Dumb question - why is naked DSL more expensive?

Forums › New Zealand Broadband › Dumb question - why is naked DSL more expensive?

nate

6473 posts

Uber Geek

Retired Mod

Trusted

Lifetime subscriber

#101858 10-May-2012 15:08

I'm sure this is discussed somewhere, but why is there an extra charge on naked dsl? Surely no phone line, and you should only pay for the "internet" part.

NonprayingMantis

6434 posts

Uber Geek

#622905 10-May-2012 15:12

Simplified version:

the price for DSL assumes that somebody else is already paying to rent the copper for the purposes of providing a landline, and the broadband can piggyback of that, only paying to acces the equipment in the exchange.
With Naked DSL nobody is renitng the copper for the homeline, so the person who is selling the DSL needs to pay for it too.

Bung

6477 posts

Uber Geek

Subscriber

#622906 10-May-2012 15:13

You may not have a phone line but you still use a line. Try getting electricity without a line charge.

mattwnz

20141 posts

Uber Geek

#622908 10-May-2012 15:14

nate: I'm sure this is discussed somewhere, but why is there an extra charge on naked dsl? Surely no phone line, and you should only pay for the "internet" part.

Essentially someone still has to pay for the line and all the maintenance associated with it, which is quite a big cost when something needs fixing on it.

nate

6473 posts

Uber Geek

Retired Mod

Trusted

Lifetime subscriber

#624871 14-May-2012 14:13

Thanks guys for all your answers :)

Ragnor

8218 posts

Uber Geek

Trusted

#624924 14-May-2012 15:13

A better question: Why has the ComCom set regulated pricing for the line rental component so high and the POTS/landline component so low.

Australia and Europe seem to have much large differences between naked and landline + dsl.

Lurch

1061 posts

Uber Geek

#624927 14-May-2012 15:19

I'd have to disagree about Naked DSL being more expensive. Being with vodafone I'm saving $45 a month over other plans.

$55 60GB + $11 VOIP

Of course you need to be in the red zone to get the $10 a discount a month and have a cellphone on contract. But I have a work phone for that.

Loving vodafone :-)

Ragnor

8218 posts

Uber Geek

Trusted

#624931 14-May-2012 15:22

Yeah naked DSL is not more expensive, even using Chorus equipment/services it's $10-15 cheaper wholesale.

Vodafone can offer a lower price in the red zone because they are using their own gear instead of paying Chorus, also they are taking a hit of the raw profit on the DSL plan by cross subsiding from on account mobile - sort of a combine services/loyalty discount.

Equinox IT

Cloud spending continues to surge globally, but most organisations haven’t made the changes necessary to maximise the value and cost-efficiency benefits of their cloud investments. Download the whitepaper From Overspend to Advantage now.

nate

6473 posts

Uber Geek

Retired Mod

Trusted

Lifetime subscriber

#625019 14-May-2012 18:19

Lurch: I'd have to disagree about Naked DSL being more expensive. Being with vodafone I'm saving $45 a month over other plans.

$55 60GB + $11 VOIP

I have the same setup at home.

My query is more, why when you look at broadband plans, there is always an extra fee on top for naked DSL.

kyhwana2

2566 posts

Uber Geek

#625061 14-May-2012 19:25

nate:
Lurch: I'd have to disagree about Naked DSL being more expensive. Being with vodafone I'm saving $45 a month over other plans.

$55 60GB + $11 VOIP

I have the same setup at home.

My query is more, why when you look at broadband plans, there is always an extra fee on top for naked DSL.

Because the ISP has to pay for the line wholesale price + wholesale DSL vs wholesale DSL line on top of an existing POTS line.

I'm pretty sure it's all set by the ComCom.

Ragnor

8218 posts

Uber Geek

Trusted

#625151 14-May-2012 22:40

nate:

My query is more, why when you look at broadband plans, there is always an extra fee on top for naked DSL.

It's not extra,

When you pay for naked dsl you're paying for use of the line + use of a dsl service.

When you pay for standard dsl you pay for use of the line + use of the pots service + use of the dsl service

^ With the later you've already paid for the use of the line with the pots service so you don't need to pay again for use of the line just the use of the dsl.

The cost of the DSL service appears cheaper but it isn't.