Labor’s Tony Kelly: OPEL is second rate broadband

Recently, Labor Member, Regional Development Minister for NSW, Tony Kelly can be echoed in the media as stating that the voters should decide on broadband.

Mr Kelly believes that OPEL could leave Regional and Rural broadband users with “second rate broadband”.

I raise a few points directly with him via email, no reply yet, and I still wonder if I will get one from the idiot.

Here’s why I believe Mr Kelly is illogical.
1. He claims the Australian voters are capable of deciding plainly whether broadband services are an issue for them.

That’s not the right way to go about it, as quiet many Australian’s have no idea at all when it comes to broadband services, and so, anything they say can be easily ruled out as uninformed material.

Sure, its the taxpayers money, but guess why the taxpayer doesn’t spend that money?
Because they all have no idea how it should be spent.
– Sorry to the intelligent few out there that very well could have some good ideas about this. The majority would have no real idea.

So, that’s why the spending is left to the government.. who don’t seem much more intelligent than the average joe when it comes to decisions like this.

Could it be Mr Kelly knows little about broadband and thought he’d score points by simply “letting voters decide” ?
Who knows, it’s stupidity, and from the Labor party… again.

2. He claims OPEL’s service could leave regional and rural users with second rate services.
Absolute trash from a trash talker.

OPEL is a competitive network to Telstra.
Telstra currently have overpriced, artificially shaped ADSL2+ DSLAMs throughout most of OPEL’s target area, as well as overpriced, flawed NextG wireless services.

Now, let’s say OPEL launch a service in competition to Telstra’s current offering, so we’ll match them here the best we can, but we aren’t comparing like technology, and Telstra’s is excessively overpriced.

8Mbit ADSL1 from Telstra Wholesale, comes in at a retail price of $90 for high end plans.
24Mbit ADSL2+ from OPEL comes in at a max price of $60 for high end plans.

Hmm.. That’s $30/mth difference, so when OPEL release, the first thing they’ll do is push that cheaper plan, and get users that way.

Telstra will be somewhat annoyed at this excessive loss of customers, and will do something to get them back. They’ll probably match the OPEL offering, and better it in some way with free calls for example.

OPEL will be disappointed at this, and return with innovating its network to have even faster speeds and reduce prices further.

Telstra will be angered by this move and install VDSL2 and get customers on for faster speeds.

OPEL will want those customers back and reduce price.

What is it that Tony Kelly can’t see about the basics of competition? They want marketshare, they’ll earn it. They’ll all compete to get it.

Oh, and I forgot to mention: The wholesale effects from OPEL’s backhaul services will result in even more alternative services able to be offered.

If that’s second rate, then I’ll happily accept second rate. Because the reality is, when true market forces can finally clash together and get the job done themselves in regional and rural areas, is when we will have a true telecommunications network where companies fight tooth and nail for my dollar. As they bloody well should.


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