[LINK] Telstra stops installing new copper

[David Boxall]

> ''The higher cost of fibre means it's not viable for us to provide 
> fibre to the premise, without a contribution from developers,''
What is the cost differential, given that Telstra would have to provide 
labour, equipment, ducting, etc. anyway?

<http://www.smh.com.au/technology/technology-news/telstra-blocks-sale-of-houses-20100321-qo6i.html>
Telstra blocks sale of houses

MATTHEW MOORE

March 22, 2010

THOUSANDS of new houses will be delayed from coming onto the market, and 
will cost up to $3000 more, because of a sudden decision by Telstra to 
stop installing copper phone lines, large developers warn.

Telstra has told developers it has immediately ceased installing copper 
phone connections in greenfields developments due to a federal 
government requirement for fibre optic cable in new housing from July 1.

Stephen Albin, the head of the Urban Development Institute of Australia 
in NSW, the largest group representing developers of new housing 
projects, said the decision last Thursday had caught many developers by 
surprise and would cause long delays in selling homes, exacerbating the 
housing shortage.

He said developers would not be able to get certificates to satisfy 
councils that telephone services have been installed. Without those 
certificates, developers could not sell the properties.

Mr Albin said he expected the decision by Telstra would effect ''scores 
of developers'' and ''thousands'' of homes.

An email sent from Telstra's Urban Development Manager, Jeoffrey Keogh, 
to developers on Thursday said that ''based on government announcements, 
we expect new legislation to commence from 1 July 2010 that mandates the 
provision of fibre-to-the-premise (FTTP) technology in new housing 
developments.

''As a result, Telstra has changed its policy regarding the installation 
of telecommunications network infrastructure in greenfields developments 
… Where the developer has not made arrangements to have FTTP 
infrastructure installed, Telstra will no longer deploy copper cable.''

While copper was provided free, Mr Keogh told developers it may 
''require'' them to pay a contribution towards the cost of installing 
fibre optic cables.

Fibre optic cable will provide a better service, but Mr Albin said many 
companies were in the midst of negotiating the installation of copper 
when Telstra announced its decision.

''It seems like an entirely commercial decision … it's quite an 
aggressive move,'' he said.

He said Telstra should have provided a transition period until July 1 so 
that companies would not be forced to begin new rounds of negotiations 
with Telstra or other providers to install communications and find the 
money to cover the extra costs. Some companies had been told these would 
be around $3000.

The costs will only be levied on greenfield sites. They will be met by 
the National Broadband Network in existing urban areas.

A Telstra spokesman denied the decision had been made on Thursday and 
said it had been announced at an Urban Development Institute of 
Australia conference a week earlier.

He said the decision was a response to the government's policy that 
''greenfields estates be wired with fibre rather than with copper''.

''The higher cost of fibre means it's not viable for us to provide fibre 
to the premise, without a contribution from developers,'' he said.

The new greenfield requirements are part of preparations for the 
government's forthcoming $43 billion National Broadband Network.

Telstra and the government are embroiled in difficult negotiations over 
what communications infrastructure will become part of the network.

Legislation to pave the way for a separation of Telstra's infrastructure 
and retail arms has also stalled in the Senate. The government delayed a 
vote last week after crossbench senators refused to offer their support.

-- 
David Boxall | When a distinguished but elderly
| scientist states that something is
http://david.boxall.id.au | possible, he is almost certainly
| right. When he states that
| something is impossible, he is
| very probably wrong.
--Arthur C. Clarke