HOW THE NBN CONNECTIONS ARE COSTED:
There are several costs that each RSP must pay to NBN Co for each connection they have to consumers.
I have copied the following, and amended as needed, from a previous answer I made in a topic:
AVC (Access Virtual Circuit)
AVC (Access Virtual Circuit) is the way each subscriber has their traffic identified in the network. Access Seekers (normally your RSP) generally buy 1 AVC per subscriber they have. This is the first part of the NBN Co Wholesale pricing. Built into this is a “free” 50 kbps per AVC and there is a monthly fee for this AVC and this is based on the speed tier for each AVC ie 12/1, 25/5, 50/20, and 100/40 each have a different monthly fee.
Backhaul
Backhaul typically refers to the side of the network that communicates with the global Internet and normally refers to your RSPs connection from the POI (Point of Interconnect) to their network presence and the wider internet. But the nbn™ also has Backhaul as per this from NBN Co “The infrastructure required to connect new developments to the wider telecommunications network – typically an optical fibre link – is called ‘backhaul’. nbn™ backhaul typically involves a connection from the new development to an nbn™ network access point that has capacity to service the new development.” All these have costs involved, some are one off, others ongoing.
From Tektel training some explanations to help you understand POI, CSA, and CVC:
“The nbn™ comprises multiple “Connectivity Serving Areas” or CSA, each with a “Point of Interconnect” or POI to which Access Seekers (RSPs) connect their respective backhaul infrastructure. Access Seekers purchase a “Connectivity Virtual Circuit” (CVC) for each Connectivity Serving Area they wish to cover. The CVC is essentially a bandwidth pipe, the size determined by the cost. The larger the CVC, the better the service to subscribers within the Connectivity Serving Area.”
CVC
CVC costs have been changed several times and from the NBN Co website is this explanation "The new CVC pricing model calculates a level of CVC discount based on an individual RSP’s average CVC capacity purchased per service.
The more CVC an RSP buys for its customers, the cheaper it gets (the higher the ratio of CVC per service the bigger the discount the RSP receives from NBN Co).
This new model works at any scale; it does not matter whether an RSP has a small or large amount of customers. The discount is calculated on the CVC ratio per service, so all RSPs can obtain the same level of discount, regardless of their size."
CVC is the second component of the NBN Co pricing for the nbn™ and this has a monthly cost based on the Mbps the RSP wants (eg 25,000 customers X $15.25 (this is an example not actual cost) Mth/Mbps X 1 Mbps/customer = $381,250 per mth). Each CSA until 30,000 premises have been connected in it gets a “free” 150 Mbps CVC.
The average CVC per consumer purchased by RSPs is a little over 1 Mbps (this is from Dec 2017) and has climbed somewhat from earlier days. Some RSP buy more than others and thus it is variable depending on who your RSP is. This increasing trend probably reflects partly/largely the discounting that the NBN Co have instituted.
The CVC is not purchased per consumer but rather as a block of bandwidth per POI that is shared with every customer they have on that POI. This as an example would mean RSP C would buy 100 Mbps of CVC then as they have 10,000 customers all on 25/5 Mbps plans they would share that 100 Mbps with every customer. As most customers are not on 24 hours a day the share might mean that most get the 25/5 Mbps package they paid for most days of the year. If all were on at one time this would mean that everyone would get 100/10,000 Mbps/customer of bandwidth ie 0.01 Mbps/customer (a very poor bandwidth).
POI
Then there is a monthly cost for each POI connection and this is the third component. Finally, there is a one-off POI connection fee that is paid when the initial POI connection is made. POI monthly charges are based on distance of the connected length to the RSP’s backhaul ie 10 km or 40 km and speed of the link ie 1 Gbps or 10 Gbps. Highest price is for the 10 Gbps/40km option which is about $1000 per month. The one-off POI cost for this package is also the highest at about $35,000.
RSP Costs
Added to these costs are the internal costs for each RSP to provide their services to each consumer. These costs may include and are not limited to, payments to a WSP if used, maintenance and supply of their own equipment and backhaul, wages and salaries, dividends to shareholders, and taxes.
Regional Broadband Scheme: (RBS) tax
Although not yet Law there is a tax which will be levied on each RSP for each customer they have. The Tax will be a maximum of $7.10 per month (indexed annually to the CPI) per nbn™ customer and the ACCC has allowed the tax to be passed onto the customers. The Senate Committee reviewing the proposed tax have said it should be passed into law, this is current state of the discussion as at April 2019. It is called the "Regional Broadband Scheme: (RBS) tax and is designed to help fund the cost of services to regional areas.
nbn™ New Development Charge
There is a one off cost to all users in Greenfield areas if they wish to connect to the nbn™, this will not affect Satellite users (who all also considered Greenfield). It is called the nbn™ New Development Charge and is currently $300 per connection. This charge is to help offset the cost of creating the new connection in new estates.
“As of April 1 (2016) NBN Co will implement a $300 charge for all connections made in areas they have identified as within the boundary of a new development. The decision was made to shift the cost of infrastructure onto the “parties that use or benefit from them”. The charge is a partial recovery cost for nbn™ for providing telecommunications infrastructure in new development areas.”
Please note that as the nbn™ matures all the above costs may vary from when this Wiki was created. Depending on when you read this you may need to search online for more current figures but we will try to keep them up to date as possible.
