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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.
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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.