wdoa: Don, showing my ignorance, but I really do not know what your last post means :-)
It really was just a 'shop' comment back at the likes of Steve who I am sure will know about CVCs, but....
The wholesale pricing for the NBN is:
AVC - $24 starting price - 12/1mbit
You get a 150k Class 4 hand over with that (ADSL in .nz has been running at 45k, so this isn't to bad...)
However if the RSP (ISP) wants more capacity then they have to buy more "CVC" which costs $20 per Mbit.
You made mention of FetchTV using ~4.5Mbit/s.
So, while it's running and pulling that, the RSP has to have 4.5mbits of CVC space to give you.
Now that's not a problem when people are only bursting data. However once we got to the point where lots and lots of people are all using FetchTV and the like, all at once, then the RSP will need much more than 150k.
Because of the nature of TCP, they won't need 10 * 4.5mbit for 10 customers. So it's not like they'll have to add 4.5 * $20 to their cost. But it also won't fit into 150k either.
ISPs currently use their own transit to their own dslams where they can and there is more going in all the time. CVC is one of the issues that the industry have been whinging about.
Compare this to .nz's UFB, the govt has said each 'AVC' will have 5mbit of CIR on it and the NNI hand over price is less than the .au NNI and there is no CVC charge at all.
So sure, if the NBN gets to you, once it ramps up, then it could all be a bit pile of fail :)
But who knows, it's all very early days.
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