capabilities. They made headlines back in 2008 with Chandrayaan-1 which was their first satellite to visit another celestial body. Every year since then has seen India launch multiple satellites every year, with the vast majority of them blasting to orbit aboard their very own Satellite Launch Vehicle brand of rockets. Last week saw them tick off another incredible milestone: their first interplanetary mission arriving successfully at its destination.

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The Mars Orbiter Mission (or Mangalyaan) is a comparatively small craft, weighing in at just on 500 kgs with only 15kg of that being dedicated to the various payloads it’s carrying. It’s primarily a technology demonstration mission, designed to provide a shakedown for the various systems required to maintain an interplanetary mission. Thus the payload of the mission is relatively simple, consisting of some atmospheric and particle sensors along with your standard imaging affair, although it does have the rather interesting capability of being able to radically change its orbit over time. Just the fact that India has joined the rather exclusive club of nations that have sent craft to Mars (3 total, now) would be noteworthy in of itself but there’s one more thing that makes MOM noteworthy.

The cost.

A typical Mars mission usually costs on the order of hundreds of millions of dollars, usually tickling the billion dollar mark when all things are considered. The Phoenix Lander, for instance, cost about $386 million and was considered to be quite cheap as it reused a lot of technology from other projects. MOM however was done for a total budget of $74 million including launch costs making it the cheapest interplanetary mission by any nation to date. A lot of this comes down to the simplicity of the mission however a big part of it is the fact that their launch vehicle costs around $19 million per launch, a cost that rivals even that of SpaceX’s Falcon launch system. If ISRO is able to keep their costs at this level there’s every chance that other nations will look to them to provide launch capabilities like this in the future.

Even though MOM is a simple craft it has the capability to provide extremely useful data like its predecessor Chandrayaan-1 did. The instruments might be few in number but the data they provide will function as a validation point for all the missions that have come before it, ensuring that the models we’ve developed for Mars are still valid. Having another set of eyes on Mars means that we’ll be able to catch many more of the geological phenomenon in action that we’ve seen in the past which will provide us even more insight into how its environment is changing, even today.

It always amazes me to see how rapidly space capability is being developed not only by private industry but also nation states. Exploring space is an incredibly expensive affair, one that seemingly doesn’t contribute to the nation’s economy directly, but the benefits always outstrip any cost that follows them. For India the ROI is going to be amazing as they’ve built a capability that took other nations decades and several billion dollars to achieve. I’m very excited to see what they accomplish next and whether or not they can continue the tradition of doing it far cheaper than anyone else.