Christian Kerr | August 22, 2008
WE keep on hearing plenty about "the most momentous economic reform for decades", the emissions trading scheme. But what about the most momentous infrastructure project, the national broadband network?
Telstra's outgoing public affairs chief Phil Burgess
Many in the industry are unimpressed by the minister. They are pretty frank about his Opposition counterpart, Bruce Billson, as well.
Conroy isn't much, they say, but hasn't felt the blowtorch because his Coalition shadow is even less.
The criticism of Conroy may be unfair. He is quick-witted and engaging. And he is dealing with an issue with enormous complications and implications, an enormous price tag and an enormous amount that could go wrong.
Broadband touches the top end of town and mums and dads, yet of all Labor's big-ticket election promises, the national broadband network is probably the one we have heard the least about.
That may change when the submissions to the Senate select committee into the project close on September 12.
Even then, most will deal with the details of the technology and financing needed for the network. They'll be for the cognoscenti. But there are a couple of other fascinating spillovers into different debates.
"It's incredibly green," one industry consultant said of the national broadband network. "People can work from home so the number of commuter trips you need to make is much less."
Indeed, this individual believes high petrol prices are already cranking up demand for telecommunications and internet services.
Terria, one of the consortiums chasing the project, made up of Optus and seven smaller telcos, cheekily held a press conference in Parliament House yesterday to launch its bid.
Still, the industry seems to expect Telstra will come out on top, which could lead to some prickly parish pump politics.
"Phil Burgess read the writing on the wall," an industry figure said yesterday. "Telstra will change their tune. They will get control of the entity."
A makeover of telecommunications infrastructure would let Telstra offload much of its property portfolio.
"You don't need the local exchanges with DSL (digital subscriber lines)," a consultant said. "Telstra could cut the number of sites they have and free up one to two billion dollars worth of exchange buildings. If it's all optical fibre, you don't need them."
The broadband network could become a nimby issue with plenty of politics to test the minister and debates springing up that might amaze the techheads.
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6 Comment(s)
I agree with others, the Government should own all national infrastructure and lease it out to companies at a cost. Then there can be true competition as every player is subject to the same rules. How can you leave national infrastructure in the hands of Private companies? It's just CRAZY!
The last government sold Telstra back to us as a whole including the infrastructure. Now they want it back for nothing. Telstra is a private company now with private shareholders. I don't see the ACCC forcing any other privately owned company sharing their infrastucture with their competitors at bargain basement prices.
As stated by any one who is even at least half aware, Australia does not and never will have the population base to let the free market provide decent broadband for everyone. It is there fore essential to make infrastructure development a governement issue, that is the federal government is responsible for the creation and maintainance while leasing it out to their wholesale customers, the phone/broadband companies, to sell retail to their clients.
Let's stop the crap. Get on with the job and provide adequate broadband coverage for all Australia. Enough hype, provide us the service Telstra has arrogantly denied us.
For fair and true competition to operate the trick freeload bludge on Telstra must stop. Until Telstra opponents are willing to invest the market will be distorted by the ACCC requirements that Telstra subsidise their opponents.
Both parties have been guilty of placing the wrong people in this portfolio; apparently neither of them consider it to be important enough to put some thought into the appointment. Alston almost singlehandedly put Australian ITC back 10 years and this bloke, Conroy, is shaping to do the same. Structural separation is the only way to achieve competition, leading to reasonable pricing and innovation. Telstra flat-out lie NOW about giving competitors fair access to exchanges - what makes anyone think their approach will change when it comes to the NBN?
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