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NBN not worth the effort: Internode

Internode managing director Simon Hackett this week said he had doubts about whether the National Broadband Network would ever be built and questioned whether it was worth the effort.

Simon Hackett
(Credit: Internode)

"We might get a decision by 2010 to build a network by 2015 that will be completely obsolete by 2020," said Hackett in a podcast for ZDNet.com.au sister site BNET Australia.

Instead, the executive suggested Telstra bite the bullet and build a Fibre to the Home (FttH) network. Hackett would be happy to see Telstra operate this network without open access to rivals.

Competition would be provided by ISPs like Internode who would still retain access to the existing copper networks. It would enable a lower-priced product to be available in higher density areas, allowing consumers to choose between price and speed.

If the FTN project does happen Hackett says he'd prefer the Optus-led Terria consortium (which includes Internode) to win the bid, but suspects such an outcome would delay the roll-out because of inevitable litigation. If Telstra didn't win it was likely to sue the winning bidder "into the stone age", Hackett said.

His prediction was that, at the start of the next election, there would be no network, just a massive court case.

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Talkback 7 comments

    Pair gain victims - NBN is URGENT! William J Caelli -- 04/12/08

    Mr Hackett seems to assume that everyone has some form of broadband NOW. Many of us are desparate for reasonable, business server oriented broadband of any sort, being stuck as we are on dreadful Telstra RIM/multiplexor/pair gain circuits with performance in the 35K bit/sec arena! And Telstra's Trujillo and Board apparently could not care less about this situation (at least in our area on the Gold Coast)! No upgrade time even mentioned!

    Remember, Mr Hackett, we cannot even reasonably keep any form of home/small business computer software patching up to date at all and even anti-virus tables are getting too much - a major security risk!

    We need Internode, for example, to get us a quicker fix, e.g. the new and better WIMAX (IEEE 802.16) wireless system - over to you. Think of some new business opportunities for regional/suburban Australia outside the capital cities.

    After all what is the point, Mr Hackett, of getting the usual Internode useless reply as follows when we check for your company's services:
    "Please note that this coverage check does not guarantee that Internode ADSL services are available at your premises - only that services are available at your local exchange. In certain cases there may be technology blockers between your premises and the exchange, and these can limit the availability of certain Internode ADSL service types."

    What a pointless non-service for Australians!

    We need you behind urgent broadband upgrades for us all - not just a business "hanging" onto Telstra "coat-tails".

    Re: pair gain victims Anonymous -- 04/12/08 (in reply to #320117951)

    "Mr Hackett seems to assume that everyone has some form of broadband NOW"

    On the contrary, I've spent a lot of my professional energies for some years working on fixing blackspots where we can (alas most of them are indeed in the sole domain of Telstra to fix at this point). I'm very well aware of the issues concerned. Its just that the NBN is an instance of fixing one issue but throwing the entire competitive framework out - discarding the baby along with the bathwater. There are better ways.

    If you listen to the whole interview, that may further assist your understanding of my views.

    But in brief, in blackspot terms: I absolutely agree that they need to be fixed. That would amount, long story short, to something like 'OPEL' being implemented - at a tiny fraction of the intended government expenditure for the NBN.

    I'll be presenting a paper at a conference next week that expands on the issues concerned somewhat more - and will be happy to publish that paper once its' been delivered.

    Regards,
    Simon Hackett

    HEAR HEAR! Mel Sommersberg -- 04/12/08

    It is about time all ISPs told the Commonwealth that FTTN is a crock. I've been saying all along that FTTH is a better option and this story proves it. Why are we hell bent on building a network that is already considered obsolete in some countries?

    The only thing Mr Hackett said that I disagree strongly with is that Telstra should be able to build an FTTH network and keep it for itself. There should be an avenue for either an entity of the Government's choice to build an FTTH network and provide it at a fair wholesale price to competitors or to allow a competitor to build a duplicate network alongside Telstra or indeed another competitor. Both competitors could each pay for their own fibre cables and share the cost of laying conduits, etc etc.

    Where is Sir Charles Todd and John Stuart when you need them? They didn't worry about ROIs they just got out there and did it.

    FTTN Anonymous -- 05/12/08

    FTTN isnt a crock. Telstra has proposed 800m of copper to premesis and VDSL2, its capable of delivering 50Mbps, it should be binded on 2 wire to produce 100Mbps+ if required. Rolling out FTTH is stupid and a waste of money if done now. FTTN would be sufficient in delivering the speeds we require for household and businesses. Businesses that require larger capacities go onto fibre ethernet, 100M-1G. The benefit is a smaller spend and better use of current copper infrastructure. The cost of building FTTH would drive consumer broadband up.

    And by the way, Internode is a speck compared to Telstra, it really dont care what insignificant ISPs have to say, Internode is less than 1% the size or value of Telstra, it believes itself to be much bigger than it is. Reality check time.

    Peter T. Peter T. -- 05/12/08 (in reply to #320117990)

    "His prediction was that, at the start of the next election, there would be no network, just a massive court case." And I agree! You can already see how the various applicants are positioning themselves for a Court fight - with Telstra at the head of the pack.

    Everything available at a price. Sydney Lawrence -- 05/12/08

    Mel could I ask you a question, the answer of which could help my understanding of the debate.

    Your call for FTTH is understandable, but with considerable cost. Would you agree that because of this extra cost it would be necessary, and acceptable to you, that higher charges would apply for the FTTH system.

    Pay up or shut up. Sydney Lawrence -- 06/12/08 (in reply to #320118007)

    No answer hey Mel. Could it be that any answer would be an embarrassment to you. Or perhaps you would choke on your cake as you try to have your cake and eat is as well.

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