G9 fibre group steps up lobbying

in brief A group of Telstra's major rivals known as the G9 have placed full-page advertisements in major newspapers in an effort to prevent a deal between Telstra and the federal government on a new national fibre broadband network.

"Telstra is offering to build the network -- but only if it gets its monopoly back," the advertisements state. "The G9 group of telcos has its own plans to upgrade Australia's broadband. We are hard at work preparing a formal application to the Australian Competition and Consumer Commission."

The move comes as Communications Minister Senator Helen Coonan has in recent weeks appeared to signal she was close to a deal with Telstra on the terms under which a new national fibre broadband network would be built.

"In the foreseeable future, it would have to be Telstra," Coonan told the Lateline Business program on ABC television in early April, referring to how a fibre network could be constructed. "Clearly, the most efficient way is to ensure that Telstra is enabled in a way that they can build it with a proper commercial return, but that there is proper access for competitors and that you don't do it at the expense of simply winding back the competition laws."

The telcos involved in the G9 group are AAPT, iiNet, Internode, Macquarie Telecom,Optus, PowerTel,Primus, Soul and TransACT.

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Talkback 17 comments

    What monopoly?? Lobbie -- 17/04/07

    So it is alright for G9 to build the network and not Telstra??
    If G9 gets approval, aren't we creating a monopoly by the G9??

    My take is,
    1. Let Telstra go build their own network and charges whatever they deem fit.
    2. Let G9 go build their own network and also charges whatever they deem fit.
    3. Let customers decide who they want to provide their required services.

    If we let the market decides, then we will have competitions and possibly improved services and innovations.

    Spot on Anonymous -- 17/04/07 (in reply to #320077897)

    What a simple statement. And it makes so much sense.

    Better run it past the check list.
    Competition? Two rival networks head to head, Check
    ACCC + Fed Gov happy? We've got competition and Broadband for Australia: Check
    Telstra Happy? They get to build the network they've been talking up for so long: Check
    G9 Happy? They get their own network, and don't have to fight with Telstra anymore: Check
    Beautiful!

    Who wants two networks? AR -- 17/04/07 (in reply to #320077900)

    The cost of a fibre network is enormous. That is why Telstra won't build it without some govt assurances. I may be wrong but my understanding was that G9 don't want their own network.. they want an independent wholesale network that provides even competition to everyone. I'm not sure that Telstra can ever deliver that?
    A well regulated, or govt owned wholesale network is in the interests of the consumer... then true competition can happen at retail.

    capped broadband Anonymous -- 17/04/07 (in reply to #320077897)

    "We" all know what a monopoly is - it keeps prices high, maintains an inefficient structure, stifles innovation, kills off competition, despises an open access network, acts like a physcopath if it does not get its way - sound familiar?

    I wonder how many people would still be on dialup and capped broadband if it was not for the competition? - all of Telstra's customers.

    spot on, but gov't money could be spent better ... Anonymous -- 18/04/07 (in reply to #320077897)

    That is spot on, i dont see why both dont just build their own competing networks to the same nodes... Then spend the governments money on going halves with people wanting to put fibre the rest of the way to their houses. Win/Win if you ask me. Something like said in the following link..
    http://www.canarie.ca/advnet/fibre.html

    Your take is fundamentally wrong. Anonymous -- 18/04/07 (in reply to #320077897)

    It's vital infrastructure, and duplication will only result in higher costs for consumers. AKA AUSTRALIANS.

    You're an absolute fool if you actually believe the garbage you post.

    Go back to nowwherewearetalking where you came from.

    Two of everything Anonymous -- 17/04/07

    So, according to your logic, we should also have parallel train tracks, electric grids, gas pipelines, motorways, etc running all over this country? You're not *really* serious I hope?

    Not parallel but multi-players Lobbie -- 17/04/07 (in reply to #320077904)

    My logic is to let any players, who have the capabilities and want to build a network, go build one. The businesses/consumers will then have CHOICES. When businesses/consumers have choices, then there will be competitions. When there are competitions, there will be improved service quality and innovations.

    Take Unwired as an example. Too expensive to build a wired network? No worries, they go wireless. As you may recall, they are one of the very first company in Oz to deploy wireless ADSL.

    Now G9 is proposing to build their own network and they say they can charge at a much lower wholesale price than Telstra. Good on them. If they ever build one and if they are cheap and reliable, customers will choose them over the new Telstra network.

    What is wrong with double of everything?? Look at the market place today. Aren't we seeing 2 or more major players in a lot of industries? Take supermarket chains for an example. We have Woolies, Coles and some other smaller players. We shop at Woolies or Coles because we have CHOICE.

    The government-owned network is NOT the answer. Mainly because the government will then have to invests money to build the network and also resource to maintain the network. 5 years down the road -> an upgrade? Who's gona pay for the upgrade? Tax-payers' money? Tax payers' money should be spend on betterthings like health care NOT building/upgrading a broadband network.

    In reply to AR, a carefully regulated market place maybe a better answer. Regulations should not be on who are allowed to build the network but how the networks should be build eg following some kind of infrastructure compliance. Regulations should not be on what minimum price should the incumbents charge in the market place but on deceptive conducts, price fixing and etc as according to our TP Act.

    Two of everything Roger -- 17/04/07

    Building 'spot' businesses like supermarkets is a lot different from a utility such as rail, gas, electricity or broadband. Just look at what happened with Telstra/Optus cable (two of them). Or maybe you liked the idea of Betamax & VHS, and think that having both two HD formats is really good too (then you can spend time deciding which format you'll get down at your video store). And you really want to do all this??
    Seriously, there are better ways, and neither G9 or Telstra think this is a viable option - the cost of such an infrastructure (!!9-16 billion!!) may not support the economics of just one, let alone more than one (just like rail, electricity, etc). Noboy is stopping multiple companies spending this amount of money to build a network except the economics. We already have choice on our ADSL provider - but I don't really want each of them to have a separate wire into my home. We want a single broadband infrastructure - with unrestricted commercial access access.

    Two of everything Lobbie -- 18/04/07 (in reply to #320077920)

    Roger,

    The truth is with or without new broadband network, we make choices everyday, ranging from buying coffee from our favorite cafe to investing our superannuation funds. Yes, I do see that sometimes choices/decisions are hard BUT the beauty is WE HAVE THE FREEDOM TO CHOOSE.

    No company is going to build wire into your home without your consent and without you choosing it to. The beauty of choice again.

    No profitable company, whether Telstra or G9, is going to build a brand new network without the assurance from the regulator that no competitors can access the network and demanding the price which the competitors are to pay. It is like you having a restaurant, I choose what I want to consume and I determine the price I want to pay your for your food/service.

    The government is not going to invest and own the new network because down the road, they will face the same overheads as in the ailing copper network. This is one key drivers privatizing Telstra in the first place.

    You mentioned there are better ways of doing things. Care to elaborate? Maybe Helen C and Samuel G are reading this and get some good ideas.

    You clearly have no idea. Anonymous -- 18/04/07

    You simply CAN'T COMPARE the concepts of Woolworths and Coles with that of a FTTN network.

    As the OP SAID, this is INFRASTRUCTURE.

    Should be build double of every road, train and powerline because of your 'choice' garbage?

    NO. IT DOESN'T MAKE ECONOMIC SENSE.

    The copper network is a vital piece of infrastructure that SHOULD NOT BE CONTROLLED BY ONE PLAYER, especially one who has a retail and wholesale presence.

    Get a clue of the INFRASTRUCTURE before you post you moron.

    Ain't 'spot on at all' Anonymous -- 18/04/07

    Nothing near spot on.

    The cost of building two redundant copper networks would be enormous, and an absolutely pointless waste of money.

    Do you have two physical electricity providers/lines running down your street you idiot?

    No, you don't.

    You folks from the TLS camp clearly have NO IDEA.

    tools cant add up. Anonymous -- 18/04/07

    "i dont see why both dont just build their own competing networks to the same nodes"

    that's because you cant add up fool. Two of every thing = a lot more of five billion dollars fool.

    Split Telstra into 2 pieces Eric Cartman -- 18/04/07

    Telstra should never have been sold off by the government, but split into 2. It should have held onto the infrastructure and split of the rest of Telstra into a 'retail' arm. That way all telco's would have equal access to the infrastructure, inviting better competition. Why should the government now help pay for fibre infrastructure after Telstra have bagged them all along.

    Ockers anon. Sydney -- 18/04/07 (in reply to #320077957)

    Would all the shocking posters who use gutter language to disparage people with different points of view go to "nowwearetalking" to observe how educated and reasonable people discuss topics. If this is a reflection of the intelligence of those operating companies opposed to Telstra, you are in serious trouble and perhaps it may be better that you return to the cave.

    Re: Ockers anon. Anonymous -- 16/05/07 (in reply to #320077962)

    Using gutter language to insult people is no better than insulting people eloquently. Maybe it is you who should return to your cave, troll.

    Astroturfing Anonymous -- 23/04/07

    Interesting that you assume posters here are astroturfing, then point them to nowearetalking!

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