Broadband an Oz govt issue

A privatised, competition-driven telco industry may be to blame for Australia's insufficient broadband infrastructure, according to broadband technology exec Shaun Page.

The local general manager for broadband aggregation company Unisphere said privately owned, profit-driven telcos in Australia were dissuaded from investing in nationwide broadband rollout because returns would not justify costs initially.

Page urged the Australian Federal Government to create tax incentives related to investment in nationwide broadband infrastructure - or to fund the expenditure itself.

-You can't do this without the support of government," he said. -Our government's not doing enough."

Broadband service providers locally would need to charge Australians up to AUD$100 per month for integrated Internet, audio, digital television and video delivered via broadband - a charge Page said most Australians would balk at initially, but would eventually agree to pay when they recognised benefits of the integrated service.

That charge would be based on recouping infrastructure investment of -tens of millions," he said.

Fully government-funded telcos in some Asian countries - such as South Korea - had already rolled national DSL infrastructure nationally that had lured significant numbers of customers into paying for the service, he said. In fact, Korea was home to the world's largest DSL subscriber base, of 2 million, he said.

Unisphere supplies products that aggregate data transmitted via cable.

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Talkback 6 comments

    We have but ourselves to blame ...Anonymous -- 31/08/01

    We have but ourselves to blame for this situation we find ourselves in. We were dazzled & entertained by Little Johnny's smoke and mirror privatisation show. We gave him anything he wanted as long as we got more smoke and mirrors. Well the smoke is clearing & the mirrors don't hide the ugly truth. We were all fools. Do we have to continue to be?

    Broad band is a solution looki ...Tim O'Leary -- 01/09/01

    Broad band is a solution looking for a problem to solve.

    What's next privatising the de ...Anonymous -- 01/09/01

    What's next privatising the defence forces?

    This privatisation nonsense was presented to us in an attractive way but things are not working out.

    Our government is very good at socialising expenditure and privatising profits.
    The infrastructure was originally paid for by the general public and now the profits go to the rip off merchants.

    Australian consumers are been shafted.

    The time horizon of the privat ...Anonymous -- 01/09/01

    The time horizon of the private business is simply too short to allow for major infrastructure investments. Private business expects a return in 6-12 months. Broadband is an investment into a national infrastructure of a long term importance. Expecting privatised Telcos to invest in broadband is like expecting the businesses to pay taxes because it is good for them (taxes will pay for all this infrastructure that will help their business).

    But, as semi-private government enterprises usual are, Telstra is the worst of the bunch. The Telstra's broadband 3 GB disaster is a clear example of what is wrong in this land. Instead of investing into the future, this government has tried to milk the broadband customers (amongst other) in order to lift the Telstra's plumetting share price and its election prospects.

    It has not worked.

    The current situation in the U ...Neville Angove -- 03/09/01

    The current situation in the United States shows what happens when infrastructure development depends on private industry. There, the bandwidth is enormous - except at the choke points such as routers and intermediate message processors. The telcos are spending money promoting their services in attempts to increase their market share, but not enough money on actually improving their services. We'll probably see the same thing here (if we haven't already).

    With a 3gb cap, broadband is u ...Anonymous -- 14/09/01

    With a 3gb cap, broadband is useless, as it has not real advantage over dial-up.

    Would anyone pay about $100 a month for payTV or for radio access for only halve a hour a day?

    Of course not!

    If people had to pay that sort of money for halve a hour of payTV a day, than they don't need payTV, nor do they need broadband.

    I was on Telstra broadband, can't get optus and now use dial-up. I will not go back to broadband unless it is unlimited and flatrate.

    If it isn't, then I don't need it!

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