blog Wow. It has been a simply massive 24 hours in NBN-land (which, in our imagination, is best described as a climate-controlled datacentre room with a view, where Mike Quigley and Kevin Brown sit casually in director’s chairs quietly sipping Earl Grey, examining ping times to remote locations and murmuring “excellent” to each other in quietly satisfied voices).
Let’s go through some of the stuff which has happened.
THE GOOD
Because of the several dozen pages of amendments which everyone’s favourite Communications Minister dumped on Federal Parliament on Wednesday, the Senate will now sit for an extra day today to go through the proposed changes to the two NBN bills currently being debated. Frankly, while we consider much of Conroy’s changes to be spurious and even dangerous, it’s good to see the Senate continue to work on a Friday (like the rest of us).
We’re paying for this democracy, goddamnit. Let’s get our money’s worth — even if it’s just for cheap laughs at Labor stalwart Conroy describing the Coalition as ‘stalinistic’ and taking potshots at Liberal Senator Simon Birmingham. Quoth iTNews:
Conroy accused the Coalition of adopting a policy on telecommunications regulation that amounted to “just do Telstra’s bidding”. “I appreciate you’ve been a wholly-owned subsidiary of Telstra for so long you’ve got a big orange T on your forehead,” Conroy told Senator Birmingham.
Also good was an update on the moves by the government’s Future Fund investment house to further sell down its stake in Telstra. The Future Fund, truth be told, has never demonstrated that it really knows what it’s talking about in trying to help guide Telstra’s tricky path through the troubled telecommunications sector, and it’ll be good to see it taking a less active role. Writes Stephen Bartholomeusz at Business Spectator:
It will certainly please Telstra’s board and management that the fund’s capacity to try to intervene in their affairs has diminished so significantly with the sale of shares equivalent to about 4 per cent of the company since the start of the year.
THE BAD
AAP tells us that NBN Co now has another two years to finish its national rollout. Of course, we knew this from NBN Co’s corporate plan release late in 2010. But to see it formalised in legislation is still a little disturbing. It’s now 2011, and the question has to be asked whether — with Labor already being forced to work with a hung parliament, an unpopular Prime Minister, an Opposition still vowing to cancel the project and several elections in between now and 2020 — whether the NBN will make it that far.
Let’s get this done as quickly as possible, should be the mandate.
Secondly, the Government has secured amendments to the NBN legislation which enshrine the right for NBN Co to sell services directly to utilities such as energy companies, with the aim of facilitating their rollout of smarter infrastructure, among other uses.
The problem with this is that — as the Opposition has pointed out — it makes a mockery of Labor’s aim for NBN Co to be wholesale-only, and opens up a whole raft of potential future problems. Why is it only utilities, for example, that need to get direct access to the NBN? It seems logical that large organisations such as mining companies could argue that their provision of basic infrastructure in certain regions means that they, too, should get direct access to the NBN.
And there are other reasons to be concerned … NBN Co scope creep, a potential degree of vertical integration, reducing the oversight powers of the ACCC … these and more are outlined in another excellent piece at Business Spectator. As Stephen Bartholomeusz points out, this is truly legislation on the run, and its long-term consequences are thus far unclear.
THE UGLY
Finally, Optus chief executive Paul O’Sullivan had a bit of a spray at Conroy’s last minute amendments to the NBN legislation currently before Parliament in Canberra, describing them as “a curve ball” and threating to pull Optus’ support. The most detailed story (with video) on this can be found at ZDNet.com.au.
Two things bother me about this … firstly, why — when Conroy is directly engaged in debating these issues in parliament — would Optus choose a public venue, at the last minute, to express its concerns about the amendments? Doing so implies O’Sullivan and his team don’t have the direct access to Conroy’s office that they should have by this stage.
In addition, the idea that Optus could convince Conroy to change the amendments — even as he is arguing them in the Senate — simply beggars belief.
Secondly, what would it actually mean for Optus to pull its support for the current NBN legislation? Not much, as far as we know — the telco will pretty much be forced to deal with whatever situation the Government hands it. Optus could have some leverage on the Government if it was currently negotiating a similar deal to Telstra’s, to migrate its customers onto the NBN. But we don’t know if it is.
In general, O’Sullivan’s comments yesterday highlight a lack of engagement with the Federal Government on the NBN issue. As Telstra’s key rival, Optus should have known about these amendments ahead of time and been consulted on them. The fact that it didn’t — and, we can assume, it wasn’t consulted — shows it is increasingly being left out in the cold in the national NBN debate. O’Sullivan’s comments yesterday represented a sideline to the main NBN debate — instead of the important engagement in it that they should have been.
Image credit: Thomas Debray, royalty free
“In general, O’Sullivan’s comments yesterday highlight a lack of engagement with the Federal Government on the NBN issue.”
Well it’s not just Optus it is Telstra as well, if you take into account that the Government and Telstra have been trying to ratify the $11billion deal for months and months.
Latest message from Telstra is that a decision on the NBN won’t be ready for the the next shareholders meeting in July and they won’t even commit to a date when it will be ready to be put to shareholders.
If you call that a engagement then the marriage is in a permanent hold pattern.
No deal with Telstra and no deal with Optus, and also those two biggest ISP’s are conspicuous by their ongoing absence with no BB Plans available in the NBN active pilot areas, and no announcements of when they will be.
Interesting times.
The Good: NBN is pushing full steam ahead.
The Bad: Delay tactics and doubt spread by the libs
The Ugly: The possibility of Libs winning next election and halting the NBN mid stride.
A question to those in the “know”.
Will the anti cherry picking laws deny future forms of wireless broadband?
ie. If a Wi-max company came to Sydney in the future, would they be allowed to sell their wireless broad band?
Cherry picking only relates to fibre, so yes, they’d be able to.
Thanks Michael. There is so much dis-information out there it is crazy. I am not a fan of advertising for government programs but someone needs to dispel the FUD being fed to the masses.
As long as you keep a eye out for the FUD in Government advertising programs being fed to the masses as well
I trust we can let you take the charge with that one Alain ;-)
Exactly would you mind telling me who is spreading the FUD that there are cherry picking laws for wireless???????????
No high level FUD Deteego, just the uninformed rambling of your kin ie. the anti NBN camp ;-) , on the comments for articles in the Australian. Hence the requirement for education on the NBN to the general public.
Right so you are pulling crap out of your ass to make yourself look good at this point
Pulling crap out one’s ass to “unsuccessfully and desperately” make oneself look good (i.e. to save one’s bacon and smashed ego, with complete BS) is colloquially known as “doing a deteego”…!
To prove my point, tell us about the Senate invertebrate… and speaking of statistics, there is now a 99% chance according to past trends that my request will be met with stunned silence and a 1% chance that I will indeed, receive a “deteego from it’s originator”!
Eh “dat ego”…?
Strong words Deteego.
I see the fear and falsehoods/lies the public come up with regarding the NBN and draw from this that better communication with the public is required from Conroy/NBN Co. I can understand those who oppose the NBN based on informed facts, but I think way too many oppose in on an uninformed political/emotional basis.
Also, next time you accuse people of pulling crap out of their ass, stop and think about some of the shit you carry on with.
Again please
Show me a link of ANYONE saying or proposing or even thinking that the cherry picking laws will also effect wireless internet in the past
PLEASE
If you can propose anything to happen in the past and can make it happen in the past, you’ll be truly “special”…
As I correctly prophesied above…
“There is now a 99% chance according to past trends that my request will be met with stunned silence…”
And guess what, “dat ego”…nothing but silence from you AGAIN. While your FUD clone elaine, no longer wants to play either, as he has FUDded himself into a corner too…LOL!!!!!!!!!!!!!!!!!!!!!!!!!!!
Have we learnt nothing from history and the original hotch potch 1992 telecommunications competition policy. I fear we are heading down the same path, only this time the stakes are much higher as this is tens of billions of dollars of taxpayers investment., will take decade(s) to implement, and will be impossible to unscramble if we don’t get it right the first time. Look how long it took both sides of the political fence to resolve original 1992 stuff up. It’s unacceptable to have policy on the fly when we are creating such a large monoply with taxpayers money, especially without proper governance and transparency. To this end it’s mandatory that the ACCC is not sidelined by legislation (after all they are the consumer’s competition advocate), and the Government stick to original proposition that NBN is wholesale only. The simplier the mandate the easier to implement, measure, and monitor. Creating exceptions (eg utilities) creates loopholes that are unnecessary. A utility (just like any other organisation) can build their own private infrastructure if the retail market doesn’t meet their technical requirements. One can only assume Conroy’s actions are driven by political and future NBN commercial necessity. This raises alarm bells, as this monoply will have all of the pricing power which leads to potential price gouging of consumer at the end of the day no matter which way you cut it, and as we are stumping up cash in the first place this is a bit rich.
Deja vu 1992 (OTC/Telecom who became Telstra) only named NBN this time is floated by Government of the day to pay down debt or something. In order to do this the monoply needs to be commercial viable (which is what a monoply normally is, if not Conroy leaves room by changing the goalpost as he is currently doing). If this is the case what have we gained, albeit a faster network, but at what cost?.
The Government got themselves into this bind by saying they were going to deliver a massive infrastructure project that benefits all Australian’s, and it was going to be commercially viable. Don’t play politics with us now and keep changing the goalposts, as this will cost us even more as they band aid things to make it fit politically.
I agree high level what Paul O’Sullivan is saying about transparency, and not creating another monoply, however he is being driven by a different agenda, as per your previous articles. I am not sure what power or difference it would make if he doesn’t agree with Conroy, and don’t think using words criminal is going to assist. Just another indication he knows how tough things are going to get for Optus in the future.
Whatever solution is created it will not be “plug and play”.
The broad direction has been set and policy is being created to ease the transition from outdated infrastructure to future infrastructure. As long the residential and business customers are not offered services from NBN co, what does it matter if schools, hospitals, power companies etc. have the option to buy directly from NBN co if it suits their operational needs?
I very much doubt they will be forced to deal with NBN Co if they wish to engage an RSP. Anyway, in the current environment, the above organisations deal solely with the existing wholesaler: Telstra. All that will be achieved through this part of the legislation is that major users with many hundreds of sites will be able to access services directly, cutting out the middleman and making things simpler and more efficient. If this was not the case, wouldn’t the electric companies, and others, just sign up normally?
The only one I see this directly affecting is Telstra. I personally won’t be losing any sleep over it.
“As long the residential and business customers are not offered services from NBN co, what does it matter if schools, hospitals, power companies etc. have the option to buy directly from NBN co if it suits their operational needs?’
Well I am sure the current ISP’s who have lucrative long term contracts with schools, power companies and hospital clients will be really happy about that one Jasmcd.
” Anyway, in the current environment, the above organisations deal solely with the existing wholesaler: Telstra.”
They do? – hello where has the Optus,IInet, Internode etc wholesale departments gone to?
“All that will be achieved through this part of the legislation is that major users with many hundreds of sites will be able to access services directly, cutting out the middleman and making things simpler”
Hey I’ve got a better idea, seeing as I’m helping paying for the NBN wholesale rollout and by default I am a shareholder, I would also like to cut out the middleman and make it simpler and buy my BB Plan at cost from the NBN Co with minimal retail markup – sounds fair to me, call it a ‘shareholder discount’!
“The only one I see this directly affecting is Telstra. I personally won’t be losing any sleep over it.”
Don’t worry about Telstra it is creaming it in with NextG, smartphone supplier deals etc and is so cash rich and has massive buying power it can diversify to the latest fad product of the month, but there are a few other ISP’s on the list of 200+ that should be worried though.
Alain, I will be happy to stand corrected on this matter, but all government entities I have dealt with (admittedly not a statistically significant proportion) utilise a common telco, and no prizes for guessing who. As stated previously, Telstra would have the most to lose. In my opinion they could possibly be the only ones to lose out. The wholesale sides of the other telcos do have major contracts with other private companies, however these types of contracts are not part of the exemptions.
The key here is that the telco’s won’t have wholesale rights as such. Sure they could offer services at a lesser price, but the NBN will still require their slice of the cake.
With regards to your discount as a shareholder, I have tried that with the bank. Just cause I am a shareholder it does not entitle me to special treatment. This “point” you raise yet again seems to be arguing for the point of arguing.
Also, as you stated, “telstra is creaming it in”. So following your logic, losing the government and essential services income stream wont hurt them and is just par for the course of the infrastructure upgrade we are going through.
“but all government entities I have dealt with (admittedly not a statistically significant proportion) utilise a common telco, and no prizes for guessing who.”
Well yeah Telstra does have a significant proportion of corporate business, but then so does Optus and then to a lesser extent the other ISP’s.
But I think you are reading the intent of NBN resell totally wrong ,I don’t see any intention to let schools and hospitals etc to deal direct to the NBN Co for internet access, the NBN Co is not going to set up systems and servers and call centres selling ‘corporate’ type BB plans in competition with the other ISP’s.
“The key here is that the telco’s won’t have wholesale rights as such.”
Well I think they will just like they do today, Optus for example offers a wholesale Naked DSL service , so in reality the chain of resell goes Telstra Wholesale ULL to Optus Wholesale add on services to ISP retail.
Variations occur with Telstra Wholesale with resells of ADSL with or without PSTN (voice) packages.
In the NBN world Telco’s could offer similar wholesale packages just take out the NakedDSL (ULL) and DSL bit, and add wireless plans for good measure.
“With regards to your discount as a shareholder,”
Well it was in response to your glib ‘cut out the middleman make it simpler’ statement, the point is we would all like that and being a taxpayer who in effect owns the NBN Co and the infrastructure the point is a valid one, although no way will it happen.
” So following your logic, losing the government and essential services income stream wont hurt them”
I don’t see the intent of NBN resell in its current form as doing that anyway.
Amazing how we put any faith and trust in politicians.
One thing I don’t.
All I can see is that the NBN is going to be 1 very expensive government screw up.
This is, of course, hardly surprising
In December the ACCC showed its technical wizardry by picking a random number of POIs between 14 and 206 and required the NBN to upsize its regional infrastructure and staffing levels, and redo its forecasts to produce the mandated 7% ROI after fifteen years. This is why its build timframe was extended to 2020 as outlined in its Corporate Plan 2011-2013. It is a ten-year build.
And yes, the Future Fund managers will be called to account for their actions in selling down TLS when its shares hit $5 by late 2011 after the shareholder approval of the NBN deal. It is scandalous that the coalition, who talk so much about waste, have filibustered since August 2010 and delayed the passage of the legislation whose detail was needed by Telstra to finalise its propsal to shareholders. Not until the deal is signed off will NBNCo know whether it can bank the eight billion dollar saving on the build cost.
Finally, by the 2013 election half a million Australian premises will be on the NBN, and good news testimonies will overwhelm the opposition FUD, which is entirely political. I don’t think we need to lobby the ignorant on this, because the vast majority of the electorate – even rusted-on Liberal voters – will appreciate the NBN when they see it.
Why is it bad that utilities get direct access? This point has never been explained adequately. Anyone with a carrier licence should be able to buy services. I know the “networking” companies don’t like this, but they don’t have some god given right to their place in the market. Even if access was limited to “resellers only”, anyone big enough to have a carrier licence can soon start up a “wholly owned reseller” company….
Anyone with a carrier licence can buy wholesale services now. Anyone with a carrier licence will be able to buy wholesale services going forward. This is a “no change” situation.
The Coalition have been making a big deal about it, but in fact blocking this ability would be cutting off an existing market segment/ability that the Coalition created with the Telecommunications Act (1997).
@MichealWyres
“Anyone with a carrier licence can buy wholesale services now. Anyone with a carrier licence will be able to buy wholesale services going forward. This is a “no change” situation.”
Well there is a change to that situation, whether it would be for the good for ISP competition or the subsequent demise of the number of ISP’s only time will tell, I suspect the latter and here is why.
Today ISP’s have a number of different wholesalers of ADSL, ULL (Naked DSL) Telco’s to choose plans from and negotiate a deal with to on sell to their customers.
Telco’s like Telstra,Optus, iiNet have competitive wholesale plans because they own DSLAM equipment in the exchange from which they can control their costs, they can also tweak up their offerings technically like Internode does and offer Annex M for example as another way to get a competitive edge.
ISP’s like TPG and iPrimus get their edge by having their own DSLAM’s but not offering services from them at the wholesale level.
Post NBN and post Telstra copper decommission and the great DSLAM garage sale, all ISP’s sell the one vanilla flavoured NBN Co plan/s in theory anyway at the one ACCC set wholesale pricing regime.
That’s a big change from how wholesaling works today.
Yes, the great DSLAM furphy… XYZ owns a few DSLAMS…so they offer “competition” (and only in limited areas)… But tell us whose exchanges do these magical competitive wonder boxes reside in? Tell us whose last mile is utilised…? Whose pits and ducts, etc? DSLAMs are but a very small, rather inconsequential, part of the current equation, with Telstra having the lion’s share of everything…! One may say, it’s currently just vanilla flavoured…!
Also, you keep telling us how wireless is the future, but went suspiciously and typically quiet, when I asked you if you are “entirely wireless your self or if you utilised fixed” (making you either hypocritical and/or FOS).
Remember, wireless, whilst being complimentary to fibre, will also be a competitor at network level.
elaine, BS, spin and FUD all you like, but post NBN (as you call it) we will see competition flourish at retail level, as RSP’s no longer have to worry about needing a few DSLAMS and being at the mercy of “their competitor Telstra”, for everything else. They can then also leave the headache of constructing networks entirely to construction experts and can concentrate on selling us better and cheaper products and services, as they should.
I ask you again… how many airports has QANTAS built? How many roads have Toll built? The aim for business is to hone in on what you are best at and deliver… the NBN will allow that to happen and happen in many more places, via many more RSP’s, especially in places now only catered for by Telstra…!
BTW legislation passed the Senate last night! So another nail in the coffin for you and your small group of mindless, selfish FUDsters…!
@RS
“One may say, it’s currently just vanilla flavoured…!”
You ignored the bit about multiple wholesalers of ADSL with multiple negotiated at a ISP level wholesale deals, and the fact that the fastest growing ISP TPG with the best value ADSL plans can do so because of their vast DSLAM spread covering the most heavily populated areas of metro and regional Australia, the same would also apply to the third largest ISP iiNet.
You also ignored the fact that iiNet and Optus wholesale and retail Naked DSL and others like TPG offer Naked DSL and do ok out of it, not even BigPond offers Naked DSL , another competitive technical edge over the incumbent Telco lost under the one flavour for all one supplier like it or lump it NBN Co.
You also ignored the fact the ACCC only oversees Telstra Wholesale resell, not the other wholesale resells, which gives them a competitive edge over Telstra Wholesale, all lost under the one flavour for all one supplier like it or lump it NBN Co.
” but went suspiciously and typically quiet, when I asked you if you are “entirely wireless your self or if you utilised fixed” (making you either hypocritical and/or FOS).”
That doesn’t make sense, what does matter what I use of don’t use at any point of time? bizarre off-topic crap that doesn’t have any purpose at all.
So are you on a NBN connection? – if not any pro NBN comment from you is therefore hypocritical?
“They can then also leave the headache of constructing networks entirely to construction experts and can concentrate on selling us better and cheaper products and services, as they should.”
Not that they had the ‘headache of constructing networks’ anyway, unless you call getting Telstra or third party techs to install DSLAM’s for them and contracting already existing non-Telstra backhaul links to their POP’s so they can sell much cheaper than BigPond broadband prices to their customers a headache.
‘BTW legislation passed the Senate last night!’
Yeah I know, it’s also not 2020 yet either.
BTW the deliberative misspelling of my tag name with the female spelling is pretty sophisticated, typical primary school stuff – keep up the good work RS.
Well advocate (oops alain), I knew calling you elaine, would get under your skin… LOL!
But remember… it is YOU, not me, who chooses to play games with names! YOU use multiple names to post DON’t YOU? Why? To make it appear as though there are many more FUDsters than there actually are I’d guess…sigh? Anyway…
Everything you just said, totally ignored the fact that Telstra’s current network is still utilised, re: competitors DSLAMs… and you still either ignore or simply cannot understand the retailing competition which will stem from the NBN.
You also didn’t answer how many airports have QANTAS built?
If you say we should have multiple network owners, should we have multiple trenches dug (go on say use Telstra’s and give us all a good laugh) or have multiple cables hanging overhead? Should we then also have multiple power lines, water pipes, etc? Comms is a natural monopoly in such a vast island as Australia and no amount of your FUD can change that!
More carrier licences issued too you say…. great instead of hundreds of ISP’s in the cities we’d have 1000’s and still, just Telstra only elsewhere…wow! But you’re ok, **** everyone else!
Speaking of which, as for my questioning you and your current comms… it makes sense, to those who can think beyond whatever their political masters tells them… so not you.
You keep saying wireless is the future not fixed… but yet you yourself prove otherwise. The fact that you again could NOT bring your self to admit that you have fixed (whilst arguing against fixed) is quite telling, if not downright hypocritical/typically desperate…!”
No it’s not 2020 yet, that’s why I said ‘another nail in your (FUD) coffin”… you’re not 6 feet under yet (rhetorically speaking of course) but getting there, with each subsequent nail hammered…!
And please explain again ( I must have missed it first time…LOL…….!!!!!) your previous (condensed because I’m sick of asking in full and you just hiding) contradictions of – “you betcha the NBN will be a success… and NBN will fail just like HFC…?
Well go on…tiger!
” and you still either ignore or simply cannot understand the retailing competition which will stem from the NBN.”
You mean the retail competition where all ISP’s are selling the EXACT SAME plans as everyone else, because they all buy at the EXACT SAME PRICE set by the ACCC from the NBN Co.
So in a fixed line BB saturated market which we are virtually at in 2011 how are the smaller ISP’s going to poach customers from the top three, BigPond, Optus and iiNet who between them hold about 80% of the market – give it away? remember they don’t have their own controlled DSLAM hardware cost base to work off anymore, that is undercutting BigPond and Optus because they have their own exchange gear.
What’s to stop BigPond and Optus selling NBN Plans at cost +5% because they already have the bulk of the customers in Australia anyway and getting their value add from the other stuff like a mobile/wireless package or IPTV and movie downloads and market teasers like every plan comes with a free Ipad etc etc, because with their massive buy power they can arrange nice lucrative deals with smartphone/tablet suppliers, and virtually tie up the supply.
“You also didn’t answer how many airports have QANTAS built?”
I don’t even understand the relationship between that and the NBN Co and wholesale resell, I don’t know what planet you are posting from on that one.
“If you say we should have multiple network owners”
I didn’t say that.
“More carrier licences issued too you say”
I didn’t say that.
“it makes sense, to those who can think beyond whatever their political masters tells them… so not you.”
??? huh ??? , I just assume you are so desperate to try make some points stick anything will do, why don’t you copy & paste today’s weather forecast – at least that would be useful.
“And please explain again ”
I have explained it over and over and over as you well know, you just ignore it, the repetition and despair in your feeble attempts to point score has now gone beyond pathetic to a whole new stage.
Cut the crap…elaine!
1…LOL you just admitted there isn’t currently network competition via DSLAMs.
alain comment above – “Not that they had the ‘headache of constructing networks’ anyway, unless you call getting Telstra or third party techs to install DSLAM’s for them and contracting already existing non-Telstra backhaul links to their POP’s so they can sell much cheaper than BigPond broadband prices to their customers a headache.
Exactly my point LOL — of some trying to desperately and WRONGLY call DSLAM installation “network construction”!
So thank you for making my point for me and for disproving (DARE I SAY CONTRADICTING… LOL) your own previous claims, that this construction and competition [sic] will be sadly lost under the NBN. Yes it will be lost, but who cares, because it was never actually competition/construction anyway (as you just agreed)…!
2. You don’t want multiple network owners, so you said above, nor a monopoly, as you keep telling us… so you don’t want comms at all…!
3. You are on Fixed because you choose to be (thanks again for proving yourself a FUDster) as you also therefore choose to shun complete wireless technology,whisl supporting in blogs, complete wireless….LOL. Ooh also, I am not on the NBN simply because it’s not available to me YET… so enough absolute idiocy please!
4. You have NEVER, explained your stupid, irrational contradictions…that is a pure lie and you know it…!
AGAIN – “you betcha the NBN will be a success… and NBN will fail just like HFC…?
So please explain…!
I am not responding to your chaotic mess of made up assertions, half truths, copying & pasting out of context and complete crap anymore, it’s a complete wast of space, adds FA to the discussion and is a total bore for everyone else to read
No you aren’t how typically GUTLESS…!
So you just keep posting contradictory LIES under many different desperate personas, such is how noble you and your cause are…!
The premise of the NBN is fair, equitable, and ubiquitous access of delivery of basic services for all Australians (no matter where you live), which the Government didn’t believe private enterprise could deliver effectively.
Therefore in order to ensure the above is achieved the Govt decided to take on the risk of building the basic infrastructure to meet above objectives.
In return the Govt expects competitive tension, and innovation for services above and beyond the basic elements NBN will deliver, as this will lead to a smarter and more productive Australia no matter where you live.
So the more carrier licences issued the better it’s for consumers, providing competition, innovation, and enabling us to become a smarter country. However as we (taxpayer) are funding the basic services and taking on the risk of building, in return we expect organisations with carrier licences to deliver services to the general public.
This is where the problem lies in regards to utilities, they want to use the infrastructure we are funding to provide services for their own individual purposes, in effect cherry picking a taxpayer funded asset without returning the competition, innovation, and investment in new services the NBN has been setup to deliver for all Australian’s.
So as long as utilities or any other organisation with a carrier licence delivers competition and benefits to all Australian’s, as a retailer (with the associated overheads this entails) there is no issue. The NBN was never meant to enable individual organisations (Govt or private) deliver cheaper telecommunications services for their own individual purposes.
Once you have an exemption for utilities, you set a precedent for other organisations, where do you draw the line?.
Allowing other organisations such as utilities (with a carrier license) to connect IS innovation.
Why does it need to be through a dedicated ISP? Beyond the ACCC ensuring we don’t have a duopoly, why does the ISP have to be a protected species and get a cut?
If an electricity company wants to do smart metering using the NBN why should I as the consumer of the smart meter be paying for the ISP middleman who adds zero value.
Post NBN, there is bugger all money going to be made from providing retail ISP services, so anyone that isn’t in wireless or other value added services is going to be extinct.
A carrier license isn’t trivial. $2,500 plus up to $1,000 annually, then the minimum NBN charges per POI and staff to manage the network. Businesses outsource expertise like call centres, this is no different. If the telco/ISP can add value then it makes sense to use them, otherwise why bother.
Existing ISP’s are just trying to protect their revenue, and fair enough to them, but what’s good for Optus and other ISP’s has nothing to do with what’s good for me.
I have no issues with private utilities having direct access to the NBN as long as some of the costs savings will be passed onto the consumer, otherwise we are just lining their pockets.
I would also expect government funded organisations (Health, Defence, Infrastructure etc) to get the same benefits if they want to use them.
The NBN was one of the key (if not the only key) reason Labor hung on and is still hanging. As much as the Libs would love to destroy it, by the time they do get elected, enough money will have already been spent that it will make them look very irresponsible if they do.
There is no intention of destroying what is built so far, if the Coalition win the next election they will either sell it off 100% privately, I am sure Telstra or SingTel would be very interested in a partially completed FTTH fire sale or the Coalition will create a private/public partnership company along the lines of the now defunct OPEL proposal, without the Optus heading it up bit.
@alain, the NBN has spent $662 million of taxpayer money so far, and will have spent several billion by the 2013 election, with a satellite under construction as well.
But because the fibre network under construction will still be geographically piecemeal, it will not have a saleable value to adequately compensate taxpayers for the money we have spent getting it to that point. So why on earth would we sell it, and how could such a sale be justified?
No, the fact that nearly 5% of the nation will by then be using fibre will be the thing. Everybody will know someone who raves about their fibre service, an its benefit as both a universal and public asset will not be able to be successfuly hidden by FUD.
“But because the fibre network under construction will still be geographically piecemeal, it will not have a saleable value to adequately compensate taxpayers for the money we have spent”
Well I don’t think the partial completion stage has anything to do with adequate compensation for the taxpayers, you could have it 100% completed and still not get adequate compensation for taxpayers if and when it is privatised.
You could not sell it not get the optimistic take up rates planned in the NBN Co business case and still not get adequate taxpayer compensation.
” Everybody will know someone who raves about their fibre service,”
Well yeah, and everyone will know someone who has it going pass their house but has not connected to it, guess they will have to just ‘struggle on’ while their neighbours reap the economic boom of the digital age eh? – well the IPTV and movie download services that are charging them a monthly fee will anyway, that’s all that matters.
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