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Ovum Tells NBN Co: Drive High Bandwidth – Or Lose Customers

SYDNEY – With most NBN fixed-network customers opting for the lowest bandwidth offering, 25Mbps, the Ovum research group says that in the long term NBN Co must persuade users to take higher bandwidth services, or lose customers to wireless alternatives.

The suggestion is one of a series of recommendations contained in a report from Ovum, commissioned by Nokia, and titled A Vision for NBN Evolution.

According to Nokia, the report identifies technologies and methodology for NBN Co and its government shareholders to consider a future beyond the current mass national deployment phase. It examines a number of use cases that would demand much higher bandwidth than available from NBN Co’s current technologies.

According to Ovum principal consultant Stephen Myers, broadband users are already looking to 4K and 8K as the main potential ways to improve their video experiences – and virtual and augmented realities are emerging as potential use cases.

“Vendors suggest VR may require several hundred megabits per second to support high quality VR content … and 200 to 1000Mbps for 6 DoF (degrees for freedom) video,” Myers said.

However Ovum is scathing of overseas networks that have invested to provide gigabit speeds. It says launches of these services have largely been a result of marketing arms races in other markets.

“The killer application requiring gigabit speeds remains elusive; the price premium from these services fails to justify the capital investment required, and the deployment of gigabit services has been largely product positioning,” Ovum said.

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