David Quilty, Telstra group managing director, public policy and communications | November 20, 2008
A GLIMPSE into the not-too-distant future best illustrates why Australia needs a world-class, high-speed National Broadband Network.
Telstra has the network-building experience, financial capacity, technical capabilities, and the skilled workforce to build the NBN, says the telco's spokesman David Quilty
Imagine households across the nation where:
• Dad is running a home-based business.
• Mum is videoconferencing into a work meeting;
• Children are playing networked video games;
• Teenagers are remotely attending university lectures; and
• A visiting grandmother is undertaking a remote consultation with the family doctor.
And all of these activities are happening simultaneously, under the one roof. Such a scenario is not 22nd Century science fiction. It is the reality Australian households can expect in the next few years.
The internet is changing the way we talk with each other and communicate with the world. How we live, how we work and how we play will be revolutionised as high-speed broadband transforms the daily activities of families, businesses, government and community organisations.
A quick look at the recent surge in information flows – data volumes across Telstra networks are almost 100 times greater than six years ago with no sign of a slowdown – provides the best pointer about future needs. In the digital era, it is easy to see how speeds of 20, 50 or even 100 megabits per second may soon not be enough for families and businesses.
It underlines why Australia needs a high-speed National Broadband Network.
We’re talking about a network that stands the test of time; nation-building infrastructure that delivers real-time, high-definition interactive video communications. Upgradeable to take advantages of inevitable advances in technology, a National Broadband Network is the essential infrastructure of an information economy and a knowledge society.
The National Broadband Network distinguishes itself from other infrastructure projects concentrated on a particular geographical region or industry sector because it benefits all Australians and the nation as a whole.
Even the most conservative estimates predict the National Broadband Network – the most challenging project on the Government’s infrastructure shopping list - will inject $2.3 billion a year into the economy during the construction phase alone.
Such a project is a complex challenge. It is 21st Century nation-building, requiring billions of dollars in investment. In all honesty, with all of our capabilities and resources, even Telstra will struggle to do this.
But we have demonstrated that Australia can be a world-leader in telecommunications. We have proven it with the Next G and Next IP networks, and media assets such as Sensis and Foxtel. And we’re intent on proving it again by bringing the best fibre-to-the-node network to Australia. We have the network-building experience, financial capacity, technical capabilities, and the skilled workforce. We are serious about wanting to build the National Broadband Network. For three years now, we have undertaken the detailed, intricate planning.
However we have made it absolutely clear that if further separation is part of the National Broadband Network, we are simply not in a position to bid or to build. Our plan to build the National Broadband Network is predicated on Telstra continuing to be a fully integrated company. With further separation, the business case for an NBN just doesn’t stack up.
Telstra’s National Broadband Network will be good for competition and in turn, consumers. It will be an open access network. We’ve made that clear. Our competitors will have access on an equivalent basis as Telstra itself. . And unlike our opponents, we are not asking for a prohibition on competing infrastructure.
Australians will be hearing a lot more about the National Broadband Network in the near future. Telstra has the funding, the globally recognised prime vendor, the skilled workforce, the know-how and the detailed plans to meet the challenge of building a world-best National Broadband Network. We must get it right. Australia can’t afford a second-rate white elephant National Broadband Network that fails to keep pace with our overseas competitors. So let’s get on with the job and do it right for Australia’s future.
The Super Blog will have the unedited opinions of leading players in the $15 billion plus NBN project. It will run over a few days and feature leaders from the telco and government community. Shadow Communications minister Nick Minchin kicks-off the series; his counterpart in government, Stephen Conroy is the final blogger.
Day 1: Shadow Communications minister Nick Minchin
Day 2: AAPT CEO Paul Broad
Day 3: Terria chairman Michael Egan
Day 4: Jeff Lawrence, Secretary, Australian Council of Trade Unions
Day 6: Maha Krishnapillai, Optus government and corporate affairs director
Final day: Stephen Conroy, Minister for Broadband, Communications and the Digital Economy
Your Comments:
18 Comment(s)
Put me in a queue. Make me 'talk' to a robot voice that always gets it wrong. I can wait 40 mins or more because the network is 'experiencing longer than normal delays' (Like every &^%$ day). I dont mind.. I think its only right Telstra should minimize cost and maximize profit -AT MY EXPENSE ALL THE TIME!!! No Sir.. Your spin is transparent.. Im on a RIM exchange.
Give the contact to a monkey with a soldering iron.. But dont give it to Telstra. Telstra TOTALLY FAIL at Customer Service.
What a difference the Telstra sensible debating attitude to Telstra opponents who simply try to destroy a great Australian company. Telstra will deliver. Terria will terrify. Don't be suckered Senator Conroy.
The Terria Consortium (read Optus) would need to obtain the majority of finance for their NBN bid from its parent company SingTel. SingTel would obviouslly do the sums (a) invest billions in Australia and get a 100% return over 6 years, or (b) invest billions in China and get a 1,000% return over a similar period. SingTel will not be financing the Terria bid so any bid they string togeather will be frivolous. If Telstra does not bid then it will expose Terria for what they are, opportunists wanting the Autralian Government and Telstra's share holders to finance a project that they (Optus) will profit from without sharing the financial risk.
David Quilty shold declare his previous political affiliations as chief of staff for former Howard Government minister Richard Alston. What did Alston do in all his years as Communications Minister? Nothing!
Cool, we need a national broadband network. Go ahead and build one Telstra. Why does Telstra expect taxpayers to subsidise their profit and investments? It's time Telstra grew up and got on with business as a private company instead of looking to the Government all the time.
It has always been totally unacceptable for every consumer of telecommunication products that Telstra has resisted splitting its business into separate network and retail businesses, it has never been technically impossible to do, and it should never have been tolerated by the previous government. Telstra's intransigence is all about maintaining a network monopoly that is only in the interests of shareholders who have no interest in making financial sacrifices for the common good of all Telstra's direct or indirect customers. Surely, the global financial debacle of recent times has clearly demonstrated that the sort of arrogant capitalism displayed by the 'three Amigos' and the Telstra board is way past its use-by-date.
"Our competitors will have access on an equivalent basis as Telstra itself."
Does this mean that the NBN will charge the same rates to Telstra Retail, Optus, iinet and the like?
"With further separation, the business case for an NBN just doesn%u2019t stack up."
Does this mean that Telstra would lose money?
I would love to see the numbers for the two business cases.
Tom
I can tell you that Telstra acts purely in its own interests (under the guise of shareholder interests) to the point of being corporate psychopaths. No wonder it seems to be held in contempt by most of the community. For too long we have suffered under the monopoly allowed these people and I for one would simply rather go without than let them control any more of our vital assets. Future technology may well make any current NBN plan redundant but Telstra will have us locked out of it under an NBN agreement. Take my word for it!
Well that was a great opportunity lost. A load of patronising waffle and unsubstantiated claims spruiking various products - it would be better placed in the Telstra Annual Report. No real explanation why Telstra shouldn%u2019t be separated, no discussion on the best technologies to deliver the services, nor how it would fairly deal with consumers, particularly in the regional markets. They after all would be the real beneficiary of any NBN. The argument %u201Cthe business case doesn%u2019t stack-up unless Telstra remains integrated%u201D may be true from WITHIN Telstra, but it totally ignores establishing a competitive market where the providers make a fair profit and the customer gets the best deal possible. If Telstra itself actually had access on an equivalent basis as its competitors, shouldn%u2019t the business case be the same? Does Telstra really think we%u2019d believe its wholesale and various retail divisions wouldn%u2019t cross-subsidise to the detriment of competitors? I am one Telstra shareholder and reluctant customer that looks forward to it being split into a number of operating companies that can focus on their core competencies, rather than the high-charging, arrogant monolith we have now.
being a victim of telstra's network living on a rim system. I would question telstra's ability to claim that they can create a world class network.
Clearly David Quilty is having a lend of us with this blurb. Because Telstra controls the infrastructure it has an effective monopoly on communication services in Australia. By splitting Telstra up the market will be open to greater competition, which can only be good news for Australian consumers!
Telstra cannot seriously claim to have demonstrated it is a world leader in telecommunications - it provides an appalling service to many regional and remote areas of Australia, and to many suburban parts of larger cities - just ask anyone who has tried to access 'Voip', and who is outside the Optus network (Telstra will not provide Voip because it competes with its fixed line service). This situation is not going to change as long as Telstra controls the infrastructure.
Instead of acting the bully and refusing to play ball why doesn't Telstra simply put in 2 bids - one bid assuming Telstra is not broken up and one bid assuming the break-up happens. If Telstra cannot be competitive if the break happens, then give the contract to someone who is. Sounds like Telstra doesn't want to drop the massive salaries it pays its directors. Sounds like time for a change.
why isn't rudd putting those billions into building and quilding quickly, the national broadband network? Picking up all those retrenched workers and paying them to build this essential piece of national infrastructure. Instead we're giving the money away to pensioners and telling them to spend spend spend? At least at the end of this downturn we'd have something to show for all out savings.
Not a word on the subscriber cost of super fast broadband, or the current market demand for such a service. And not a word on how the current broadband service fails to meet current or future demands.
The entire process of deregulation and introducing competition into the telco sector was stuffed at the very beginning. The government should have retained ownership of the backbone of the network and left the private sector to provide the retail services and connections. With the evolution of the technology this becomes even more practical, where the government owns the national fibre optic network and just auctions bandwidth to the various private sector companies. Now is an ideal time to rectify the problem.
If Telstra don't bid then government should just build it themselves.
The biggest danger we face now in this economic crisis, is not the string of bankruptcies, many which are deserved, but rather the bail out of companies which have become to big to fail - the moral hazard which this creates threatens the very foundation of our free market system. Telstra is one such company that is too big to fail, returning the core communication network to government ownership will address this fundamental market defect because given the choice between a company that knows it is too big to be allowed to fail, and becomes fat, bloated and inefficient as result, and a government owned and operated company, I will go for the government company every time. I am not saying the Telstra is about to fail, I am just pointing out that the structural defects that are pulling down the global economy at this moment are also present in our telco sector and this is an ideal opportunity to fix it.
Telstra Mr. David Quilty, for many years a go, should be building of the NBN, but with all copper cables, Telstra make 20 Billions profits. Sorry but I thing so, is the time for new Company, take over of the NBN, low prices, high speed, billing absoluty clear, and Telstra was the Leader in 1990, but not now, My support for the new Company bid the Tender.
This whole process is as whacky and the notion of separation when you consider the advantages of having a robust telco such as Telstra when you concider a small population means slim pickings and in the end you will get second hand technology rather than world leading that what optus will offer.
Telstra, please put in your bid and spell out what you have said in this blog. You owe it to the Australian people. Your case is compelling and overwhelms all the negative nonsense pedalled by your competitors. Any government that rejects the bid would have to have rocks in its head ( and face the consequences)especially in today's financial environment when reliable companies with financial strength, deep experience and collective knowledge are few and far between.
Does anyone seriously believe Telstra will not bid? Citigroup have already said if they dont bid they stand to destroy $10 billion of shareholders value. Telstra are supposed to be all about protecting shareholder value at all cost, if you believe their spin. Not lodging a bid clearly would not do this.
The ridiculousness of Telstras bully boy stance can clearly be seen when you consider simply lodging a bid does not obligate Telstra to build the network. If they are chosen as the winner, and the govt want to do something they dont like, they can walk away, just as any other bidder can.
Telstra will do yet another massive backflip and lodge a bid. Nothing surer.
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