Capacity capped: iiNet cuts off NBN satellite sales
18 November 2013
Just hours after CommsDay reported that NBN Co’s interim satellite service was approaching capacity, iiNet has reluctantly announced the immediate withdrawal of all satellite plans from sale – citing transmission capacity constraints.
NBN Co has ruled out providing more transmission capacity for the interim solution, citing prohibitive cost – despite impassioned debate from the satellite industry itself on this point – and electing instead to hold off until the launch of two dedicated higher capacity craft in 2015. But more than a year ahead of that launch, iiNet says a capacity crunch is already causing sharp service degradation on the interim solution and pulled its plans from sale – calling on the rest of industry to follow suit.
“At its peak, we had 500 customers signing up every week for our NBN satellite services. There is clearly a significant demand for higher quality broadband in remote Australia, and we’re absolutely gutted that we’ve had to withdraw this crucial service from sale,” said Malone. But, with 42,000 users already connected to the interim service, iiNet cited “severe service quality issues” stemming from transmission capacity constraints.
“iiNet is committed to providing high-quality broadband, so in order to meet our own customer service objectives, we could not continue to offer a service markedly below both our own and our customer’s expectations. During occasional peak periods the service was so slow as to be almost unusable,” said Malone.
“As more people
are added to the
network, quality
will only
decline further.
In the absence
of any action by
NBN Co to
increase
transmission
capacity, I call
on the rest of
the industry to
respect their
existing
customers and
also cease
sale,” he said.
Malone added that iiNet was ready to provide higher performance services for all qualifying customers as soon as NBN Co had commissioned its new satellites, and was also investigating opportunities to move any of its existing 8,000 satellite customers to faster wireless services being extended to remote and regional areas by its mobile wholesale partner, Optus.
“We recognise that the Federal and State governments are currently funding ‘uneconomic’ mobile networks in regional areas,” said Malone. “It would be in the best interest of these isolated communities to ensure open access to this crucial infrastructure – improving services and encouraging competition.”
Malone’s call further fuels the debate around open access to government-subsidised regional mobile service, initially kicked off by Vodafone.
Petroc
Wilton, CommsDay