Government with huge broadband announcement

Apparently the Federal Government is said to be announcing something ‘substantial’ about Australian Broadband Infrastructure.

My guess at the moment is it’ll be some of the Broadband Connect funds being decided on how they would be spent (or at least which method of ‘broadband connect’-ing they are favouring of those offered.

I doubt that Telstra is receiving a red cent. Recent attacks to the government are hardly a way to win the support of the government. And further, it’s Telstra’s fault we have such 3rd rate broadband at the moment anyway, since 1999, they practically sat on their hands and maintained a monopoly on limited ADSL (TDSL) and Cable services, leaving the rest of us Australian Consumers putting up with what was available, shocking fraudband. That lasted 7 Years, before they were forced to move, due to competition threats from ADSL2+ ISPs, who also, like others, are sick of the crap speeds, and excessive prices that Telstra spew out like a Saturday Morning hangover, after sleeping in the dumpster.

The plans stink, and if it weren’t for pressure from competition, they’d still sit on their hands.

Telstra don’t give a rats arse about consumers, so they shouldn’t get a dime. None at all.

Optus, on the other hand, were the first to start with a Cable network, and it was to their success, a competitor with Pay TV, Broadband (fast!), as well as Telephone Services.

Telstra saw the threat, and as quick as they could say “Fuxtel”, Telstra Cable was running, in complete duplication with Optus, and no where else.

They could of instead duplicated elsewhere, like further regional, and basically each had their own monopoly until they both collided, by that point, there would have been two HFC networks, with extensive coverage anyway.

But, that was costly for both involved, and in hindsight, Optus would have thought a bit more carefully.

Looking at the Optus / Telstra cable rollouts, from a Managing Director of an ISP perspective, you get a skewed view of what would be likely to happen if you invested in infrastructure. I’m still curious what gave Michael Malone of iiNet the balls to deploy nationwide ADSL2+, whilst readily knowing about the HFC disaster.

Maybe he is in WA, and he didn’t know about it, and it was a perfect entrance point for ADSL2+? Who knows. One thing is certain, the situation was risky at any cost, but certainly has prompted some serious change in the Broadband industry.

Oh, sorry, Include above with Michael Malone, Simon Hackett of Internode / Agile, who not only started deploying ADSL2+, but also, ran Microwave towers to obtain competitive backhaul to a region that had NO BROADBAND, and only Telstra phone lines. That’s a credit to Internode, at any length.

The FTTN network announced by the G9 however, has my support, because of the following reasons, which simply cannot be argued by any Telstra Staff or Fanboi, at any rate:

1. The proposal offers infrastructure only, services are supplied by Retail ISPs, not the Infrastructure owner.
2. Operational Transparency, both retail ISPs and the FTTN network operate independant of each other, paying the operator of the network (something Bigpond can’t seriously claim, after releasing 8Mbps before Telstra Wholesale could).
3. The network brings faster broadband to the masses, and destroys the Bigpond fraudband concept in many areas of Australia (yes, Bigpond do not sell Broadband).
4. The costs of the network are near $15/customer. Telstra wanted to charge $30/customer or more. It’s the same, but half price!
5. It should have enough automatic initiative to extend itself automatically into Regional Areas, and further Australia wide, due to being simply an Infrastructure retailer, and not a Retail supplier (they don’t need to worry too much about loss leading, because its long term infrastructure only).
6. They aren’t demanding excessive ROI for the project, they get it done, bring real broadband to australians, make some money, become a big brother, threaten Telstras monopoly status in MANY areas, causing it to either:
a) duplicate. They’ve still got the money to duplicate.
b) compete. What happens when the sky has.. 2 moons..?
7. They aren’t proposing duplication of infrastructure, simply, replacing segments of it, and then becoming a infrastructure supplier, and nothing else.

– It’s very easy to see why the ACCC would support this plan, as it can’t be deemed as anti-competitive if they are going about it correctly, and not disadvantaging any company by extorting them, or having a conflict of interest.

I think its time Telstra lost one of its Conflict of Interests, that is, Retail and Wholesale. They may claim to be seperate, but.. How does Bigpond offer 8Mbps before Telstra Wholesale can offer it? Simple really, Bigpond don’t pay them a cent. If they did, they’d know for sure how bad other ISPs have it, and might actually start seeing the picture. Unlikely, but none the less, Bigpond should be paying for what it supplies. Realistically, they make like 5 – 10% off a customer compared to wholesale prices. I bet the profit statements don’t show that. Because they don’t pay for ports. :(.

Other ISPs have it tough. It’s not easy getting even half way to the top of the big, giant of the industry, but the G9 have the power to do it.

Also, Optus bringing ADSL2+ is certainly a good competitor to Bigpond. Not many customers will take up ADSL2+ from Bigpond, when others are offering it THAT much cheaper. I consider Telstra on a path that is going to destroy it, either by ignorance, or competition, both of which threaten it at this time.

Why, oh, Why must I put up with this crap fraudband ?

This entry was posted in Random. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *