[LINK] NBN & Fielding

[stephen at melbpc.org.au]

One wonders what Fielding decided?


Broadband is in Fielding's hands 

by Lenore Taylor, MARCH 13th, 2010
<http://www.theage.com.au/technology/technology-news>


The fate of the Rudd government's $43 billion national broadband strategy 
rests with the Family First senator Steve Fielding, who will spend the 
weekend deciding whether to support legislation aimed at forcing Telstra 
to sell its assets to the new high-speed network.

On Thursday key players were of the opinion Senator Fielding would vote 
with the Coalition to block the bill, making it more difficult and almost 
certainly more expensive for the Communications Minister, Stephen Conroy, 
to do the Telstra deal that is crucial to the success of his high-stakes 
broadband policy. 

But Senator Fielding told the Herald that after meeting NBN Co's chief 
executive, Mike Quigley, last week he was undecided and would spend the 
next few days talking to key players including Senator Conroy and 
Telstra's chief executive, David Thodey.

"I am reluctant, I am worried that this is a very aggressive way for the 
government to try to force a deal, but I could still be convinced there 
is reason and urgency for this bill to go ahead," Senator Fielding said. 

"I don't want the new [broadband network] to end up an expensive white 
elephant, but I don't want to see Telstra shareholders dudded either."

The legislation, unveiled by Senator Conroy last year, is aimed at 
speeding up the negotiations for Telstra to sell key assets to NBN Co so 
the government can reveal a business case and cost for its plan before 
the election.

Depending on the price negotiated, a deal to incorporate Telstra's 
existing infrastructure could make the total cost far lower than the $43 
billion ''worst-case scenario estimate''.

The Coalition insists it is unfair for the government to "hold a gun to 
Telstra's head" in negotiations.

"Telstra and its shareholders should be allowed to make a commercial 
decision based on what is in the best interests of the company, not what 
is in Labor's short-term political interests," the opposition's spokesman 
on communications, Tony Smith, said.

"This attack on Telstra's 1.4 million shareholders is unprecedented. The 
government's problems are all of its own making, it recklessly committed 
to this project without a business plan when everybody knows the 
[network] cannot be viable without Telstra's participation."

Senator Conroy said he remained in negotiation with all crossbench 
senators.

Next week the government could also make public a crucial implementation 
study for the project which was not subject to any cost-benefit analysis 
before it was announced.

Source: The Sydney Morning Herald

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