Coalition NBN plan provides certainty: Macquarie Telecom

Deloitte Access Economies study shows many businesses not ready for NBN

Macquarie Telecom has said the Coalition’s NBN announcement is “great news” for businesses because it brings certainty that there will be an NBN if there is a change of government.

However, many Australian businesses are still not prepared to take advantage of the NBN, according to a Deloitte Access Economies report commissioned by Macquarie.

Before the Coalition announcement, there was a question of whether it would be NBN or “nothing,” Macquarie Telecom group executive Chris Greig told a media lunch in Sydney on Tuesday.

But Macquarie is heartened that Australian businesses will get some level of “ultra broadband” no matter which party wins the September election, he said.

“There may be some preferences technologically [with] one or the other, but just knowing there will be that capability and that the key principles of the NBN, including ubiquitous access and layer two wholesale-supplied capabilities, are honoured is extremely important to us," he said.

"At the end of the day, we will work with both parties as we always have.”

A major dilemma is to decide whether it’s more important to have fast speeds soon or faster speeds later, he said. The Coalition plan provides slower speeds than the existing NBN, but the party has claimed it will bring broadband to Australians sooner and at less cost.

“As a technology company and an evangelist, I’ll always go for the fastest” broadband speeds, Greig said. But some customers want the NBN “now,” he said.

Macquarie is encouraged that while the Coalition plan has a slower throughput, “it has the ability to be expanded,” he said. Also, the minimum speeds provided by either NBN plan should be “more than adequate” for videoconferencing and other business needs, he said.

Greig noted that much work remains and several questions about the Coalition plan remain unanswered.

Macquarie would like more clarity on how the Coalition plans to manage the transition to its NBN plan, as well as details like upload speeds, service levels, speed of activation and how voice service will be handled, Greig said.

However, he complained that the Labor party’s NBN has so far seemed to prioritise consumers over businesses.

“It’s fair to say their primary focus has been consumer and their business products are lagging a little bit behind, probably about six to nine months behind,” he said.

However, the Deloitte report released today found that while many businesses are eager to get the NBN, many are not ready to take advantage of it.

The report surveyed mostly Macquarie Telecom customers plus a handful of prospective customers. The report considered responses from more than 160 businesses across a “wide range of industries,” Macquarie said.

For example, while 49 per cent of surveyed businesses said they expected teleworking to change the way they do business, about three-quarters of respondents said that they are not ready to manage a remote workforce, according to the report.

The results show a need for businesses to begin to investigate how NBN will impact them and begin to make plans to take advantage of the faster broadband speeds, Greig said.

Follow Adam Bender on Twitter: @WatchAdam

Follow Computerworld Australia on Twitter: @ComputerworldAU, or take part in the Computerworld conversation on LinkedIn: Computerworld Australia

Tags macquarie telecomLaborteleworkbusinessCoalitionNBNbroadband

More about Macquarie Telecom

13 Comments

industry observer

1

Yes, the Coalition plan promises the certainty that it will be slower, and, in the long run, more expensive ... Some certainty !

gnome

2

It seems quaint (to put it politely) for Chris Greig to claim that NBN has 'seemed to prioritise consumers over businesses.'

NBN Co is responsible for building the network, and it's clearly up to the service providers to come up with appropriate business plans at the retail level.

Which some of them seem to be taking their own sweet time to come up with, for reasons that can only be guessed at...

Goresh

3

"But Macquarie is heartened that Australian businesses will get some level of “ultra broadband” no matter which party wins the September election, he said."

FTTN will not provide any form of ULTRAbroadband. At best, after the promised uopgrade it will be 2.5% of the speed of FTTP and even THAT will be very much a BEST effort.

Goresh

4

"A major dilemma is to decide whether it’s more important to have fast speeds soon or faster speeds later, he said."

Actually the question is whether we have barely adequate speeds 20% sooner and faster speeds never or we build a network for the next 50 years because that is teh stark reality.

Almost every dollar invested in FTTN will be scrapped WHEN the network is scrapped.
60,000 FTTN nodes, scrapped. No need in FTTP
60,000 Development Applications wasted, FTTN pillars are "low impact"
60,000 electricity connections wasted, FTTP needs no electricity.
Billions spent on remediating copper for FTTN. FTTP uses no copper.
10's of billions spent on maintaining old decrepit copper, new glass is low maintenance.
10's of billions pent on electricity for nodes that aren't needed by FTTP.
Billions spent cutting customers across one by one from existing services to FTTN because there is no spare capacity. FTTP is installed in parralel and cusomers can be cut across en-masse because the pairs they are using become redundant.

And biggest of all, 10's of billions spent on paying Telstra compensation for a network on it's last legs that would be bypassed by FTTP.

Goresh

5

"49 per cent of surveyed businesses said they expected teleworking to change the way they do business"

Teleworking is an interactive process and FTTN upkload rates are completely inadequate.
My employer encourages teleworking but the sad fact is that my 100Mb/s HFC (faster than the fastest FTTN speed that will be offered) is too slow in the uplink for anything more than the simplest work tasks.

Raymond

6

@ 2 as usual displaying you have no idea!
The ISP's cannot provide any business plans re NBN because the NBN Co have not yet settled on charges, and as you should be aware the ACCC are currently looking into what NBN can charge.
And as everyone else is aware, their is not a business plan yet from NBN Co

R Pickering

7

@6 If there is no business pricing enabled, how come iinet in Mandurah have given us access to our entire 3 story office block, and NBN co have placed a 5 foot high by 3 foot wide box, with 6 lcd display windows scrolling information.
Because these panels are a far cry from the home NBN boxes, so something is planned and we have a business account.

D Newman

8

@7 Mr Pickering, I can see were you have got a bit confused on the issue, so a short explanation, that large panel wasnt fitted by the NBN, however NBN contractors would of worked inside it, as their in building connection box does fit inside it.

And there is a one price structure fits all situations at the moment, there is quite a number of new equipment items waitng for NBN business and waiting to be deployed.

So yes its all rather annoying as progress is being stifled hand over fist in this country, and that applies to all political leanings, well ok maybe a wee bit more stifling going on by some than others(coughcough)

D Newman

9

@1 Something is better than nothing, and some groups tend to always follow the status quo so the fact anything has been announce is a miracle in itself.

However once the true cost is worked out amongest themselves, and a very huge whitewashing spin campaign is launched to cover the whole pre-election promises, I expect the FTTH to continue.

Purely because fibre cable is now cheaper than copper by a big margin, and so much copper is going to have to be switched out.

Off the top of my head I know off 12 suburbs with failing copper (resistence) and some of those had cheaper wrong guage copper run to the houses during the late 70,s early 80,s it was a widespread practice sadly.

Also on top of that was the practise of using a bonding gel on the copper lines, its all over the place, and sadly found to rapidly shorten the cables life, not in weeks obviously but by years, and the stuffed used first over a decade ago will now be shortly raising flags.

Lastly and by no means least, pits and pipes full of water for years, do I really need to explain in depth about that.

Raymond

10

@ 1 As it is Telco building practice all over the world, Telco networks evolve and upgrade as technology evolves, can you guarantee what communication technology will be available in six years, do you know what it will be, Turnbull offers users more than what they are currently getting, users pay for what they require, that is the way of the Telco world.
Can you explain what a family of husband and wife two young kids income of $100k will do with 100mb.

Turnbull offers choice and great competition, NBN offers a monopoly, I thought Telstra was one of those at some stage? and did not NBN Co pay $11+bill to an old monopoly to create a new monopoly.
Remember this NBN via the government will cost $94bill fact!! Turnbull model $30bill fact!! now as you are screaming and getting all worked up, go have a look at the policy doc Turnbull put out has all the numbers that are unchallenged by Conroy, any minister that can save $60bill of my hard earned tax and still provide a better service seems to be a reasonable deal. As the wise man once said, this thing will never be built as spruiked! FACT!
All becomes academic after 14/09.

Dean

11

The current broadband debate is focussed far too narrowly on there being an 'Australian only' set of concerns. All the prime issues that we continually hear about are basically global in nature.

1. The various trials and deployments by Belgacom, TDC Denmark, Telekom Austria, Turk Telecom, China Telecom, Deutschke Telecom, Alcatel-Lucent, Tunisia Telecom are examples of technological developments across the world. All are market based.
Why are they doing what they are doing? Why do they think certain fixes should be near term while other should be long term? They obviously have particular strategies in mind based on the technological and marketing evidence they will be collecting.

2. The findings of advisors to the Senate committee, regarding the impact of ultra HDTV reported in the Australian newspaper (Tuesday 16/4/13) sound a warning about benefits presumed for NBN. It is important to note that the advice is research based and so warrants very serious attention. Globally speaking there is surely heaps of other research based evidence waiting to be utilized. To ignore such advice is to do so at one's peril.

3. The Australian market has not to date responded that favourably to purchasing FTTP based service agreements, even though in this case the installation of fibre is being funded by the taxpayer. Internationally based evidence tells a similar story.

As it stands at the moment, it seems that the market is not yet ready to decide between FTTP, FTTN with ADSL2 and vectoring, mobile mode, or some other technology (yet to come on the scene for trialling, and if valid, then implementation).

The market appears to be adopting a wait and see attitude on the assumption that there is still time to decide.

Overseas, the market appears to be saying two things, first don't second guess for if you do you might come a cropper, and second there is still time enough to decide and commit.

Speculating as to the pause in global advancement of broadband - it might be simply because the market has yet to work out whether a smart phone is a phone with a computer attached, or whether it is a computer with an on board phone connection - the jury is out on the 6.2" smartphone because the market 'test' period is still to run its course.

As yet, we don't know which way the technology/market mix is taking us, and I say this without having mentioned the computer revolution that is fast approaching, namely the quantum computer one. As recently as yesterday, a group of Sydney scientists announced they had developed a 'manufacturable' building block for quantum technology. "This puts it in the same ballpark as the qubit that won its creators last year's Nobel Prize for physics".

Abel Adamski

12

http://www.businessspectator.com.au/article/2013/4/22/infrastructure/coalition-copper-will-fill-telstra%E2%80%99s-coffers

The Senate committee highlight the falsehood (Raymonds "facts" of the $94Bill B.S)
The other Fact $30Bill for the Coalition is just as much B.S - read the supplied link.

Coalition Quicker - Get real , negotiations all over the place (read the provided link), including ACCC and the LNP investigations and PC investigation and biased selective crippled CBA's. Replace most of NBN team and the NBN board, find a sucker to manage the resultant GIMPCo, redesign, re-order and get delivery of equipment, test every single cable pair and determine actions based on results - must be done after extended rain, council approvals, organise provision of power to all the 60,000 nodes.

Ideology and political partisanship have no place in providing essential National Infrastructure to serve the Nation at all levels for many decades to come.

Abel Adamski

13

DEAN
False on so many levels.
Market based is by definition crippled long term

http://www.bloomberg.com/news/2012-12-27/u-s-internet-users-pay-more-for-slower-service.html

Read the Limited scope Corning report, but especially note all the dirty tricks the "competitive" private sector pull to ensure profits.

Comments are now closed

Antique equipment dents IPv6 reliability

READ THIS ARTICLE
DO NOT SHOW THIS BOX AGAIN [ x ]
CIO
ARN
Techworld
CMO