Comparing the Costs of a Private Fibre Network with the NBN

Fibre Optic Networks

In our previous blog article, we discussed what a private fibre network is and why so many Australian businesses are opting for them over the NBN. In this article, we will delve further into our comparison between the two different options with a discussion of the costs associated with a private fibre network, helping you decide which option is right for you and your business.

Private Fibre vs NBN: Costs

Typically, the monthly costs of these business fibre products are much more than the comparative NBN residential or business plan, not only in terms of monthly cost, but also because you need to pay for a private installation, rather than get it installed for ‘free’ by NBN… eventually…

This cost difference is due to a few different reasons:

  1. Contention ratio: Contention ratio basically means how many people are sharing the same line. On standard ADSL and NBN lines, your line will be shared, reducing the speed. On a private fibre connection, the line to the exchange will be solely yours, and this is represented in the price.
  2. Direct Fibre: We discussed this briefly under the Fibre 400 section in our last post. When you have a direct fibre line to the building, installation cost is higher, but speed doesn’t degrade, unlike NBN Fibre to the Node (FTTN) connections that can slow down the further you are from the nearest node box.
  3. Competition: NBN lines are intended to be rolled out everywhere and leased to any ISP, meaning more competition and lower prices. Some private fibre networks aren’t being leased, which means if it’s the only fibre alternative in your area, you may be charged a hefty sum. In areas with multiple fibre networks, such as inner-city areas, this is less of a problem, and as more networks pop up, expect prices to fall.
  4. Data: Nearly all business private fibre plans come with unlimited data as standard, which will inevitably increase the price, especially considering larger businesses are more likely to take advantage of unlimited data than small businesses or individuals.

Due to these characteristics, private fibre solutions are currently catered more to businesses that are already on multiple ADSL connections or the highest NBN plans available. There’s certainly no price advantage to be had compared with NBN in terms of speed per dollar yet, so if you’re finding that your current NBN plan is fine, or that a 100Mbps NBN plan would be more than sufficient, we don’t suggest making the switch just yet.

However, if your current internet connection does not meet your speed requirements, then you may actually be losing money in the form of lost productivity. In these cases, making the investment in a private fibre solution may be your best option, especially if you do not want to relocate your business.

What’s Right for My Business?

Ultimately, the fibre network you choose (or whether you should choose one at all), will depend on the size of your business and your internet usage. The process of finding the right one, or even knowing what product to get can be daunting task, given how complicated telcos seem to make it all. Six Star Communications have independent, in-house consultants that will sit down with you and discuss the needs and intended growth of your business, to help you decide the best internet solution for you, be it NBN or a private fibre network. Give us a call on 1300 232 199 to speak to one of our consultants today.