Conroy factually incorrect on Internode NBN submission

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This article has been amended with a statement from the Office of Communications Minister Stephen Conroy acknowledging the error.

update Communications Minister Stephen Conroy has been caught out making a factually incorrect public statement about national broadband provider Internode, falsely claiming the company did not make a submission to the competition regulator’s 2010 inquiry into the number of points of interconnect (PoIs) the National Broadband Network would need.

On the ABC’s Inside Business program over the weekend, Conroy claimed Internode didn’t make a submission to the Australian Competition and Consumer Commission’s PoI review last year. The comments came in reaction to strident criticism of the NBN’s PoI and pricing model by Internode chief Simon Hackett (pictured) last week.

However, Internode’s submission to the review — as well as a follow-up submission — are publicly available on the ACCC’s web site.

After this article was initially published, Conroy’s office issued the following statement on the matter: “Simon Hackett blogged on Friday that he had made a submission. The Minister accepts he made an error. (The interview yesterday was pre recorded on Friday morning.) The Government and NBN Co are working with the decision made by the ACCC.”

In a statement issued this afternoon, Hackett said Internode had been ringing the warning bell “early and often” on the matter of flawed NBN pricing for small providers. “Our submissions to the ACCC are on the public record on the ACCC website, so it is rather curious that the Senator is perpetuating this erroneous claim about our conduct in this context,” he said.

“We seek to correct the record and point out that Internode has been providing public submissions on this and related topics at every step along the process concerned, and it remains of deep concern to us that those warnings are being ignored – not only by the ACCC, but by the Minister being so convinced that this is a new issue that he has not actually bothered to look for evidence of our participation before making his erroneous claims.”

Hackett said Internode participated very closely in processes such as the NBN review.

“Internode customers are amongst the first ever connected to the NBN and we are highly engaged with the technical processes for all upcoming deployment stages of the network,” he said. “Indeed, it is this close participation that has served to highlight to us the critical nature of the flaws in the current pricing model for the network.”

Internode’s submission last year echoes many of the same complaints Hackett aired last week about the NBN pricing, principally revolving around the number of points of interconnect which ISPs will be required to connect to to be able to provide a national NBN service. The Internode chief believes the ACCC’s model of 120 PoIs will advantage large ISPs like Telstra and Optus and force smaller companies to buy services from wholesalers — not the NBN directly.

It’s a warning that Hackett has issued repeatedly — through the ACCC review process, and through several public blog posts, with the latest coming last week after a vibrant speech on the issue to the Communications Day Summit in Sydney.

Hackett has conducted further analysis on the issue over the past few months, particularly with regard to the ‘virtual circuit’ pricing required by NBN Co for ISPs to supply customers with services over its fibre — pricing which the Internode chief believes is too high.

Image credit: Internode

23 COMMENTS

  1. I think Conroy should just keep out of this whole thing. He really only seems to make things worse… let NBNCo and Internode work it out.

      • @Micheal Wyres
        “The whole project would look better in the eyes of the people struggling to see it’s merits if he would just shut up.”

        Well it actually has its good point, it focus’s people attention on the NBN, and the fact that it is not all happy families out there, especially from some ISP’s who have to make a living flogging it.

        The more errors on Conroy’s part drawing attention to it the better, keep up the good work Minister for Broadband, Communications and the Digital Economy.

  2. Gee I agree again, alain…

    Conroy does do this most worthy build harm, by making silly comments.

    However, to be fair (you should try it even only once) the same goes for Mal.

    Mal is intentionally promoting FUD (and that’s what it is – unless he is just as technically illiterate as Conroy) and preying upon the fears of those in the community who simply do not understand (ooh, those like you)!

  3. I am amazed, not that Conroy has made a factually incorrect statement. He has been doing this for as long as I can remember. He is belligerent and this catches him out often.

    What is amazing is the admission he has made such an error, that is unusual.

    When Conroy gets a message or criticism he doesn’t like he lashes out and tries to pick a fight, seems to be the SOP of the factional dalek. :)

    When a project is as important to the nation as the NBN is, he should just suck it up and look for substance in it. Besides, even if Internode hadn’t made a submission aren’t Australian businesses allowed evolve their position? I think it is fair to say that details have been scarce and slowly released. Surely they are allowed to change their mind even… FttN anyone?

    It reminds me of a quote I recently read:
    “The fool looks at a finger that points at the sky”

  4. Conroy is a buffoon and is simply completely outclassed by someone of Simon’s calibre and intelligence. Conroy can barely speak English properly let alone utter a coherent sentence or thought without requiring a political script writer.

  5. Yes maybe but he’s doing what no one before him dared to… “separate Telstra and build an NBN”, so he’s not all bad in my book!

    Maybe that’s why many hate him so much…

      • @JosephB

        “I don’t see much separation of Telstra happening.”

        I don’t see much NBN building happening either, build tender?- oops have another go.

    • Yes maybe but he’s doing what no one before him dared to… “separate Telstra and build an NBN”, so he’s not all bad in my book!

      While I am a massive supporter of the NBN I think giving Conroy credit for it is a step too far. It was KR’s grandiose idea and Conroy was tasked with making it happen.

      I am glad it was put on the national agenda, and to be honest think it is around 10 years too late.

      PS: Bruce, any thought that there can be bi partisan support must be predicated on the fact that both sides can actually get their dinosaur era brains around what a modern national network might offer the country.

      While Abbot and co. (and I include Turnbull in that lot, particularly because he does know better) are crapping all over Shannon-Hartley and Conroy is banging on about Internet dishwashers there is no hope. In fact if they pooled their collective musings we would be significantly worse off.

      • Well Cameron, unlike some, although Conroy is far from perfect (think filter), I am not too proud to say I think he’s not all bad and reitterate, “he’s doing what no one before him dared to”…

      • @Cameron Watt

        “I am glad it was put on the national agenda, and to be honest think it is around 10 years too late.”

        Of course the structural separation is too late, it will achieve 2/5 of sweet FA in the face of the NBN rollout and the new monopoly kid on the block the taxpayer fed NBN Co.

        Telstra was operationally separated by Howard and Coonan, which had more of an effect , but of course that is conveniently overlooked in the zeal to paint Conroy as some sort of wonder man as a poor diversion attempt when discussing blunders like as in this article.

        • I reiterate elaine…

          Unlike some, although Conroy is far from perfect (think filter), I am not too proud (or in your case so politically biased) to say I think he’s not all bad and reitterate, “he’s doing what no one before him dared to”…

          (structurally) “separate Telstra and build an NBN”

          As opposed to the sugar coated (psst) just have two separate contact numbers/names and we’ll tell everyone you are “operationally separated” and ZERO NBN of the previous decade, via the previous government!

          However to show that unlike you I WILL recognise history for what it is (not simply, what I want to see it as, as you do) Coonan and Co do deserve some credit, too!

  6. Typical of politicians from ALL sides (Labor, Lib, Nats & Greens)… None of whom appear to have a clue. What we need is a bi-partisan approach to this important infrastructure project. They then appoint a team of experts who can express the nature and details of the project in lay terms that everyone can understand and entertain without a whiff of spin or F.U.D. Include in the team some knowledgable experts who can both be positive and sceptical to the point of playing devil’s advocate to keep the project honest and on track.

    Most importantly, have the politicans and their spin-doctoring media advisors shut-up! This project is far to important for the public to have to endure their stupidity.

  7. @Bruce H

    ‘Include in the team some knowledgable experts who can both be positive and sceptical to the point of playing devil’s advocate to keep the project honest and on track.’

    Of course you don’t want the ‘experts’ to be too sceptical and honest in their analysis that might kill the project altogether, just look as if you are doing the right thing to shut the punters up but keep building it anyway!

  8. Simon Hackett blogged on Friday that he had made a submission. The Minister accepts he made an error. (The interview yesterday was pre recorded on Friday morning.) The Government and NBN Co are working with the decision made by the ACCC.

    Classy. “My bad, but I’m going to continue to ignore you anyway.”

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