The report says: "The costs related to connecting to the network, and using high speed broadband services, have been identified by many parties during our study as a critical factor. As these costs (non standard connections, re-wiring, upgrading equipment and subscribing to the services) appear to be significant, they are likely to reduce the initial uptake of high speed broadband services for both consumers and SMEs."
In Australia NBN Co will cover the cost of installing the fibre and the fibre terminating unit at the entry point of the current copper telephone cable but customers will be responsible for the technology needed to access the increased bandwidth from elsewhere in the home: broadband over powerline, cat5 cable and WiFi variants are all possibilities.
However the Commerce Commission's report has identified this as one barrier to uptake. In New Zealand the situation is further complicated because different companies are responsible for its version of the NBN, the Ultrafast Broadband Network (UFB) in different areas, and they have different rules. Chorus has the majority of the country and says it will extend the fibre up to five metres from the entry point at no charge. Other local fibre companies are offering 10 metres.
The Commerce Commission says: "There is no data available on the number of customers who are likely to require non-standard connections. Vodafone commented - in its submission - that less than half of customers in its trial of UFB services have been standard connections.
"If the number of non-standard connections is as high as Vodafone suggests, the impact will be substantial. If residential customers with non-standard connections and business customers have to bear the connection cost, the uptake of high speed broadband services might be hindered, especially as there is a perception that residential connections will be free.
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