Telstra may switch to cable after govt FTTN loss

By Jo Best, ZDNet Australia
01 November 2007 01:16 PM
Tags: telstra, cable, fttn, sol, trujillo, docsis, hfc, fibre

Telstra has revealed it's already testing a 100Mbps upgrade to its cable network -- and may pursue a cable future if any federal decision on fibre-to-the-node does not go the company's way.

Speaking at the company's investor day in Sydney, Telstra's CTO Hugh Bradlow said the company is already experimenting with pre DOCSIS 3.0, an upgrade to its exisitng HFC (hybrid fibre coaxial) cable network.

The experiment is so far providing 75Mbps in Sydney and 100Mbps connectivity over the HFC cable network in Melbourne, Bradlow said.

DOCSIS may also provide a plan B for Telstra in the event that any future fibre-to-the-node decision -- looming on both Coalition and Labor roadmaps -- does not go Telstra's way, according to the telco's CEO Sol Trujillo.

"What we do is we spend our time thinking about options. As CEO, I have to think, if that happens what to we do? ... That's a series of options we've explored. If we need to go left, need to go right or need to go down the middle, that's what we'll do," he said.

"I think if we chose -- and it's an if -- if we chose to roll out a footprint associated with HFC and DOCSIS, it would be equal to or less than [the cost of FTTN], Trujillo added.

Telstra increased speeds across its cable network earlier this year to 17Mbps, and up to 30Mbps in Sydney and Melbourne -- speeds that could also hint at Telstra moving further into IPTV.

"Speed requirements went from 256Kbps a few years ago to multi-megabits now," Bradlow said.

"We're about to enter the video-on-demand era, we know that in an IPTV environment to deliver standard definition [needs] 12Mbps. Very soon high-definition will require the doubling of speeds again [to 25Mbps]."

Talkback 5 comments

    Telstra's dangerous bluff ChillerBaggins -- 02/11/07

    The difference between a Govt. and public company Telstra. The Govt. could just say that a
    certain option was good for the country, all Australians, and get on with it. Public company Telstra can pick and choose options, make country Australia really pay the full price (not Govt. subsidized) and only supply high density areas - like the smaller ISP's do now.

    But sooner or later you run out of customers - which is what the smaller ISP's are doing now - and running around like chooks with their heads cut off.

    Is Telstra going to join them?

    Hell NO! Telstra is bluffing to get a better deal (read higher return, profit, on wholesale) from Labor.

    If they are not bluffing, then the customer reach will be sorely diminished - and the investors in Telstra will suffer badly............

    If Telstra do not roll out OZ wide FTTN pretty quickly, I'd be bailing out of Telstra shares pretty quick smart. Unless they're for your great-great-grand kids in your will!

    And why FTTN? Because you need new services to sell to customers - Grow the Business [As the most overused hip bus. saying at the moment.]

    Ofcourse there's education, medicine, trade and countless other benefits - but that's only for the consumer.

    ~~~

    "..DOCSIS may also provide a plan B for Telstra in the event that any future fibre-to-the-node
    decision -- looming on both Coalition and Labor roadmaps -- does not go Telstra's way,
    according to the telco's CEO Sol Trujillo.

    "What we do is we spend our time thinking about options. As CEO, I have to think, if that happens what to we do? ... That's a series of options we've explored. If we need to go left, need to go right or need to go down the middle, that's what we'll do," he said.

    "I think if we chose -- and it's an if -- if we chose to roll out a footprint associated with HFC and DOCSIS, it would be equal to or less than [the cost of FTTN], Trujillo added..."

    ~~~
    posted on Whirlpool by chillerbaggins
    http://forums.whirlpool.net.au/forum-replies.cfm?t=851973
    *Has VOTE Poll:: :)

    posted Windows Live Spaces - Permalink
    http://chillerbaggins.spaces.live.com/blog/cns!3C49A77ED3696D83!428.entry

    Mr Professional Blogger Harry Pappas -- 03/11/07 (in reply to #320088976)

    So what do you do all day other then roam the web looking for ways to bag Telstra?

    A quick Google search finds dozens of anti Telstra comments proudly posted by you with absolutely none of them providing any real factual insight into the way the company works, the way the industry works or what the country needs.

    To provide 100Mbps to 1,000,000 homes at a fraction of the cost of rolling out FTTN or FTTH will mean there is more money to be spent in other areas (including the bush) or returning it to shareholders.

    I have chosen to reinvest my dividends back into the company because I see the glass as half full unlike some who only wish the glass was replaced by a shot of cheap whisky to keep themselves in a merry state of delusion.

    Agreed Anonymous -- 02/11/07

    Yes, Agreed Mate.

    Even if Telstra 100Mbps, I will still stick with Internode (or who ever).

    fancy being with internode Anonymous -- 03/11/07 (in reply to #320089018)

    Lol fancy sticking with the most expensive isp in Australia which is internode

    err i dont think so Anonymous -- 02/11/07

    smaller isps running about like chooks with heads cut off? i think you will find its the opposite as they are happily doing plenty of business taking up people just off their 24 month Telstra contracts and highwayrobbery fees.

    there is actually no shortage of customers for them. however the mum and dad market telstra targets so carefully will indeed run out - there are only so many people left who have not been bitten yet.

    Im not convinced the idea of focusing on a cable market is wise. we are not a market defined by "modes" of delivery as the US is (where cable and DSL are considered two valid modes, and in competition with each other). we are ore a unified market where you get data - wether by cable or DSL is immaterial.

    to me it looks a bit like locking oneself OUT of one or the other delivery method sort of limits the ability to make split second business decisions. but then again Telstra know all about painting themselves into a corner by now.

    i do agree on the general thrust of the comment tho - this is definitely part of the Big Poker Game where Telstra is working very hard to make sure noone can read their play.

    And rightly pointed out it may not come off for them for various reasons. i wonder how Telstra would do, providing $4 billion profits when they no longer make wholesale DSL income. (that is to say, if they move to being a cable outfit and having ditched copper?)

Add your opinion

Latest Videos

Sponsored content

Power Centre - Content from our premier sponsors

Blogs

Tags

Back to top

Featured