Jul 24, 2008 5:11 PM | 6 Comments

You'll pay through the nose to watch videos like this if Telstra is allowed to rule the National Broadband Network with an iron fist, argues Adam Turner.

Australians can catch up on missed TV programs online as part of ABC TV's new iView video on demand service, but watch out for hidden costs.

The free service lets viewers watch selected ABC1 and ABC2 programs online up to 30 days after they screen on television, requiring nothing more than a web browser. The ABC's claims of "high resolution" are laughable, as the picture isn't even as sharp as standard definition digital television. By high resolution, they mean higher than YouTube - and it's still very watchable when viewed full screen on a 13.3 inch widescreen display.

Even at these resolutions the ABC recommends a minimum download speed of 1 Mbps, which means it's a fantastic service for those on the right side of Australia's digital divide.

Due to speed and bandwidth requirements, at least a third of Australia's broadband-enabled homes won't be able to watch iView, according to Australian Bureau of Statistics figures. This includes customers on entry level plans from most internet service providers, including Telstra Bigpond and Optus.

The problem lies not with the ABC or Australia's broadband infrastructure, but with the ISPs' monthly plans. iView chews through roughly 300 MB per hour, which is more than most entry level internet plans allow in an entire month. After exceeding their monthly limit, many Australians would pay their ISP up to $50 an hour in excess fees to watch iView.

Unfortunately providers such as Telstra, Optus and Dodo are clearly more interested in making a fast buck by ripping off naive Mums n' Dads than offering value for money. Many Australians get screwed by these ISPs, who prey on the fact customers don't know any better. It's the same with mobile data.

To help prevent viewers racking up large internet bills, iView is plastered with warnings to check your monthly plan and the site lists the size of each file before you press play.

Plans for a National Broadband Network won't necessarily resolve this issue if Telstra gets its way.

Like I said, the problem is with data pricing, not available bandwidth. Telstra would rather you buy content from Bigpond Movies than watch iView for free, which is why it gives its customers such measly download limits but doesn't count data used downloading content from Bigpond. It's a de facto walled garden - you don't need walls when you cut people off at the knees so they don't have a high enough data allowance to go anywhere else.

Meanwhile more progressive ISPs such as iiNet don't count downloads from the ABC, or from the Apple store, towards their customers' monthly limits. The ABC is looking to strike similar deals with other Australian ISPs, while other Australian content providers such as EzyDownload are looking to strike similar deals with ISPs.

If Telstra is allowed to rule the National Broadband Network with an iron fist, you can forget about such deals - you'll either buy multimedia content from Bigpond or pay through the nose for the extra data required to shop elsewhere.

The ABC's iView is a great idea but it's not going to flourish until we reign in Australia's data charges.

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terryo Jul 25, 2008 12:58 PM	I think you are drawing a very long bow to have us all believe that the only provider on the new NBN network will be Telstra. Please..... This is scare mongering at its worst and you know it. Telstra has repeately stated that it would operate an open network that would be available to all access seekers. It is nothiong but fancifull to say the least that Telstra would have the NBN network all to itself... Come on what fools do you take us all for. On the existing ADSL platform offered by Telstra to its wholesale customers there is choice and there is no requirement for competitors like iiNet, Internode, Optus et all to offer services on the same basis as Big Pond. The fact is they do not and with the NGN this would still be the case. There have been no formal proposal put by ANY of the would be players as to what services on the NGN would cost nor have there been ANY pricing strategies mentioned. Any talk about how much services on the new network platform would cost is complete conjecture until there are published RETAIL prices. Further to the pricing, there is the question of service offering . There has been nothing said by anyone as to what services will be provided on the NGN. There has been a blind assumption by anyone who has had the 2 cents worth to say that NGN will be just Broadband Internet. I think not. The actual service offerings are yet to be announced by all parties. Talk about putting the cart before the horse.
terryo Jul 25, 2008 12:58 PM	I think you are drawing a very long bow to have us all believe that the only provider on the new NBN network will be Telstra. Please..... This is scare mongering at its worst and you know it. Telstra has repeately stated that it would operate an open network that would be available to all access seekers. It is nothiong but fancifull to say the least that Telstra would have the NBN network all to itself... Come on what fools do you take us all for. On the existing ADSL platform offered by Telstra to its wholesale customers there is choice and there is no requirement for competitors like iiNet, Internode, Optus et all to offer services on the same basis as Big Pond. The fact is they do not and with the NGN this would still be the case. There have been no formal proposal put by ANY of the would be players as to what services on the NGN would cost nor have there been ANY pricing strategies mentioned. Any talk about how much services on the new network platform would cost is complete conjecture until there are published RETAIL prices. Further to the pricing, there is the question of service offering . There has been nothing said by anyone as to what services will be provided on the NGN. There has been a blind assumption by anyone who has had the 2 cents worth to say that NGN will be just Broadband Internet. I think not. The actual service offerings are yet to be announced by all parties. Talk about putting the cart before the horse.
gorbs Jul 25, 2008 1:59 PM	Terryo, Telstra may have repeatedly stated that they'll offer an open access network, they have also said the same thing about their current network while underhandedly disadvantaging competitor access. You also draw comparisons to the existing ADSL network and how it fosters diversity in market offerings and competition. This is the very same network that Telstra claims must be disbanded (or left to rot) with the build of the NBN. But getting back on topic, Adam should be applauded for bringing to light the exhorbitant costs on crippled plans offered by players such as Telstra. I've noticed a welcome trend recently in the popular media of the techno-journalists beginning to sing this song. Hopefully, your mum and dad users will begin to realise they're being shafted.
EpaL Jul 25, 2008 2:16 PM	Terryo, So you actually think the Telstra will miraculously start playing fair with their competitors and start offering value for money to their retail consumers after nearly 15 years of doing exactly the opposite. Have you been living under a rock? Telstra continually show their disdain for competitiors and consumers alike by gouging, obstructing and generally doing everything they can to extract every cent from the Australian public. As a public company that is their right but they continually go too far and that just proves they cannot be trusted to own/build the NBN.
Adam Turner Jul 25, 2008 10:54 PM	@terryo I think you need to cut back on the Telstra kool-aid. If Telstra builds the NBN it might be "available" to all access seekers, but under what terms? After looking at Telstra's track record, nobody in their right mind could believe that Telstra could be trusted to run the NBN as it sees fit.
brokey Jul 26, 2008 12:19 PM	Glad I am with iiNet...I just hope for everyone else who is with an ISP and is able to get ADSL2+ that a deal can be struck where their d/ls aren't counted... And that in the near future someone does see fit to remove the power that Telstra have and take control of the network argument...the only ones being hurt in this fight are the people that want faster and cheaper access..