NBN was fait accompli: workgroup

FTTH talks 11 days after panel decision

The $43 billion National Broadband Network (NBN) may have been fait accompli according to industry members who met with Deputy Prime Minister Julia Gillard. Gillard "seemed committed" to a Fibre-to-the-Home (FttH) NBN according to members of a new industry workgroup who met with the deputy PM less than a fortnight after the government received advice from the tender expert panel.

The government scrapped plans for a $4.7 billion NBN citing advice from the panel that the tender bids were unsatisfactory.

Members of the Digital Economy Industry Work Group from the telecommunications, health and energy sectors met with senior cabinet ministers including Gillard and Finance Minister Lindsay Tanner to discuss economic and regulatory issues surrounding the NBN.

e-Applications special interest group chairman and workgroup member Chris Worrad said Gillard had seemed fixated on canvassing opinion on a FttH network.

"She didn't say much else [about the NBN] aside asking about what we thought of a Fibre-to-the-Home NBN," Worrad said.

"You could assume the deputy PM already knew it was happening."

Telecommunications heavyweights and industry groups had pushed for a FttH NBN from the announcement of the plan. Communications Minister Stephen Conroy insisted the tender, which initially called for a network with 12Mpbs minimum downlink speeds, was not technology-specific, however it was clear the taxpayer fund allocation was meagre in comparison to the estimated $40 to $50 billion required to build an FttH NBN.

The Feburary meeting included Austar CEO John Porter, Google Australia, Fairfax and industry consultants Phillip Long and Belinda Tyson. The workgroup currently has about 30 members and will meet with the Australian Telecommunications User Group in Canberra later this month to discuss the "machinations and machinations" of the NBN.

Worrad said the group is developing a response paper through a private online wiki to the government's NBN regulatory reform paper, due to be issued in June this year. He expects the government's paper to focus on upfront access terms; new powers for the Australian Communications and Consumer Commission to impose binding rules of conduct; the vertical integration and functional separation of Telstra, and the horizontal integration of fixed line and telco interests in respect to content provider monopolies.

More about: Austar, etwork, Google, Telecommunications User Group, Telstra
References show all

Comments

1

BILL

Sat 09/05/2009 - 18:29

Unwire the Wired

you could save a lot of money by Building Wireless WiFi Internet look at the size of the new laptops on the market there not made for home use held to ransom with a fixed line telephone is bad Enough

2

Chris

Sun 10/05/2009 - 09:35

To wire or not to wire, perhaps a bit of both

Fiber to the node is important for public infrastructure such as hospitals and schools to allow high density transfer of all types of digital content. This may also go a way to reducing some operating costs by using IP telephony and other associated tech.

However, I see little benefit is having fiber to the house for the general population, IMO, we would be much better served by having increased wireless coverage as personally, i spend about 50% of my time surfing the net on my mobile! While this is obviously not where most people stand at the moment, it is a sure sign of the times to come.

Whilst fiber to the home would be great for me, (i could run my own web and email servers and reduce my overheads) it is not important to everyone. Localised wireless distribution networks, i believe, would afford a far better bang for buck in an initial roll out in metropolitan areas and would be far less costly in rural communities.

I fear that the pressure being brought to bear from big telecommunication companies with regards to their ongoing and existing business models is outweighing the long term benefits of a hybrid FTTH, FTTN and Wireless infrastructure projects.

For example, it is not in Telstra's or Optus's best interest for people to start using services such as Skype for VIOP. Which is a fraction of the cost of a regular telephone.

Food for thought!

3

Shaun of Sydney

Sun 10/05/2009 - 17:40

Totally agree with the above posters- there's no need for everyone to have FttH, it seems that it's more about Telstra and it's copper network that's putting a spanner in the works. Surely the govt can just override the claims of Telstra for the greater good of us all?

4

cyberdoyle

Sun 10/05/2009 - 20:00

FttH essential

mobile computing is very important, but will never deliver capacity or cope with peak times. Fibre to the home is the way forward, for all countries, and the ones that get there first will lead the way, good luck Australia, well done. chris

5

Anonymous

Sun 10/05/2009 - 20:39

Ha ha.. You're kidding me right?

It's about Telstra and the copper network?? How about the Plan of this so called 'government'.. 'Investing' our taxpayers dollars into a NBN (although the corporate players walked away from it as it is unprofitable) with the expectation of making a profit, and then, even worse, that they can sell it on once it's been operational for a couple of years..

Can you honestly expect any company of repute picking up this 'NBN Company' after witnessing the government regulation strangulation of Telstra that has been so blatent over the past few years?

No one will touch it with a ten foot barge pole..

If you don't know what I'm on about, do a simple google scan of the OTC/Telecom Telstra debarcle of the last fifteen years

Cheers.

6

Anonymous

Sun 10/05/2009 - 22:29

Are you a Telstra employee ? or investor?

Telstra deserves to be hammered, as they reek of arrogance, just like yourself!

Bring on installing a new fast truly wholesale only network, and simultaneously make the Telstra monopolised copper obsolete, and get rid of all the nonsense that Telstra goes on about.

In the country where I live that is just the plan - replace copper to the home with a fibre network. Wake up Australia!

7

Anonymous

Sun 10/05/2009 - 23:15

Why should taxpayers (us) spend $40 BILLION plus on a network that will have users tethered to their homes 10 years from now, when Wireless is clearly the future?

I would much rather have internet that goes with me everywhere I go, and the technology is increasingly there to allow it. Even Google are bankrolling a constellation of satellites to enable backhaul transmission.

The arguments about wireless not being good enough in peak times or for bandwidth intensive activity will not be relevant in a decade.

This is yet another taxpayer funded white elephant... behind the times before it's even built. That's what happens when bureaucrats are put in charge of technology... "a camel is a horse that was designed by a commitee"

8

Anonymous

Mon 11/05/2009 - 11:29

Wrong

You are wrong, Wireless internet will always have problem with density and latency. Do some reading first before you start blabbering on about future developments.

Why do we even have internet? we should just wait for teleporters and star drives...

9

Chris

Mon 11/05/2009 - 12:15

The only one kidding is you

What you think Telstra is the innocent victim?

You poor deluded soul. Telstra has constantly and consistently failed to operate on a fair basis. They have been found more than once to use illegal methods to try to bring down their competition.

Take a look at this article
http://www.australianit.news.com.au/story/0,25197,25414690-15306,00.html

I am not a Rudd/labour fan I believe ultimately they will bankrupt Australia as almost every labour government in the past has tried to do BUT when it comes to bringing Telstra to heel they have done a marvelous job. perhaps a 43 Billion dollar unthought out splurge is not the way to do it. but they had to break Telstra's arrogant and ultimately self defeating attitude.

If Telstra had embraced competition and treated their wholesale department as what it should have been, that is a honest and fair services delivery mechanism rather than a way to control their competitors, none of this would have been necessary. We would already have FTTN (fibre to the node) which is the lowest cost option and Australia would be well on its way to a NBN already. Instead Telstra and its head honcho Sol Trujillo used a loophole in the rules to refuse access to third parties to FTTN. So the government had no choice but to sidestep Telstra and implement a completely separate system.

If you are going to start from scratch why stop at the node? Hence we now have a $43b FTTH replacement for Telstra being mooted.

This party is far from over and my guess is an agreement will be reached otherwise Telstra might as well scrap its existing network. I can't see that happening.

This whole debacle is a game of one-upmanship. One that Telstra arrogantly believed they could win.

Just for another example of Telstra's attitude. Apparently they have been rolling out Dark Fibre (high speed fibre optics) for the express purpose of shooting down a competitor should one attempt to gain a foothold. They had no plans to use it unless a competitor forced them to use it.
http://www.itwire.com/content/view/22558/1151/

So whose propaganda have you been listening to?

DC

10

Anonymous

Mon 11/05/2009 - 12:46

Wireless is the Future

Wireless is the future.

The LTE roadmap will provide downloads of 100mbps within a few years. That IS big bandwidth, and it is only the beginning.

Issues of Latency and throughput will cease to be an issue as speed increases and the technology evolves.

Seriously guys, you have the same argument of those who though aviation could never possibly replace shipping as a passenger transportation medium. Or that mobile phones would never replace fixed lines. I recall many years ago that a lot of people said the internet would never catch on due to technical limitations and complexity.

The Govt should fund backhaul fibre to mobile base stations, and allow ISP's to aggregate their transmission on fibre. That would truly provide a level playing field for the carriers to provide 100mbps mobile broadband to the entire nation within 5-7 years. Much more competitive, much more suitable to the issues of population density in this country, a more future proof technology, and at a fraction of the cost to taxpayers.

These sorts of capital intensive FTTH rollouts AT BEST make sense in densely populated areas such as Korea and Western Europe. Not here.

It serves neither the commercial or technology realities of the Australian landscape.

11

Anonymous

Mon 11/05/2009 - 13:00

wireless

One of the comments below said:

"Right now, Wireless is only good for browsing the web and email, it has one plus, the fact it's mobility."

On a daily basis I watch youtube, do banking, facebook, participate in forums such as this, and navigate via maps on my phone. It,s a Nokia E71 (probably not as good as the iphone). All of this is done via an existing mobile network. And not even the best mobile network in australia.

I can only conclude that the mobile service will get better and better. Before too long a home modem using a mobile network will provide service equivalent to anything a socket in the wall can deliver.

12

Anonymous

Mon 11/05/2009 - 13:05

Wireless IS the future

Just the current incarnations arn't sufficient.

To rule out wireless completely, is ridiculous.

In very innter-metro areas (and business areas), FTTN/FTTH makes perfect sense, but when we're talking about Australia's typical low-density urban sprawl and regional areas, to implement FTTH is UTTERLY F____ RIDICULOUS! Absolute waste of money.

People love mobility, and that love will only grow.

What we need is FIRRE BACK HAUL into all regional areas throughout Australia. From that, competitors can build ADSL or WiMAX POP's and we can get things moving.

Kinda like OPEL? Remember that? Other than the crappy unliscened wireless spectrum part, it was a bloody good idea. Typical of the dick heads in Labor to kill it - Now we're stuck with a farce for at least 5-10 years.

Australia has 100Mhz of 2.3Ghz WiMAX spectrum that isn't used, and a 100Mhz in the 2.5Ghz range. If the government actually bothered to use some of this spectrum, we could have more than adequate wireless coverage for everyone.

Why people bitch piss and moan about wireless, is due to the fact that the only decent wireless internet is from the 3G providers, who don't care about mobile internet (as if the performance is good, it'll merely undercut their voice revenue via VoIP etc), and in any case, don't have the CAPACITY to roll out REAL WIRELESS. Telstra, Optus, Vodafone etc.. only have about 5Mhz to play with, and in any case it's dedicated to soon-to-be-superseded 3G anyway!

3G WAS NOT DESIGNED FOR DATA

13

Daniel

Mon 11/05/2009 - 13:31

But LTE isn't available, and we need spectrum for it to be available.

Fibre is only seen as major expensive because of the Labor costs involved, it has nothing to do with "Commercial, or Technology realities of the Australian Landscape".

We would not be seeing Fibre being installed at all (including that of Green estates (i.e. the new estates).

14

Daniel

Mon 11/05/2009 - 13:49

Companies already doing that.

Internode and iiNet are doing wireless hotspots already (Optus and what not have USB Wireless) - alot of companies got Wireless networks up and running now too.

We eventually will need to replace the copper network, it's unfortunate that so many people do not see that the advantages of Fibre network (apart from all being on the same network, and not connected to RIMS etc) - no private company is willing to put the dosh ($$$$) into upgrading the network, because they want something in return (special treatment etc).

We wouldn't need to do this if we had the companies working together on upgrading the copper network, but unfortunately it's all about greed and control.

The problem with Wireless it needs spectrum (especially for big bandwidth) - and we don't have much of that to spreed over the country side - thats why it won't work here in Australia.

15

Daniel

Mon 11/05/2009 - 13:52

Nope, Constitution and losts of delays (political too).

Fixed line networks with Wireless, just not by itself.

16

Anonymous

Mon 11/05/2009 - 13:52

Wireless future, Fiber now.

Some of you seem to be mistaking current wireless technologies for future wireless technologies.

The current wireless technologies wouldn't be able to handle EVERYONE using it - that kind of bandwidth (in densely populated areas) just isn't possible without putting a tower every couple hundred metres.

Forget wireless speeds, forget latency (which by the way is how long it takes for a packet to be sent and acknowledged - not how how many can be sent at once) - it's bandwidth that is needed.

You could potentially do it with thousands upon thousands of wireless base stations around the country with fiber backhaul - but then, you STILL need the fiber!

Yes, Wireless will be the way of the future - but the technology just isn't capable of what you're suggesting right now. So either we wait until it is (years + a few for it to be afforable) or we do what is guaranteed to work now (fiber) and then invest in wireless later.

17

Anonymous

Mon 11/05/2009 - 13:54

Wireless future, Fiber now.

Some of you seem to be mistaking current wireless technologies for future wireless technologies.

The current wireless technologies wouldn't be able to handle EVERYONE using it - that kind of bandwidth (in densely populated areas) just isn't possible without putting a tower every couple hundred metres.

Forget wireless speeds, forget latency (which by the way is how long it takes for a packet to be sent and acknowledged - not how how many can be sent at once) - it's bandwidth that is needed.

You could potentially do it with thousands upon thousands of wireless base stations around the country with fiber backhaul - but then, you STILL need the fiber!

Yes, Wireless will be the way of the future - but the technology just isn't capable of what you're suggesting right now. So either we wait until it is (years + a few for it to be afforable) or we do what is guaranteed to work now (fiber) and then invest in wireless later.

18

Anonymous

Mon 11/05/2009 - 17:44

The future backbone is FOC plus ancilliary wireless

Some of the posts here seem to be assuming that their present wireless Net access needs will be the same in 10-15 years.

They won't, for two reasons. In a few years time we will be routinely using big-volume apps unthought of today, and only fibre will offer the consistent and reliable capacity needed.

And if the wireless networks were to be expanded in a probably futile attempt to meet the backbone capacity then required, the resulting level of EMR emissions in urban areas would rise to an unacceptable level.

19

Anonymous

Mon 11/05/2009 - 19:01

When are people going to learn that the government announced a Fibre To The Premise (FTTP) not Fibre To The Home (FTTH).

The government is planning on giving access to the fibre to business and commercial users as well as home users. FTTH implies it is only going to be for HOME users, which is not the case!

Therefore I would refute your claims that FttH is essential.

It will also be interesting on how many people will take up an optic fibre connection if the access charges are much more expensive than the current ADSL services.

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