This morning Telstra chief executive David Thodey took questions from the media on the telco’s $11 billion deal announced yesterday with the company behind the National Broadband Network. You can listen to the conversation in this audio file of the teleconference.
The deal — if approved by Telstra shareholders, the ACCC and the Government — will see the telco migrate its telephone and broadband customers onto the fibre NBN, with its copper (ADSL) network to be shut down and no more broadband services to be provided over its HFC cable network.
This is great new for Telstra shareholders and supporters of the NBN or Labor government (same thing really). Interesting to note that Liberal in their profound wisdom STILL oppose the NBN. Stupidity of the highest order.
Regardless of how much hatred people have for Senator Conroy (and I have a lot) you have to hand it to him on this one. Job well done.
I wouldn’t say it is great news for Telstra (I’m sure you have read my commentary on this, Simon, and there’s more coming), and certainly the closure of the HFC network removes one of the competitors to the NBN — which is not necessarily a good thing for consumers.
Australia is kind of putting all of its eggs in one basket here … and when that basket is held by Senator Stephen Conroy, you have to wonder why everybody trusts the situation so much.
I tend to think that this will level the playing field over time. Removing Telstra’s dominance as a wholesale ISP will mean they will actually be forced to be competitive in the NBN arena. However I think they’ll still flourish because of their gigantic customer base and advertising power.
As for Conroy holding all the eggs, he’ll no doubt drop a few (see what I did there? ;)) but I honestly think the man is capable of some good work. It’s hard to think objectively like that when I dislike him for so many other reasons, but alas I think he’s pulled off a very good move here. Maybe it’ll even earn him back a little respect in the IT community.
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