In depth: BigPond boss speaks out

Iain Ferguson

08 October 2003 12:30 PM

Tags: justin, milne, broadband, telstra, iain, ferguson, bigpond, chatroom

The head of Telstra BigPond, Australia's largest Internet service provider, has warned the music industry not to expect much joy from the soon-to-be-released final version of an industry-developed cybercrime code of conduct.

In an exclusive, wide-ranging interview with ZDNet Australia   Justin Milne also said:

  • Telstra had no plans to slash prices or ease download caps, with only "a small vocal group" urging the telecommunications heavyweight to drop usage charging;
  • He believed Microsoft's decision to close its chatrooms in several countries, including Australia, was made on economic and business grounds;
  • He advocated "responsible" use of the Internet, with children and teenagers "needing supervision on the Internet just as they do in real life";
  • He viewed a recent International Telecommunications Union report which said the price of broadband in Australia was "too high" as just one of many broadband-related reports whose findings often conflict with each other.
Code of Conduct

Milne told ZDNet Australia the code of conduct was about protecting individuals' privacy while establishing a protocol by which Internet service providers pass information about allegedly criminal activity to law enforcement agencies.

This existing information -- including log-in times, caller identification details, activity logs and data transfer volumes -- was already held in ISP billing systems and log files. But, he said, it was "not about requiring ISPs to collect any information additional to what they already collect".

"In general terms, it's not up to ISPs to be judge, jury and police," he said.

Milne has been actively involved in developing the code through his membership of an Internet Industry Association "virtual taskforce" tackling the issue.

The code -- the final version of which is due for release at the end of this month -- was about "protecting people's privacy," he said, with other parties such as music piracy investigators required to deal with law enforcement agencies directly in their efforts to tackle copyright infringement activities.

The music industry's copyright enforcement unit, Music Industry Piracy Investigations (MIPI), wants Internet providers to cooperate more directly with it in the pursuit of customers who use the Internet to illegally swap or distribute music files. MIPI's boss, Michael Speck, recently distributed an analysis of ISP terms and conditions which he claimed revealed most leading ISPs -- including BigPond and OzEmail -- could release user details to the music industry without breaching their user contracts.

MIPI believes that legislation should govern the area in the same way that it does banks and cash transaction reporting.

Net supervision

Milne said BigPond undertook extensive monitoring and filtering across many of its chatrooms. However, the key to the safety of children and teenagers on the Internet generally was, he said, supervision and education. In the same way that children were told not to talk to strangers in the park, he said, common sense rules should apply to home usage, to the point that both parents and their offspring developed a "cyber-second nature".

These rules included supervision, ensuring personal computers were in a "public" place in a household -- as opposed to being located in a child/teenager's bedroom -- and installation of the appropriate content filters.

Broadband too expensive?

Milne said the carrier had spent AU$1 billion on its DSL network to date -- with plans to spend AU$1 billion more -- and the "laws of capitalism" stipulated it should seek a return on its hefty investment.

He also added that lower-level users of broadband Internet services -- those for whom a quick surf or checking e-mail constituted the vast proportion of their usage -- should not subsidise those whose usage entailed downloading vast quantities of data or extensive file-trading.

The carrier has come under fire from many in the Internet community for its broadband pricing structure, which many believe is too high. A recent report from the International Telecommunications Union rated Australia the seventh most expensive country in a table of 30 in broadband pricing and second from bottom in broadband access per 100 inhabitants.

However, Milne said Telstra had seen many reports, some of which indicated that broadband pricing in Australia was too high and an inhibitor to takeup and some of which suggested that current levels were appropriate.

However, he specifically cited a recent report by analysts A.T. Kearney which -- after equalising for currency differentials and purchasing power -- revealed Australia's broadband Internet pricing was "around the middle" of several countries surveyed.

"We believe we're priced about right," Milne said.

Applications for BigPond Internet services had grown by 40 percent in September over August, Milne said, adding that while discounting had probably influenced that figure, "we have arguably reached an inflection point in the market".

However, he added that while Australia bore a significant cost relative to its competitors in the area of egress from exchanges, greater economies of scale over coming years would enable providers to reduce their costs and consequently pass those savings on to customers.

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Talkback 8 comments

  1. Still out of touch. Telstra had no plans to slash prices or ease download caps, with only "a small vocal group" urging the telecommunications heavyweight to drop usage charging Anonymous -- 08/10/03

    Still out of touch.

    Telstra had no plans to slash prices or ease download caps, with only "a small vocal group" urging the telecommunications heavyweight to drop usage charging

  2. This is Australia calling, Telstra And we want affordable broadband. Yes, we know you hired consultants to come up with a way to prove your outrageous charges are "about middle of the pack". But if your paid consu Anonymous -- 09/10/03

    This is Australia calling, Telstra

    And we want affordable broadband.

    Yes, we know you hired consultants to come up with a way to prove your outrageous charges are "about middle of the pack".

    But if your paid consultants can only get you to the middle of the pack, we know that reality is obviously much worse than that.

  3. T(H)elstra just loves to fiddle the facts. The man's a ****& he's probably in the $100K+ salary bracket, so does he care..He couldn't give a rodents rear end. Keith Styles (An irate user) -- 09/10/03

    T(H)elstra just loves to fiddle the facts. The man's a ****& he's probably in the $100K+ salary bracket, so does he care..He couldn't give a rodents rear end.

  4. The Bigpond boss is making a big mistake. It cannot be good business to have a product where anyone who is in anyway knowledgable in the area avoids your it like the plague. You would have to be a fool or a newbie to use Bigpond broad Anonymous -- 09/10/03

    The Bigpond boss is making a big mistake.

    It cannot be good business to have a product where anyone who is in anyway knowledgable in the area avoids your it like the plague.

    You would have to be a fool or a newbie to use Bigpond broadband

  5. Telstra don't care if you take up their broadband or another provider. They still make a killing on the wholesale sector and can afford to lose broadband customers to other more efficient and user friendly providers. In other words they don't have to care Mike -- 09/10/03

    Telstra don't care if you take up their broadband or another provider. They still make a killing on the wholesale sector and can afford to lose broadband customers to other more efficient and user friendly providers. In other words they don't have to care, and they don't as they are in a win win situation whichever way you go. Until Telstra are taken out of the loop and don't have to sell you, what you the customer want, it will always sell you what it thinks you should have as the Telstra chief's comments reflect. My 2 cents.
    Mike.

  6. Couln't agree mor Mike. What we need is a serious push for wireless. Remove the bastards from the loop. rim victim -- 09/10/03

    Couln't agree mor Mike.
    What we need is a serious push for wireless. Remove the bastards from the loop.

  7. Why go broadband anyway? Forgive me if anything I comment here is incorrect in any way (feel free to correct me in a non-abusive manner) as I'm only a self-taught internet user - but when I looked into getting something other than your basic analogue dial Anonymous -- 10/10/03

    Why go broadband anyway? Forgive me if anything I comment here is incorrect in any way (feel free to correct me in a non-abusive manner) as I'm only a self-taught internet user - but when I looked into getting something other than your basic analogue dial-up, ISDN sounded a lot better to me than broadband. This is for 2 main reasons: availability/coverage and comparable similar decreases in download time (as a residential user). Re: coverage, the Telstra cso that I talked to actually suggested ISDN to me because I rent and wanted whatever service I chose to be available if I moved address. Apparently ISDN is available to a wider area than broadband therefore there is a greater likelihood of continuity of the same service (although I think I still have an additional fee to pay if the place I move to hasn't implemented ISDN there before I moved in). Re: download time - from the specs I've read broadband is faster than ISDN, but it isn't that much of an increase to me as a residential user to make me consider broadband the better alternative. The only time it would make much of a difference to me is if I was downloading a particularly large game demo from gamespy (or similar use) and then it would only make a difference of a matter of minutes (compared to hours with analogue) and since I'm on a download based plan, not a hours based plan it doesn't any difference to me from a billing perspective.
    Though to a point I have to wonder - if the cabling used for ISDN provides such a better service than your basic analogue, then why isn't a company like Telstra introducing it to all their customers as a standard connection - rather than making it a user-pays implemented service? Further, if anyone wanted to look at overcoming Telstra's near-monopoly of service, then would surpassing Telstra's implementation of an ISDN service be a way to do it?

  8. Why go Broadband ? Non-Integrated RIM, I cannot get 33.6K,56K,ISDN,ADSL, what I can get is cable, but then I would be locked into Tel$tra Big Pond, so I prefer to put up with 28.8K, not because I want to, but because I refuse to give more money to Telstra Anonymous -- 14/10/03

    Why go Broadband ? Non-Integrated RIM, I cannot get 33.6K,56K,ISDN,ADSL, what I can get is cable, but then I would be locked into Tel$tra Big Pond, so I prefer to put up with 28.8K, not because I want to, but because I refuse to give more money to Telstra to bypass the dodgy phone line Telstra gave me in the first place, though I would like to be able to download the occasional large file within the 5 hour time limit I am on, and yes, I do know about resuming downloads but when I have tried it the file was corrupted.

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