Election rant 6: broadband envy

Full Duplex

David Braue

A view from the trenches of Australian telecommunications. As the name implies, it’s a two-way conversation and we ask you not to pull any punches ... we won’t.

Voted by

redroverAugust 20th, 2010

Long before the battle between fibre and wireless, and longer still before the battle between Betamax and VHS, Thomas Edison and George Westinghouse waged a vicious PR battle over whether alternating current or direct current was a better electricity standard. Westinghouse, ably assisted by Nikola Tesla, won the battle, paving the way for the electricity used in every country in the world.

Abbott, a confessed non-tech-head, who is probably ruing the day he agreed to back such an anaemic, ineffectual policy as that proffered by the Coalition. Abbott and Smith call Labor's NBN a white elephant, but they have chosen to fight it with a herring.

The response of a bitter, disappointed and no doubt rather envious Edison was to demonstrate how high-voltage AC power can be used to kill animals — and, later, to promote an AC-powered Westinghouse electric chair when it came into fashion in the late 1880s. This novel method of punishment revolutionised the act of killing prisoners, but AC still became the world standard, to Edison's chagrin.

Stephen Conroy likes to compare the NBN's current position with that of early electricity decision-makers, who knew at that point only that electricity could provide light without candles; they had no idea that widespread availability of electricity would lead to the invention of refrigerators, vacuum cleaners, computers or even the George Foreman Lean Mean Fat-Reducing Grilling Machine. In a similar way, we don't know what the NBN will enable until fast communications is as ubiquitous as electricity and people start to run with it.

There is, however, another aspect to our big NBN battle that's more comparable to the Edison-Westinghouse fight. Based on the defensive stance the Coalition has taken since launching its alternative broadband policy just over a week ago, I'd say that Tony Abbott and Tony Smith are suffering the same sort of hurt pride that drove Thomas Edison to promote the AC-powered electric chair: by repeating the words "pink batts" and the figure $43 billion over and over again, they hope to poison the NBN project and taint it by association.

If they weren't taking the moral and economic high road, an Edison-esque response would be to set up a pornographic and file-sharing website and serve up helpings of high-def hedonism to prove that the NBN really is, as some critics argue, only about faster access to porn and pirated movies.

Of course, that won't happen — although it would be, among other things, amusing. Yet I would suggest that not only are the Coalition fighting wounded, but that they are even envious of Labor when it comes to broadband policy.

An Edison-esque response would be to set up a pornographic and file-sharing website, then serve up helpings of high-def hedonism to prove that Labor's NBN is only about faster access to porn and pirated movies.

They'll deny it, of course. However, the almost universal backlash against the Coalition's policy can't have gone unnoticed even by Abbott, a confessed non-tech-head, who is probably ruing the day he agreed to back such an anaemic, ineffectual policy as that proffered by the Coalition. Abbott and Smith call Labor's NBN a white elephant, but they have chosen to fight it with a herring.

Abbott, I'm sure, did not expect the NBN to become such a prominent policy of such great importance to so many, or he would never have come out so bluntly against it from such an early stage. With the stage set long ago, however, the closing days of the election have escalated the NBN's role as a major point of difference between the parties. Yet it doesn't even rate in Abbott's four highest priorities, as determined by his ads. Given the nature of his plan, how could it?

Surely, he envies Labor's position of having a working network that is, despite attempts to paint it otherwise, going from strength to strength. He must envy Julia Gillard, who has only been leading her party for a few months longer than Abbott has led the Liberals, and can show up and bask in geek adulation as she pushes the button to launch broadband. News that the Tasmanian NBN has come in on time and 10 per cent under budget only serves to twist the broadband policy knife, again and again. (Of course, she's had practice twisting the knife; but so has Abbott, so they cancel each other out on that point).

Surely, Abbott is wishing around about now that he had pursued a more moderate approach — perhaps breaking the NBN into regional and metropolitan components to focus a fibre backbone on areas of need; or, perhaps, fast-tracking the roll-out of Ka-band satellite services across the country as a stopgap measure, while steadily filling out the fibre footprint as budgets and political desire willed it.

The Coalition could even have come off looking better had it resurrected the $4.7 billion fibre-to-the-node (FTTN) roll-out of the type that was in vogue when Howard lost the last election. Yes, if Abbott had opposed Labor's NBN rather than the fibre NBN most people seem to agree we need, he could have come off as a far more proactive, productive leader rather than an uninformed Luddite.

Yes, I'm sure even Tony Smith envies the way his cocksure counterpart, Stephen Conroy, can ride the momentum of the NBN he has facilitated.

Of course, as the Liberals are in the Opposition, it's their job to, well, oppose. They needed a telecommunications policy that was different from Labor's, and they, erroneously, focused on fibre. That led to the official decision to fight a fibre-based NBN even though industry groups and many expert analyses have suggested that a better approach might have been to support it and argue that a coalition could build it better and more cheaply. Instead, they started from the ground up and allocated only as little money to broadband as they could possibly do, and most of that won't even flow until after Abbott is re-elected in 2014.

Not only is Abbott arguing that the Coalition can regulate the telecommunications industry and build a cut-priced NBN that's better than Labor's, but he has convinced himself that giving the private sector a minimalist backhaul network, then adopting a hands-off approach that leaves them to build out the rest of the NBN and the entire industry, is going to somehow fill in the gaps left by the previous Coalition's policies. This is blind faith of the tooth-fairy order, and the whole industry seems to know this.

Even Tony Smith seems to know this: whenever he's questioned about a shortcoming of the Coalition's policy, he retreats into his warm cocoon, where the big, anonymous "private sector" will magically decide to roll out fast broadband to places it has never been able to justify doing so in the past. One can almost imagine distracting carnival music playing in his head as he waits for the interview to be mercifully over.

Yes, I'm sure even Tony Smith envies the way his cocksure counterpart, Stephen Conroy, can ride the momentum of the NBN he has facilitated, and has done what I have previously argued is all that he needed to do: get live services in Tasmania before the election so Julia Gillard can drop in on gushing customers and get great photo ops launching new services. When Conroy says the Tasmanian NBN is on time, all he means is that it's live before the election.

Abbott can't help but envy all of this, because it's feel-good stuff that screams "progress". The Coalition, on the other hand, faces the unenviable position of arguing against progress — and pitching watered-down policies that aren't really that different from those espoused by Labor. The Coalition will axe Labor's computers-in-schools expenditure, for example, but has announced it will provide $120 million for — wait for it — computers in schools. Or, if the schools prefer, glowing USB Christmas trees for every student; it's up to their discretion. Then the Coalition took a wait-there's-more approach to Labor's parental-leave scheme, dramatically extending its duration (and boosting its cost) but offering basically more of the same.

The Coalition will axe Labor's computers-in-schools expenditure, for example, but has announced it will provide $120 million for — wait for it — computers in schools.

The Coalition likes to tout its healthcare prowess, but its NBN model cannot even support a model like Labor's $392 million remote telehealth package. Even in terms of its Telstra legislation, the Coalition has been hugely uncreative: its suggested reform is basically a large helping of I'll-have-what-she's-having, bar that pesky provision about resolving Telstra's separation issues once and for all.

He won't say it publicly, but the NBN — and every issue around it — surely has become a millstone around Tony Abbott's neck. He must surely envy the calm, assured confidence and the position of technological strength from which Labor is operating to build an NBN that will be the envy of the world. However, the Coalition's blind quest to discount Labor's policies has made its own communications platform the envy of no one.

This is part of a series of seven election rants, one for each deadly sin, aired each business day until the big day. Renai LeMay is writing a reply to each of the rants, playing devil's advocate.

Talkback

I agree with this rant, it is spot on, Abbot/Smith have not spent much time on their policy and it looks like a rag-bag of hangovers from Howard/ Coonan's OPEL project, with a fair dose of 'keep it vague' so no one asks specifics, perhaps some more direction will take place if Fletcher beats McKew in Howards old seat, but post election it is all a bit late if they lose.

The NBN at this stage looks good, it is all gung ho with the Tasmanian pilot and the publishing of rollout maps is all good spin - "oh goody look my suburb is on the map".

What will be the interesting period ( it hasn't happened yet) is when all ISP's are selling to the same customer in the capital cities of Australia, and all ISP's that are left have to try and hang on to their customer base in the face of the Telstra and Optus advertising onslaught.

ISP's are sound gleeful in that they don't have deal with Telstra Wholesale anymore, but there is minor problem in the scale of events facing them post NBN rollout where they have to take on BigPond and Optus on the so called 'level playing field' they have always clamored for.

It will be a good test of the 'be very careful of what you asked for'.

advocateadvocate August 19th, 2010
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That should say 'this is a minor problem in the scale....'

Dear ZDNET,

How about a edit facility for posts, this is all a bit crude in this day and age.

advocateadvocate August 19th, 2010
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If only it wasn't filtered. Everyone keeps imagining the filter will only apply to child porn or even hardcore porn. I seem to recall some mad figures that only 3% of torrents were legal. I wonder if this will be used as an excuse to block the torrent sites. Further to that, youtube has been accused many times for not policing the copyright content uploaded to it so is there an outside chance of it being blocked? Sites campaigning and advising on euthenasia could be in deep water as well. Hell, imagine a Union organizing a strike through it's website and the strike is deemed illegal by the courts and thus the filter is used to block the Union's website.

People really need to realise just how far this filter can be taken either by the current government, or a future Liberal one that inherits it.

GLaDOSGLaDOS August 20th, 2010
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you know just like most people i would love a fibre optic connection to my home and i am an IT guy i am under 30, am addicted to the internet (get twitchy if no connection to internet for longer then 1 hour), i play online multiplayer games and download loads of stuff and for me uber speed internet would be amazing and fibre to house gives best bang for its buck

HOWEVER

I would also love to own a brand new 2010 model Lambagini Diablo it is uber fast, looks great, would probably give me the most bang for my buck, i would also love to own a palace and my own island in a remote location so dont have to pay tax which would also give me best bang for my buck and would be truly awesome HOWEVER I recognise i cant really afford that so i own a 1992 model Subaru Brumby not quite as fast as a lambogini however still gets me A to B at reasonable rate, i dont own my own island i in fact rent a flat from my parents but it still gives me a roof over my head

Problem with this country is everyone thinks they are entitled to ultra fast and most expensive everything payed for by the government but the country cant afford it

besides as has been pointed out by others most sites accessed are hosted in America and other countries automatically slowing our connection to what ever speed the minimum speed allowed on the slowest part of the connection with that particular site

Would i love to download movies and music at uber speeds sure. Would i love to download a movie in 10 minutes instead of 60 minutes sure. Would i love to have faster movements and faster screen loading time on games to give me that extra few split seconds advantage to increase my frag rate of course i do however i do not believe the country should pay $5000 per household for me to have that luxury

While businesses could do with faster internet i can guarentee the average gamer/Home user does not need these speeds and will most likely not pay for those speeds anywho

Singapore who has one of the best connections in the world for fibre only has fibre running to their major businesses and hospitals etc. I agree we should run fibre to large businesses and hospitals run fibre backbone accross the country (which is pretty much already covered) i do not believe we should be wasting the amount of money this is looking like it will do

Brumby84Brumby84 August 20th, 2010
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Brumby84... let's put your analogy into actuals.

Australia's annual revenue is $300b - so the annual cost of $4.3b for the NBN is approx. 1/70 of revenue.

Your 2010 (sorry to be pedantic but the Diablo was superseded in 2001, lol, by the) Murcielago... is $650,000.

So like the NBN being 1/70 of revenue, if this $650K was 1/70 of your yearly salary, which equates to $45.5m, I'm sure that $650K Lambo would be sitting in that garage (of your palace, on your island) right now!

RSRS August 20th, 2010
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Brumby,
The govt isn't paying for the whole thing. Private enterprise is stumping up 20 odd billion. Why are the telcos prepared to do this? If it was such a waste they wouldn't invest in it.
The NBN is not just about having fast access to the web or playing games, its about business being able to conduct business, its about tele commuting, its about education, its about healthcare. Its about providing infrastucture for the future at todays costs. Why build a infrastructure that will be redundant in ten years?

cheers

JLoJLo August 20th, 2010
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JLo:
Where is private enterprise stumping up 20 odd billion? , what source did you get this from?

advocateadvocate August 20th, 2010
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Apparently Quigley said in a speech that he's been in talks with investment bankers with the inference that they've been positive.

http://www.itwire.com/it-policy-news/government-tech-policy/41133-nbn-shaves-budget-boosts-speed?start=1

redroverredrover August 20th, 2010
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Oh so that's nothing substantive then, and the taxpayer gets to guarantee the loan and pay for the massive interest payments to service the loan into infinity.

advocateadvocate August 23rd, 2010
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I believe that JLo is reffering to the $18 billion that NBN co are going to borrow which is quite well documented. JG mentioned it in a response to a question the Wednesday night at the town hall meeting in Brisbane. Tony Jones mentioned it the Monday night when Tony Abbott was on QandA. I'm sure if you dig thru David's articles and blogs you would find it some where there also.

@Brumby84
What you've written there is FUD. $26B is a pittance, of our Trillion dollar economy, to pay for a national network that reaches >90% of the population. Further to that we're not even taking that out of one budget. The country CAN afford it.

DrNoDrNo August 20th, 2010
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I really enjoyed reading this.

luckyluke304luckyluke304 August 20th, 2010
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Been having the same argument over at CW with another HIS (head in sand) naysayer.

Our annual governance bill is $80b (ad infinitum)... compared to the NBN @ $4.3b (p.a) max. over 10 years. Both have productivity plusses, but governance does not have a monetary ROI per se`, but an NBN does and will over time, actually pay for itself.

Yes governance is required, but $80b p.a.? Apart from the "essentials", Governance also includes very lucrative pensions/super for pollies/bureuacrats, allowances, first class flights/accomodation etc.

All they have to do is trim the exorbitant $800b over 10 years by 5%, and it would pay for the nations NBN!

RSRS August 20th, 2010
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