blog Over at his blog, seasoned technology executive and all-round nice guy Sean Kaye has some interesting thoughts on a wide range of matters involving the NBN, including his pessimism about Telstra’s multi-billion dollar deal with NBN Co:
“The deal with Telstra should be scrapped. I agree with the idea, but the truth is, you can’t put rules in place that prevent competition like what the government and the NBN are doing. If Telstra wants to run their own proprietary cable and limit access to it, then its their dollar – may the market decide … So long as there is an open infrastructure program like the NBN in place.
If Telstra want to build a parallel network, they should be entitled to and should be encouraged. Thinking about this longer term, if the NBN goes in and is the only game in town, what happens in twenty years when government neglect and lack of interest sees it looking like the Sydney Rail Network? No, if free enterprise sees and opportunity to provide a better product, than so be it.”
Personally, it seems like a little bit of an extreme idea to scrap the Telstra/NBN Co deal entirely. However, personally I agree with Sean that the NBN policy should not restrict other telcos or companies in general from rolling out their own infrastructure in competition with it. If it does, that is plainly anti-competitive and runs counter to what we know of how efficient markets operate. This is one of the things which most troubles me about the NBN project as a whole at the moment.