Australia falling behind in broadband: experts

Patrick Gray

10 March 2003 11:30 AM

Tags: intug, broadband, telstra, sutherland, paul, gray, ewan, patrick

Australia's approach to broadband infrastructure is pitiful and we need to stop "fiddling around" with technologies such as DSL and "get serious", according to telecommunications experts.

Speaking at last week's Australian Telecommunications Users Group (ATUG) 2003 Conference, several industry leaders slammed Australia as the "12th man" in broadband stakes. They also branded ADSL as a "fast narrowband" technology incapable of delivering the next generation of broadband services.

The executive director of the International Telecommunications Users Group (INTUG), Ewan Sutherland, savaged Australia's attitude towards broadband and stated in no uncertain terms that the country is falling behind some fairly obscure nations in broadband development.

"You need a fairly good Atlas to find some of the countries that have snuck ahead of Australia," he said.

He pointed out that in Korea the entry level connection speed for broadband is 1Mbps, whereas in Australia the entry level is now 256kbps ADSL.

Sutherland lashed Telstra, saying that they seemed to be "aiming for world-class mediocrity" in the broadband sector.

Industry analyst and consultant Paul Budde blasted Australian political leaders, saying that as recently as November 2001 they thought that broadband was about online gambling and porn.

"It is very sad that they are the people running... the industry... our political leaders don't have vision," he said.

Budde believes that true broadband is the future and Australia isn't ready.

"[Broadband] is a hurricane that will kill a lot of people," he said.

As for Telstra, Budde says that the company's recent dividend payment was proof that they had "no clue" what to do with their money and they lack direction. He also called for increased co-operation between smaller players such as PowerTel and UEComm.

"We need consolidation guys... get together... the common enemy is Telstra," he said.

On 3G and GPRS networks, Budde says telcos should forget about them; the killer mobile app is making and receiving phone calls and SMS messages, and GSM is more than capable of delivering this.

"For too long we've been betting on the wrong horse... forget about GPRS, forget about 3G... it's even stupid to think about it," he said.

He says the whole 3G problem boils down to a market "mismatch" - the people who'll want it, for example teenagers, will be the people who can't afford it. The people with the money will look at it and think it's cool, but will they buy it? "No way!" he said.

Sutherland agrees that 3G could very well go the way of WAP, but said that "all you can eat" unlimited GPRS plans were showing some promise in the US. He said the local approach to the service doesn't make sense.

"You have a flag-fall to connect to a packet network... am I missing something?" he asked jokingly.

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Talkback 14 comments

  1. Couldn't agree more , we of the lucky country don't feel so lucky these days. Captain Cook -- 10/03/03

    Couldn't agree more , we of the lucky country don't feel so lucky these days.

  2. This is all true.. For users of broadband, Australia is one of the only countries to have capped broadband limits at ridiculous prices... For other Service Providers, Telstra should stop holding back its competitors by allowing faster access and more flex connected -- 10/03/03

    This is all true.. For users of broadband, Australia is one of the only countries to have capped broadband limits at ridiculous prices... For other Service Providers, Telstra should stop holding back its competitors by allowing faster access and more flexibility in access contracts to their network. No win for users and service providers..

  3. Supply/Demand at work by Telstra here! If a supplier restricts supply (hmm Oil comes to mind), then the price ALWAYS will be more expensive to the consumer. Basically, why would Telstra drop the price to an affordable rate, then have a gazillio Anonymous -- 10/03/03

    Supply/Demand at work by Telstra here!

    If a supplier restricts supply (hmm Oil comes to mind), then the price ALWAYS will be more expensive to the consumer. Basically, why would Telstra drop the price to an affordable rate, then have a gazillion people rushing at the gate, when they can RESTRICT the flow and still make the same amount of money out of less people???

    Also, giving us Aussies a 256k limit, allows Telstra to UPCHARGE on greater speeds - IOW, 1 gig and 256K costs the same to setup for Telstra, but charge more for the speed priviledge, coz we are a GREEDY company, supposedly looking after our investors, and at the same time writing down 1 billion dollars in OFFSHORE debt (sounds like AMP).

    But really, it's all ECONOMIC and MONEY makes the world go round - so they say!

  4. Same issues - nothing has changed. I have read similar stories on this web site for some time now and everytime the same things are being said, but nothing changes. I couldn't agree more that the Government and Telstra don't have a clue, but is there an Anonymous -- 10/03/03

    Same issues - nothing has changed. I have read similar stories on this web site for some time now and everytime the same things are being said, but nothing changes. I couldn't agree more that the Government and Telstra don't have a clue, but is there anyone doing anything about it? It is all fine and well to sit there and complain, but unless someone (inc associations, etc) is prepared to do anything about it - nothing is going to change. I don't even believe that a change of Government would fix the issue.

  5. Sad but true. As for changing Governments, the old guard has made a complete hack of broadband sack them and then try the opposition. No-one could possibly make a more ham-fisted job of broadband in Australia than Telstra and the Liberal Party. Robert -- 10/03/03

    Sad but true. As for changing Governments, the old guard has made a complete hack of broadband sack them and then try the opposition. No-one could possibly make a more ham-fisted job of broadband in Australia than Telstra and the Liberal Party.

  6. Dont fall for the Installation price drop at Telstra. They are still more expensive that the competition over 18 months so hold out and take up a plan with those companies that buy access to Telstra and resell it at cheaper that they do. Dial up until things change -- 10/03/03

    Dont fall for the Installation price drop at Telstra. They are still more expensive that the competition over 18 months so hold out and take up a plan with those companies that buy access to Telstra and resell it at cheaper that they do.

  7. "Oh the Places You'll Go" The Information Superhighway, as is the National Highway, is best made a public commodity - accessible to all for minimum access cost - you buy the necesasry vehicle and off you go, subject to appropriate costs controls Anonymous -- 10/03/03

    "Oh the Places You'll Go" The Information Superhighway, as is the National Highway, is best made a public commodity - accessible to all for minimum access cost - you buy the necesasry vehicle and off you go, subject to appropriate costs controls and funded through the taxation system. Therefore government ownership or control in some form seems to be essential. Telstra's incompetence and desparate profiteering is incompatible with the public need in this case.

  8. There's nothing Super about our Broadband highway. Its the pits. Slow and expensive. Two & a half years after its introduction it still limps along like an old dog on its last legs. Week after week it fails with no sign of it ever improving. Restricti K.Styles (A very,very disgruntled user) -- 11/03/03

    There's nothing Super about our Broadband highway. Its the pits. Slow and expensive. Two & a half years after its introduction it still limps along like an old dog on its last legs. Week after week it fails with no sign of it ever improving. Restrictive data caps, overpriced service and an Administration who thinks it has a god given right to still run a monopoly. The Mad Hatters in the T(H)elstra (Tea Party) Boardroom and our pathetic Feds like luddite Alston, don't know the 1st thing about running a Super Highway.They are super optimists if they think they will ever have 1million broadband users, based on their present prices & system performance. They know how to spend a billion $$'s on a shonky business venture in Asia & just write it off as poor judgement. Any idiot can do that!!! If I had shares in T(H)elstra, I'd want to know why it is run by dunderheads???? Business men they ain't!!!!!

  9. Just the person I wanted to complain to! ? the crapness that is australia's broadband market oh yeah it sux big time doesnt it aus always gets the **** end of the deal yes. its like in japa Anonymous -- 12/03/03

    Just the person I wanted to complain to!

    ?

    the crapness
    that is australia's broadband market

    oh
    yeah it sux big time doesnt it
    aus always gets the **** end of the deal

    yes.

    its like in japan there is no such thing as charges for local calls
    its bad for business

    yeah

    Yep and telstra will have a big wqinge @ how remote aus is

    yes but that's BULLSHIT

    yep
    thats y the gov wants to sell it to big comps
    not Just for the $
    but to give tel a swift kick up the backside
    it will still suck though cause the poeple who buys it see how much of a cash cow it currently is and wont flaming change it
    be good if cisco bought it'
    bloody highly unlikely yhough

    well

    They also branded ADSL as a "fast narrowband"

    Thats got to hurt

    cisco only lease the routers
    so
    cisco can be like
    "MAKE GOOD OR WE WILL NOT GIVE YOU ELEET ROUTERS@!"
    "AND THEN YOUR SERVICE WILL SUX HAHAHAHAHAH ROFL!"

    yeah but you know who will get the raw wnd of that type of deal
    US
    cause telstra couldnt give a ****

    yeah they would

    Its still raking in the $ for a crap service

    because telstra would be like
    "OH NO@! NO SERVICE!@ NO INTERNET OR PHONE!@ OMG CISCO HLP UZ POLZ!"

    cmon even cisco is a business, if telstra want to pay $$$$$$$$$$$$$$$$$$ they will sell routers
    and the user will pay for it eventually
    It would just give telstra another reason to keep things expensive and crappy

    but if cisco was cool
    they'd defend us ;_;

    maybe
    but I wouldnt hold my breath

  10. i feel that broadband is such a joke and so highly priced (optus) with unrealistic download limits i have gone back to a cheap dial up with no download limits wake up and smell the roses start making some realistic services and u will see a lar Chris Boorer -- 14/03/03

    i feel that broadband is such a joke and so highly priced (optus) with unrealistic download limits i have gone back to a cheap dial up with no download limits

    wake up and smell the roses start making some realistic services and u will see a large influx of customers

  11. It's telstra's policy to make Aust. fall behind the times, didn't you idiots know that. ADSL is just a consumer rip off to make Telstra's Profit margin even higher. For Christs sake, just take a look at the packages offered, the intern NA -- 16/03/03

    It's telstra's policy to make Aust. fall behind the times, didn't you idiots know that.

    ADSL is just a consumer rip off to make Telstra's Profit margin even higher.

    For Christs sake, just take a look at the packages offered, the internet offers way more then what Telstra offers. So yes, we are really falling behind the time.

    Files and websites are getting BIGGER and BETTER, so we should have a service that can provide for this at a low costs, but as always all Telstra cares about, is how much money you got in your pocket.

    **** I am paying off a block of land cheaper then what Telstra offers for ADSL. If I was to pay for the standard ADSL package, my DialUp would eat it for lunch at a cheaper price.

    The federal Gov. needs to step in and see just what is happening here.

    As far as I am concerned, ADSL should be stamping out DialUp, and the only way to do this is to offer the same or better rates, because Dialup is more then way behind the times.

    I speak to a friend in a small remote island and they all have SAT. or ADSL,,, they don't even know what DialUp is, now thats make telstra look like idiots, but hang on, they are!

  12. Yes, I agree... ... and it mainly because of one reason. 1. Telstra's old school thinking. They’re about solving internal business problems. Not customer problems. Their focus should be about providing services that solve a customer’s Anonymous -- 21/03/03

    Yes, I agree...

    ... and it mainly because of one reason.

    1. Telstra's old school thinking. They’re about solving internal business problems. Not customer problems. Their focus should be about providing services that solve a customer’s need or problem, not their own monetary or business issues.

  13. Like everyone else in this comment box, I cannot agree more. Me myself originating from Germany where about 1.5 years ago the equivalent to Telstra launched a promotion offering EVERYTHING flat for as little $50/month. And they made big bucks with it. So Marcel Brandenburg -- 23/03/03

    Like everyone else in this comment box, I cannot agree more. Me myself originating from Germany where about 1.5 years ago the equivalent to Telstra launched a promotion offering EVERYTHING flat for as little $50/month. And they made big bucks with it. So appearantly it IS feasable to launch such offers. So why is it so that Telstra and all (!) other ISP Broadband Providers charge per extra MB? That's just really sad!!!

  14. It is very obvious that Telstra is providing a slow service per $ which equals a disappointing service. Their focus on profits and not customers is even shown in these comments. The fast narrowband option offered for telstra only seems good for John Walczak -- 16/04/03

    It is very obvious that Telstra is providing a slow service per $ which equals a disappointing service. Their focus on profits and not customers is even shown in these comments.

    The fast narrowband option offered for telstra only seems good for slighltly faster downloads and 'always on' connectivity while charging a high price for it. With faster options out there 512Kbps should be a minimum broadband term at the moment, and probably in the next 3 years it will be hopefully be around 2Mbps standard.

    We are falling behind, and this is mainly due to many people not understanding the possiblilties of broadband, we HAVE to advance, we are the drive of technology but when it's priced so much economics steps in! We shouldn't be stuck in the dark ages for eternity.

    The slow down in internet and in particular broadband uptake will also probably reflect the slow down in educated public in technology. Connecting to the internet brings not only an abundance of information but sight and sound too.

    Bandwidth and Download size requirements are only getting larger, I would like to question the infrastructure telstra has provided us, how can they justify their service vs price, the answer is obviously more larger profits.
    It is certain that we will fall behind unless radical action is taken by the people, Telstra and especially the Government.

    What is government policy on internet / broadband use anyway? maybe they should learn more about the advantages, become more educated, realise the oppertunities now and in the future. Just look at global trends in technology rich places such as Singapore and Japan.

    The future of technology will rely on the internet, we strive to be interconnected and share informantion, it is uniting the world, making it boarderless and uniting the human race.

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