Rein in Telstra to let broadband breathe: Optus

Optus' chief executive has called on the incoming federal government -- be it coalition or Labor -- to take "urgent steps" to drive the competitive take up of broadband in Australia.

Speaking in Brisbane yesterday at a QUT Portman Innovation Series Luncheon, Optus' chief executive officer, Paul O'Sullivan, described broadband take up as "the most important policy challenge in telecommunications".

O'Sullivan suggested the implementation of a three-part plan to "unleash the competitive potential of broadband". The plan involves stopping Telstra playing games in wholesale broadband and restore resale margins, protecting companies building their own broadband networks and making investments viable by linking resale economics to investments in building competitive broadband networks. He added that although competition had delivered a lot of benefits to Australia, there is still a long way to go, especially with a new competitive battleground in Australia with the arrival of broadband.

"The benefits would only be realised if there was vigorous competition in broadband," O'Sullivan said.

"Optus is determined to bring competition to broadband and head off efforts by the incumbent to dominate the broadband market in the same way that it dominated the local loop. There is a critical role for government in driving the competitive take up of broadband," O'Sullivan said.

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Talkback 5 comments

    I know of quite a few people i ...Anonymous -- 16/09/04

    I know of quite a few people in the area I live, Banora Point, Northern NSW, who would like broadband but cannot get it. Half the area has it, but others cannot. I have spoken to Optus who I am with on dial-up & they say there is a lack of lines in the area. Why is this so? Is Telstra holding out or do they need to upgrade the areas. There would a big uptake I believe if people could just get it. It is very frustrating.

    lack of boradband Anonymous -- 12/06/08 (in reply to #120108118)

    I too live in Banora point and have dial-up but am sick and tired of not being able to get Broadband...optus suggested I pay for a satalite dish yeah right.... But do you know that in February they (telstra) rang me and said I can now get Broadband now...unfortunately we were going away that month and couldnt be bothered going through the bother of changing provider so hence didnt get it....A month later we came back and I rang but was told Sorry no spots left...so back to stupid slow dial up...

    I have just built a new house ...Anonymous -- 16/09/04

    I have just built a new house in a new subdivision of a suburb with an ADSL capable exchange yet Tesltra did not see fit to install hardware in my street that allows me any internet access other than dial up at 40 kbps or satellite.

    The answer I got from tesltra about this was that when demand for ADSL gets to a certain level thet will upgrade their equipment.

    This acnnot be the most economical way to deploy the hardware, and surely if the service was there when people moved into their new houses, surely there would be a greater take up of the service ?

    The problem here is that the government is trying to sell what should be a publicly owned service provider, so rather than focussing on providing good and equal service to all Australians, Telstra must focus on making itself look lean and profitable so it will be more attractive to prospective buyers !

    Ziggy is touted as being a role model for managers yet seems unable to run a service provider that actaully services it's potential customer base.

    INstead of bashing the government over the take up of broadband, Telstra should be out there installing hardware that makes it conveniently accessible to the people.

    Build it and they will come !

    i feel optus is no better in p ...Anonymous -- 16/09/04

    i feel optus is no better in providing services to difficult areas. they don't want to know about units
    or strata areas. they just want the big fat accounts
    for their broadband cable.(don't blame them)

    I feel that if telstra is forced to provide a service that they would rather forget why not optus?
    we are talking about CBD and not wisemans ferry which optus cant be bothered with. someone has to pay and its not the private sector from there profit margins.

    "True Competition" Matt -- 12/06/08

    Yeh thats OK Sullivan but what this Country really needs is "True Competition" not the regulated self serving stuff that OPTUS has sponged off for the last decade.

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