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I’m in a block of 40 units in inner-city Sydney. Our SC has been looking into connecting the building to a high-speed wholesale internet connection (1Gbps fibre) and connecting up all units to share the connection using an internal (common-property) network. In principle we can get gigabit speed to each unit at a very good price.
However, the bulk of the costs are fixed, so the average cost per unit is attractive ($60/month) if all units use it, but it gets more expensive if the costs are divided among fewer people. Also, it seems unfair to pay the costs out of levies if some lots do not join in and gain the benefit.
As an alternative to funding from levies we could make a 143(2) by-law and sign up units to pay for the service separately. But as half the units are tenanted, getting owners on board could be a challenge. We would also have to set up a system for billing (although perhaps our strata managers could help here, I haven’t asked).
Does anyone have any advice, if not with shared internet, experience with shared utilities of any kind that are billed separately to levies?
Thanks in advance!
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I’m not sure of the legalities of what you want to do & I have no experience with utilities apart from common area services, but herding cats sounds easier than turning the OC into a retail service provider for communications. Locking people into/herding them towards a particular provider is going to be very challenging if that is what you are proposing.
If the gigabit internal building network is to be delivered via building copper I’d be asking for more details & real world examples. Network speeds tend to deteriorate when they leave the lab & marketing materials. 😉
I’d be researching the wholesaler & their performance very carefully & asking questions at a tech. based forum like Whirlpool: https://forums.whirlpool.net.au/
Another path – our OC went through the NBN technology choice area switch program & had NBN fibre pulled to each apartment. We now have a building of very happy residents, tenants & businesses who choose their own service providers. More details here: https://www2.nbnco.com.au/residential/learn/network-technology/technology-choice-program/area-switch.html
If I was in your strata plan I’d be voting strenuously against this proposal, particularly if it locks people into a provider or a narrow range of providers who purchase their wholesale service. Search for ‘fibre estate’ over at Whirlpool for some background.
Who is offering this service? There might be more info about them out there in tech land.
Hi Malcom, you may be able to achieve the same outcome by talking to a retailer instead? I know that for a while TPG was installing fibre in buildings? I’d say if there are any setup costs involved you could vote them at an AGM but then you have the benefits only for those who want the service and you don’t have to administer it. I would explain to the owners opposed to it that making fast internet possible definitely adds value, attractivity and therefore higher rents…
@Malcolm said:
Thanks for your reaction tharra! I’m interested to know more about what you object to.I am that tech savvy person in my building. 😉 We worked to get a communications solution which works much more like a utility such as water & power. i.e. individual lot owners can choose their retailer (or 4 – the beauty of NBN fibre is that you can have 4 data connections running simultaneously) & the Owner’s Corporation has no input/care factor into that decision. They can have medical alarms, faxes, security alarms, business grade services whatever they want by choosing an appropriate retail service provider. Or they can choose to not use any NBN service & just use their mobiles. There are no ongoing costs for the Owner’s Corporation associated with the NBN tech choice solution. No one on the strata committee has to be the IT geek for the whole building. The solution will outlast the current skillset of the committee & interest of the residents.
I think you need to do more homework. Be careful of installing a white elephant consuming human & $ resources which occupants may not want in 1-2 years time if there are other communications options.
I’m also not sure what happens if the Owner’s Corporation effectively becomes the marketing arm for one provider because they have a vested interest in keeping costs low. The conflict of interest would make me wary.
If you are going to be reselling internet or phone services just be careful of your obligations under the Telecommunications legislation. There are carriers (like NBN and Telstra and TPG) but if you’re taking a bulk service from one of them and reselling it you might find yourself falling under the definition of a Carriage Service Provider who have their own obligations.
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