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more broadband blues « Previous | |Next »
December 16, 2008

An update. The Government panel has rejected Telstra's 13 page token bid to build the $5 billion national fibre-to-the-node broadband network because it is non-complying. Telstra has been excluded from the process.


Acacia, Axia, Optus-Terria, TransACT and the Tasmanian Government had met all the requirements of the process. At this stage a bidder other than Telstra will build the network. Telstra's strategy will be to boost the speed of its Next G mobile broadband network to the point where it is faster than than the Government's proposed fibre-to-the-node network.

Its history indicates that it will use the legal system to attack (prevent?) a competitor building the national fibre-to-the-node broadband network that utilizes Telstra's telephone wires that run into most Australian homes and businesses.

Telstra will fight to prevent anyone gaining access to the existing Telstra copper network. It has a record of denying ADSL2+ services to customers (even though they could “flick the switch” if they wanted to) until competition forced their hand. It's a mess. So we can kiss the building of Australia’s national infrastructure goodbye for some time.

| Posted by Gary Sauer-Thompson at 5:50 AM | | Comments (7)


Telstra will also upgrade its pay TV cable as a step to deploying its own fibre network into metropolitan areas.

It has been throwing its weight around the marketplace and attempting to write the rules for the tender process. It is in a strong market position and it has taken a combative approach to both the Howard and Rudd governments and regulators.

Can it make it on its own? Or will the Rudd Government and Telstra begin negotiations come February after the tender process has been completed an a winner announced.

Telstra was concerned about the Rudd Government's refusal to give assurances that Telstra would not be forced into further separating its retail and wholesale arms; and that its intellectual property would not be shared with other bidders.

So it has decided to play the bluff and tough game aggressively whilst calling for an outline of the regulatory framework necessary to ensure viability of the proposals.

its simple. Telstra was given too much market power in its privatisation by the Howard Government. The finger can be pointed at Minchin on this.

Telstra is arrogant. It is supremely confident that only it can successfully deliver a viable broadband network.There is no need for competition.

Telstra may try and creep in through the back door held open by Rudd and Conroy. If this doesn't happen, then this may the beginning of the end of the dominance of Telstra in the telecommunications industry.

Its all well and good to make wild claims before elections about establishing very fast networks all over Australia but at the end of the day the government cannot force private companies like Telstra into unprofitable areas without adequately subsidising them.
The government will most likely not have the reddies over the next couple of years to do that so it will most likely play the "Telstra is arogant card" so it doesnt look the liar.

Conroy + Co's pre-election national broadband network promises were just a reworking of one plan that Telstra had proposed/submitted to the Howard government--- a 12 Mbps network serving 4 million addresses in the five big cities, It was rejected because of the conditions attached: no structural separation of Telstra that the law be changed so Telstra did not have to give competitors access to its network.

One possibility that is the Government will enforce a split of Telstra's businesses within the next three to six months, in order to allow a third party such as Optus to roll out a national broadband network.