Resellers question broadband price, Abbott's vision

By Negar Salek on Aug 11, 2010 2:38 PM
Filed under Communications

Is the Coalition's broadband policy a mish-mash or well-priced?

The telco wholesale channel is split on the Coalition's broadband policy, announced yesterday.

Business owners told CRN they were "devastated" with the Opposition's broadband plan, while others said the Coalition's $6 billion price tag was more fathomable than Labor's $43 billion scheme.

The Coalition yesterday said that it would sell off the NBN's assets and replace them with funding for fibre backhaul and wireless access networks if it were to win government in the upcoming federal election.

But telecommunications analyst Paul Budde questioned the Coalition's vision. 

"It appears the current plan will simply take us back to 2007. Perhaps [even] a bit further back than that. It would basically mean going back to a fibre-to-the-node plan, a choice that everybody else in the world is now rejecting.

"Another indication of the lack of vision is the remark that people don't need high-speed broadband now," Budde wrote in his blog yesterday.

Similary, Telecoinabox founder Damian Kay said he was "devastated" yesterday. The telecommunications franchiser and Telstra partner viewed Labor's NBN policy "as a long-term investment - a scalable, future-proof infrastructure" to arrive "just as download requirements are just going through the roof".

Kay said he feared the Coalition's policy would stagnate innovation.

"Technology sits there and waits for the bandwidth to be available. It's just waiting for the bandwidth to catch up to it. It just seems like the Coalition's strategy is a mish-mash of technologies," he said.

But not all business owners in the IT or telco channel were as disappointed. Brennan IT managing director, Dave Stevens, questioned Labor's NBN. He said the Government's price "was a lot", while the $6 billion proposed by the Coalition was a "far more reasonable investment".

Stevens was also concerned with the lack of communication from Labor.

"Almost nothing has been communicated," he said.  "They haven't told us as a channel what our wholesale arrangements are. We don't know whether there will be business grade options.

"It's just another tale to us - when it does become available we'll have to assess it," he said.  

Similarly, the chief executive officer of mobile carrier and network operator Indigo Telecom, David Ruddiman, told CRN he supported a national broadband network, but preferred it to be provided by private industry.

"I think a public-private partnership is the best way to do it over a pure public roll out," he said. "In terms of actually investing capex (capital spending) and opex (operational spending) - in terms of getting a decent return on investment - the private sector has a history of being better at it than governments around the world.

"I think the the Coalition's approach is a more inclusive public-private outlet. It's more of a partnership arrangement. I think is a better outcome for taxpayers."

What do you think? Are you aching for 100Mbps or do you feel the price is too high? Join the debate below.

 
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Resellers question broadband price, Abbott's vision
"I think we are all missing the point here. 1. We are not just talking about the NBN being about Internet connectivity but Phone, Internet and Pay TV etc all rolled into the one network. Though I ..."
 
 
 
 
Comments: 2
RandomBytes
Aug 11, 2010 9:07 PM
Folks, how can a government that cant handle stuffing fluffy stuff into ceilings or building a few school buildings possibly be trusted to spend 43 billion of YOUR dollars? Then they propose to sell it back to Telstra in 5 years time. Why?
This is the plan - Treasury know all about it and it's not like it's secret. So, why waste so much money that can never be covered by any sort of rational business plan - its good money, borrowed at that, down the drain.
Bill Gates' idea was better - put up a grid of satellites and use a lot of uplinks and down links feeding into a grid across the country. Way cheaper than 43 billion - just ask the US dude at AAPT. Or talk to any of Canadians out in the sticks who have way faster links than we do.
Yes, it would be good to get on the gravy train but 43 billion is at least 30 billion wasted, if not more. They just seem hell bent on making another Telstra!!
Francis
Aug 11, 2010 11:24 PM
I think we are all missing the point here.

1. We are not just talking about the NBN being about Internet connectivity but Phone, Internet and Pay TV etc all rolled into the one network. Though I do have major problems with the minister in charge Conboy who seems to be making it up as he goes and is not transparent.

2. The NBN can not be compared to Telstra as it will be a carrier only and have no retail arm, so it will not be in competition with its customers.

2. The NBN should be seen for what it is, a long term solution to our communications future.

3. Abbott's quick fix is just that. A grab bag of yesterdays technology cobbled together as a cheap alternative which will require upgrading to a full Fibre Optic network as we move forward. This solution in the end will end up costing us more.

4. I may have paid more in relative terms for my phone calls under the PMG than I do for to Telstra but I got a reliable service and breakdowns were fixed usually within four hours where as to-day I can and have waited days for my phone to be fixed. On two occasions it took a week for my phone to be fixed.

5. we should be looking to the future, especially long term and not looking over our shoulder to the past. A quick and cheap alternative will in the end, end up costing us more.

Do it once and do it properly.
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