The NBN discussions over the last couple of weeks got heated when the CEO of nbn, Bill Morrow suggested RSPs aren’t offering gigabit plans to customers because there’s no customer demand for it. Morrow went on to site international examples, however one of the largest ISPs in America, AT&T has released figures about their customers and say 30% of them are choosing 1Gbps plans.
The contradiction gets even worse when we look at the exact quote Morrow gave while delivering last year’s results.
“The thing I want to point out is that we did some research of companies overseas — Google, Comcast, AT&T and so on — to ask about their Gigabit per second services and asked whether there was a lot of uptake. The answer was no, but they offer them as a market competitive element.
Even if we offered it for free, we see the evidence around the world that they wouldn’t use it anyway … we know there are things on the horizon that are going to increase the need for further demand.
AT&T Chief Financial Officer, John Stephens, told investors during its 2016 Q4 earnings call, that a growing base of customers are taking this top tier. This raises the question, is there something unique to the United States internet needs that would mean that same demand wouldn’t be also be found in Australia.
The answer is of course no. Naturally there are differences in pricing between the two countries, but the need and want for the fastest possible internet speeds available on the technology is the same regardless of your country code.
“Thirty percent of our customers are taking a Gig,”