The NBN stalemate explained

Twisted Wire

Phil Dobbie

Tune in weekly for Twisted Wire, Phil Dobbie's weekly podcast on the tangled mess that is Australia's telecommunications industry.

Voted by

member123March 31st, 2010

Testie TesternameMarch 30th, 2010

Brian HavertyMarch 26th, 2010

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Things are not going smoothly for Senator Conroy. He had hoped for a smooth passage of his telecommunications reform Bill that would see Telstra's power divided and the creation of a wholesale only network that could be vended in to the new National Broadband Network (NBN).

The Bill has been delayed and delayed and, it seems, the longer time passes the more doubts some politicians have as to whether it's the best approach. Queensland senator Ian Macdonald has called it "one of the most draconian and unAustralian pieces of legislation that this Parliament has ever seen".

It's no surprise that a Liberal Senator would not support the Bill, but, as you'll hear in today's Twisted Wire, the Nationals are less likely to follow and Family First's Steve Fielding has also expressed his opposition.

So will the Bill ever be heard? It's in the Opposition's interest to delay as much as they can. We know their plan is to disband the whole process and have NBN boss Mike Quigley out looking for a new job. They'll be hoping they can win the next election and pull it all apart.

As you'll hear, Telstra also has a self-interest in playing a waiting game. The only people in a hurry on this are the government and it sounds like they've got a lot of work to do when it comes to convincing people to see things their way.

So is the NBN a sure thing? Well, it's looking less and less certain.

On today's program you'll hear from:

  • Queensland National's Senator Barnaby Joyce
  • Australian Greens Senator for WA Scott Ludlam
  • Dean of the Faculty of Business & Economics at Monash University Stephen King

For earlier attitudes step back in time to "Has Conroy got the numbers for reforms?"

(Episode 59; 29 minutes 45)

Talkback

They dont need to separate Telstra for the NBN to work. They just need access to assets such as Exchanges which is already afforded to other ISPs. NBN can rent bandwidth for some links from Telstra same as everyone else. Most of the wholesale issues now revolve around Telstras hold over the ageing and failing last mile copper network. If NBN give people the choice to stick with copper or transfer over to fibre and the services that go with it many people will particularly as online technolgy progresses. Then Telstra are left with the option to either rollout competitive tech (HFC/fibre) or rent the last mile from NBN.

xBeaniexBeanie March 25th, 2010
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What is the problem here? NBN Co can roll-out their fibre and compete with Telstra. If in desperation the NBN Co need some of Telstra's equipment then as would be the case in any normal business transaction NBN Co can negotiate with Telstra for the acquisition of the NBN Co requirements. If agreement can be reached well and good. IF not let the NBN roll-out begin and competition occur. What can't happen is blackmail and threat by Government to remove Telstra as a competitor to the NBN Co and the Rudd creation of a monopoly without competition. Look at this situation please ACCC.

sydneylasydneyla March 25th, 2010
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..."creation of a monopoly without competition"...

Hmmm, you didn't and don't have a problem with the "last mile monopolist, without competition, known as Telstra", did/do you Syd?

You even wanted further regulatory concessions to assist and further entrench Telstra's monopoly, via higher access fees and a maximum roi on their formerly proposed FTTN (PSTN upgrade)! Go Syd's shares, go...

What's the bet if you had a stake in NBN Co and not Telstra, you'd be saying the exact opposite, lol...

RSRS March 25th, 2010
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man i get sick of all the talk about the Telstra shareholders crying foul about their shares going down over all this time... It was your choice to invest in the company, you also had and still have the option to sell those shares at any point in time. You chose to hold on to them and that's your decision, because it has been a bad decision its your own fault!

If Telstra does not sell to the NBN Co and the NBN goes ahead then they are royally screwed as they will have the slow network with aging copper and the USO still attached which will be a massive money drainer and we all know that will mean the shares will drop like a torpedoed submarine to the bottom of the ocean!

Sure Telstra could try and compete with the NBN by building their own FTTH/FTTN or whatever etc (by typical cherry picking of areas to roll out in) but they would have alot of expenditure from the servicing the existing copper network over Australia, continuing to be burden with the USO plus a brand new network together as well as competing against the new player the NBN network. I cant see 2 competing wholesale networks happening... When push comes to shove the gov has more money in the coffers and more ways around the problem than Telstra.

Telstra is just delaying the inevitable and using the usual stall tactics in the hope that they are magically thrown a lifeline by somebody...

As mentioned in the podcast, Telstra has a big decision to make...
1: Telstra can make a deal now before the election and look towards the future with a bundle of cash in your hands, and 1 happy side of government.
2: I assume get rid of the USO.
3: Get rid of the aging copper network etc

or they could play the hardball game and put all their money on the table and spin that wheel and hope it lands on black!

That's what it comes down to atm!

p.s. I am in an area that I'm 99% sure probably would not be served by FTTH, so its not going to probably effect me personally, but I can see the benefit of FTTH in the long run for the majority.

garvsgarvs March 26th, 2010
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Agree 100% garvs.

Unfortunately there are still a handful of twisted and bitter TLS shareholders, who are living in 2005/NWAT/Sol stupor. They have been "willfully brainwashed", into believing all sorts of lies, because they want to believe, as it fits in within their always portfolio driven views.

As such, they repeat these NWAT lies at forums like this daily, even after their lies have been disproved over and over (proof which is simply ignored and like water off a ducks back to them, lol). The fact that Telstra even distances themselves from such lunatic views now, speaks volumes in relation to these people's misguidedness, lol...

For example Vasso here has A G A I N supplied a URL to a "business article". 99% of his links are to the business/$/shareholer perspective and "to hell with people and the future of Aust's comms". It's all about those shares and $ nothing else (which he will, and did A G A I N only yesterday at Telstra Exchange, vehemently deny, lol...)

Unfortunately garvs, people like that, who already have quality comms as both Vasso and Syd (TLS minions #1 and #2) have told us previously, don't care about anyone but themselves and will glady have the rest of us accept 2 tin cans and a piece of string (and then expect us to thank Telstra for charging us $129pm for the cans + $29.95 line rental for the string, lol...)!

All the while they sit back and utilise their ADSL2+, 24/7, to comment at forums everywhere, where they sickeningly heap undeserved sugary praise on Telstra , criticise Telstra's opponents and those who want better and blatatntly lie about comms and re-write history, etc... because they believe such sycophantic bullsh!t will help "their shares".

Disgraceful.

RSRS March 27th, 2010
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Phil, here's another point of view.

http://www.theaustralian.com.au/business/opinion/national-broadband-network-too-important-to-play-politics/story-e6frg9if-1225845532440

Vasso MassonicVasso Massonic March 26th, 2010
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garvs,..... "When push comes to shove the gov has more money in the coffers and more ways around the problem than Telstra." ? What you really meant is AVENUE TO DEBT !!!!!!

Vasso MassonicVasso Massonic March 27th, 2010
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If there was no such thing as debt, pretty much everyone, everywhere, would have nothing... so your point?

Seems like just another desperate Telstra minion comment, from another (or rather the same few) desperate Telstra minions...

RSRS March 29th, 2010
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