Truss slams NBN project

Nationals Leader Warren Truss has blasted Labor's National Broadband Network (NBN) project, as increasing signs continue to mount that the clutch of independent MPs who will decide the next federal government are highly concerned about telecommunications and broadband as an issue.

Warren Truss

Nationals Leader Warren Truss (Warren Truss image by Bidgee, GNU)

Tasmanian independent Andrew Wilkie briefly listed the NBN as an issue in his initial letter to both sides of government as he opened negotiations for which side he will back.

Greens MP Adam Bandt's party is behind the NBN, and the trio of rural independents has flagged telecommunications as an issue in their own negotiations.

However, in a press conference broadcast by ABC News 24 today, Truss said it was the Coalition's broadband policy that would deliver to rural Australia first.

"One of the key differences with Labor is that our intention is to seek out areas which have poor broadband coverage now and deliver to them," he told journalists. "We intend to lead with private sector investment — Labor intends to lead with taxpayers' money".

Truss claimed that Labor's policy would rule out rural towns with less than 1000 residents from receiving fibre broadband and would duplicate existing fixed networks in metropolitan areas. The Coalition's policy would deliver to the bush faster than Labor's, he claimed.

Truss noted that both policies featured similar technologies — fibre-optic cable, as well as wireless and satellite solutions. However, he said, the Coalition's policy would use more wireless than Labor would.

Broadband was one of the key points of differentiation that the major parties took into the election, which resulted in a hung parliament.

Various points of both plans have been criticised by the independents; however, one common theme is that several of the minor parties and independents — such as the Greens and Bob Katter — appear to feel that Labor's fledgling NBN Co should remain in public hands.

The wireless portion of the Coalition's plan has also been a bone of contention, with most of the industry seeing fixed broadband as the more viable long-term option. Though some NBN critics, such as Exetel chief John Linton, have repeatedly highlighted the growing demand for mobile broadband as one indication that Australia doesn't need fibre rolled out around the nation.

Talkback

Mr Truss (from above) "One of the key differences with Labor is that our intention is to seek out areas which have poor broadband coverage now and deliver to them," he told journalists. "We intend to lead with private sector investment — Labor intends to lead with taxpayers' money".

Umm Waz, one of the main reasons for the NBN was becasue the private sector had (as businesses do) continually ignored the unprofitable area's, leaving subsidised Telstra and no one else to supply the basics... this explains the poor coverage.

As such, one can only assume the coalition will have to entice the private sector to invest in unprofitable areas, with further "subsidies... paid for by the taxpayer" - lol!

Difference is, with an NBN it would (initially anyway) be taxpayer paid and taxpayer owned, rather than privately owned using (wasted?) taxpayer subsidies...

RSRS August 30th, 2010
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"Difference is, with an NBN it would (initially anyway) be taxpayer paid and taxpayer owned, rather than privately owned using (wasted?) taxpayer subsidies..."

So what difference does that make, the taxpayer does not get a retail BB Plan off the NBN Co they buy it from a privately owned ISP who is selling it using (wasted?) taxpayer subsidies.

That's why ISP's are in LOVE with the NBN, no risk all profit.

advocateadvocate August 31st, 2010
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LOL... advocate I tried but really, you are either a troll or a fool (probably both?)... I apologised before for criticising you, but then you reappear with more idiocy, so...

The difference that makes is Mr Truss is saying "the coalition will not use taxpayer money"... but history has proven, if they want rural networks privately funded, that won't occur, without incentives/(taxpayer) subsidies...!

If in doubt about the rural scenario and why the cities are more attractive to most than the country ... read "your very own comment...LOL" here -

http://www.zdnet.com.au/1gbps-nbn-fans-just-plain-stupid-linton-339305623.htm

Also the NBN will have a two-fold ROI for taxpayers, via patronage and finally the sale. Where as subsidies to private companies own networks, will not!

As for the ISPs loving it (not showing your true Telstra colours now, are you?)... well the ISP's love it, the people would love it, the government would love it, umm it's a win/win/win... gee, we can't have that now, can we?

I await your reply which will inevitably have the words "personal" and "didn't answer" in there somewhere..!

Cya soon, I'm sure!

RSRS August 31st, 2010
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"LOL... advocate I tried but really, you are either a troll or a fool (probably both?)... I apologised before for criticising you, but then you reappear with more idiocy, so..."

I don't respond to personal attacks, says more about you than any response I make can.

advocateadvocate September 1st, 2010
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"I don't respond to personal attacks"... right on cue advocate, but...

you just did, LOL!!!!!!!!!!!!!

Will you ever get anything right?

RSRS September 1st, 2010
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So the Telcos love the competition from the NBN do they?

That's not what they are saying:

http://www.zdnet.com.au/telcos-back-coalition-style-nbn-slam-labor-339305668.htm

AirSlexAirSlex September 4th, 2010
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The Coalition's plan relies on wireless spectrum freed up by the switching-off of analogue TV. That won't be available until 2014 at the earliest. By the time the Coalition can even begin work, the NBN will have been half done already (and you can be they'll be concentrating on rural areas first, especially with the way things are going at the moment).

Dean HardingDean Harding August 31st, 2010
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Competition has served us well so far right? Oh wait no it hasn't, the private industry has done nothing to fix the current copper network. Under the coalition plan Australia's "broadband" market will continue to stagnate and degrade.

KussieKussie August 31st, 2010
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Competition in the wireless broadband market is booming all being handled by private industry, this increasingly important sector of the market is ignored in any discussion of the state of BB in Australia, one of the reasons the fixed line market is being ignored by private industry other than disastrous attempts by the likes of Optus and Telstra with HFC cable is that there is not any profit in large scale fixed line rollouts.

advocateadvocate August 31st, 2010
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"Competition in the wireless broadband market is booming"
But service, coverage & costs are a joke for anything other than patchy voice service.
Wireless is a very poor substitute for a fiber fixed line broadband service

grump3grump3 August 31st, 2010
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What makes you think fixed line pricing and support would be any better?

The NBN price base will be governed by that large lump of borrowings that needs feeding regularly and if NBN Co does the support, the response to your calls may be by a public servant.

The pricing for wireless (3G+) is governed by the market, it's at a high level because people are prepared to pay for it, just like ADSL was in the early days. Note also that Telstra has just dramatically dropped their ADSL/2+ pricing because fixed line use is tanking... they are prepared to take much less margin to slow the drift to wireless where they are very vulnerable to Optus and VHA.

PhillITPhillIT August 31st, 2010
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@grump3, "Wireless is a very poor substitute for a fiber fixed line broadband service".

Yes, it's not a substitute for fibre at all. Also, the Lib's Opel 2.0 proposal will not introduce any real competition into the fixed line market. They did nothing about monopolist behaviour there when they were in govt, and their current policy sounds like more of the same.

gnomegnome August 31st, 2010
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...and the NBN is real competition in the fixed line market how?

advocateadvocate September 1st, 2010
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@advocate: It's going to be a wholesale only!!! Therefore, ISP will have to be innovative in their product offering, meaning better choice, price and products for customer to choose from. Fibre will have unlimited capacity to carry data at the speed of light, that's 299,792,458 metres per second. It wont be replace for another 70+ years. Wireless is only good for traveling and it will never be able to replace fixed fibre. Currently, wireless is offering, in theory, 42mbps, but really in the real world, it maxed out at 3 to 8mbps, this depends on the number of users. If you got 8mbps and you're the only one using the cell, as soon as another user hopes on, that becomes 4mbps for you, and then more hopes on, it degrade again. You will not have this problem with fibre, whatever bandwith you signed up to, it's yours. Even cable is a shared medium. So, go back to your cave and do more about wireless.

Salami ChujilloSalami Chujillo September 1st, 2010
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I understand the NBN is wholesale only, so is Telstra Wholesale, Optus Wholesale, Chime/Power/Tel Wholesale, AAPT Wholesale etc, the difference being today of course there is a CHOICE of fixed line BB wholesalers, when NBN is rolled out it will be the ONLY fixed line player in town.

Removing all wholesale fixed line competitors from the fixed line landscape may the NBN Co's idea of a fun time but it is definitely NOT competition, it is even more of a monopoly than Telstra is.

advocateadvocate September 1st, 2010
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Don't even bother Salami.

Our friend isn't interested in hearing what anyone else says and even if you forward irrefutable proof to disprove him (as I did) he will firstly ignore and when pressed desperately attempt to discredit your info, for "no rational reason".

Why would anyone who seriously wants and answer, ask, but when presented with an answer, then not want the answer...?

Our friend [sic] advocate is good at asking questions, but misearble at accepting the answer. But even that pales into insignificance, in relation to his non existent, "answering of questions".

When the going get tough expect (refer to his comments above) I don't respond to "personal attacks" (but, he is responding... LOL, gold) and "you didn't answer my question (refr paragraph 2)

RSRS September 1st, 2010
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