The competition regulator yesterday gave its strongest indication yet that Telstra could scrap its proposed next generation broadband network by the end of this month.
Australia's largest telco last year threatened to scrap the rollout of the fibre-to-the-node (FTTN) network after the federal government indicated Telstra needed to go through a formal application process to stop rivals accessing the new cables the same way they currently do Telstra's copper network.
Telstra is currently in talks with the Australian Competition and Consumer Commission (ACCC) as the pair seek to come to an agreement on the conditions under which Telstra would build the network.
But ACCC commissioner Ed Willett yesterday said Telstra could decide to scrap the idea altogether. "That might be a decision they make because at this time they can't get the regulatory environment that they (wanted), to invest in that technology," Willett told AAP.
"But that doesn't rule out some sort of network upgrade further down the track."
Telstra has said the FTTN rollout would involve putting new fibre cables between the telephone exchanges and local "node" cabinets in five capital cities, capable of reaching four million people.
But Willett said Telstra may realise that this technology upgrade was somewhat temporary. "If it is true that we will eventually get fibre to the premises, if that is going to happen, fibre-to-the-node is actually quite an inefficient way of getting there," Willet said.
"So in terms of (Telstra's) vision for the future, if the future really is fibre to the premises, well there are questions whether it should be thinking about that now, for the long term."
He said Telstra may also decide to look at technologies other than fibre. "Rolling out fibre-to-the-node right now is not the only solution to getting improved services to consumers," he said.
"Wireless services are going to do some of that, especially in rural services ... That might be a decision that Telstra comes to in the light of what we need to do in terms of maintaining a competitive environment.
"They might decide that it is not what they want to do -- they might go to plan B, they might wait a while, they want to do something else -- that is fine ... It is not the end of the world at that point, there are lots of other things that are going to happen and all of that is consistent with viable competition in a viable competitive environment."
Whatever the decision by Telstra, it was due to be released to the market by the end of June, Willett said.
"We'll be wrapping up the current discussions we are having with Telstra around the end of this month," he said.
"Then we'll be able to provide a clearer view to everyone on where things are heading and what the environment is."
"If Telstra does want to put a proposal up, we'll be consulting with different parties on that proposal."
Telstra said the company had not changed its long-held view. "From our position, nothing has changed and we continue to work co-operatively with the ACCC," Telstra spokesman Warwick Ponder said.
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Telstra has never had any plans to build a fibre to node network.This Accc red herring about "regulations" was to divert attention from Telstra's real problems.
1.Witholding material information from the markets for company advantage.
2.Inability to sack full-time workers covered by its illegal redundancy agreement.
3.The company is seriously broke.Workers superannuation entitlement monies have been stolen to help its dodgy balance sheet.
When the forensic accountants move in prepare for Australia's homegrown version of Enron.Helen Coonan Just because you are sticking your head in the sand doesn't mean I can't see your bum.You will perish by your own sword.