[LINK] Telstra propose biggest rollout in Australia's

Stewart Fist stewart_fist at optusnet.com.au
Thu Jan 18 18:59:11 AEDT 2007

> But wasn't there a fateful
> 3 billion dollar rollout of FTTN services that was scotched
> when Johnny and Sol couldn't stay in the same room with each other
> last year?!   What is going on here?

There is no way the FTTH service has been scotched. It has only been
delayed.  Telstra can stall as long as it likes, knowing full well that this
puts some pressure on Liberal Coalitions and Labor Oppositions alike to not
interfere.  Since Telstra is a monopoly by virtue of owning the street
ducting, it can afford to wait.  There isn't a wireless protocol that can
challenge it.

The wait will allow Sol to raise the dividend on Telstra's shares, thus
shoring up his reputation.  This will keep Johnny happy going into an
election, so the Liberals won't be pushing too much.  They will let Graham
Samuels at the ACCC do all the huffing and puffing, knowing that he doesn't
have the legal clout to do anything real.

Delays of this kind don't usually cost the country much anyway, unless the
efficiencies of the new technology makes export-earning businesses more
profitable.  And this is doubtful with broadband -- in fact, it will
probably increase our adverse balance of payments.

If Telstra waits a few years more, the FTTH implementation costs will be
lower, and the standards more stable.

(Broadband isn't likely to be a policy that decides votes anyway.)

Stewart Fist, writer, journalist, film-maker
70 Middle Harbour Road, LINDFIELD, 2070, NSW, Australia
Ph +61 (2) 9416 7458

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