[LINK] Telstra's FttN a NoGoNetwork

brd at iimetro.com.au brd at iimetro.com.au
Tue Oct 10 08:44:37 AEST 2006

Telstra's FttN a NoGoNetwork
Darren Pauli
10/10/2006 08:00:00

Telstra is hiding behind its Next G Network to avoid improving much-needed,
national, fixed broadband infrastructure, analysts say.

Telstra launched the $1.1 billion 3GSM network last week which offers download
speeds of up to 1.5Mbps peaking at 3.6Mbps.

According to analysts, the Australian Competition and Consumer Affairs
Commission's (ACCC) inability to enforce its own anti-monopoly broadband laws
has allowed Telstra to stall ADSL2+ and Fibre to Node development until "forced
to do so by its competitors or through regulations, which could be as late as

BuddeComm managing director Paul Budde said while Telstra customers want a
better broadband service rather than another mobile network, the telco's grip
on the national infrastructure means competitors will need to band together to

"While Telstra has been saying 'we are listening to our customers', I haven't
heard any of them asking for yet another mobile network; instead they are
screaming for better, fixed broadband services, but Telstra doesn't want to
hear any of those messages," Budde said.

"While there is a chance that the regional network could establish
infrastructure-based competition it is going to take a long time, and it will
depend on industry cooperation because no single entity has the slightest
chance of taking on Telstra."

Without real infrastructure-based competition, there is no incentive for Telstra
to roll out [FttN or fixed broadband NGNs] until they are either forced to do so
by competitors or through regulations [as] it would prefer to wait until it has
finished [Next G] so it can spread out the investments."

Budde said Australia is being held at ransom while Telstra drags ACCC
legislation through the courts, stalling fixed broadband development and
enabling it to suck revenue from existing infrastructure and develop
unnecessary mobile networks.

This, he says, is dragging Australia behind other countries that are rolling out
NGN-critical FttN infrastructure.

Budde said the stalling of FttN will affect economic growth, export
opportunities and social services such as e-health, tele-education and


Bernard Robertson-Dunn
Sydney Australia
brd at iimetro.com.au

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