[LINK] ABC Inside Business - "Big Step Forward"

[Richard Chirgwin]

On 26/06/11 2:04 PM, George Bray wrote:
> (A progress report on implementation of the NBN focusing on the
> corporations involved, the technologies and the competition). --George
>
> ALAN KOHLER, PRESENTER: The National Broadband Network took a giant
> stride forward this week when Telstra and Optus signed deals to
> migrate customers and infrastructure to the NBN. Now, in a moment I'll
> be speaking with Telstra's chief David Thodey, but first, James
> Panichi looks at the nuts and bolts of the agreements.
>
> <http://www.abc.net.au/insidebusiness/content/2011/s3253723.htm>
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Returning to the original line, I'm going to take the liberty to 
disassemble the ABC coverage, for no other reason than I think it's 
important to have public errors corrected.
> Telstra and Optus signed deals to migrate customers and infrastructure 
> to the NBN. 
In the case of Telstra, as already discussed in this thread, the only 
infrastructure to change hands will be the lead-in conduit. In the case 
of Optus, no infrastructure will change hands.

> the mother of all infrastructure monopolies may be coming to a street 
> near you. 
Useless hype. Telstra today runs an infrastructure monopoly: why is the 
NBN "the mother of all"?

> We should have looked at a way to encourage competition and rollout in 
> regional areas without necessarily closing the competitive networks in 
> metropolitan areas. 
This is a misconception with a grain of truth. But the HFC networks are 
only minimally competitive. Optus's HFC doesn't compete with Optus DSL 
(for example), and neither HFC network supports ISPs other than the owner.

>  the Government has shut down one monopoly only to replace it with 
> another, while also discouraging other forms of competition like 
> wireless broadband.
The difference between the two monopolies is in terms of access, but 
this is ignored.

The only constraint on wireless broadband - by which I suppose the 
reporter is thinking of 3G services - is that Telstra won't advertise 
its cellular services as a replacement for fibre connections. Telstra, 
Optus and Vodafone will still be free to sell (for example) dongles and 
iPads and so on, and I'm sure that we'll keep buying them.

> the ACCC's concerns over Telstra's continuing role as both a 
> wholesaler and a retailer may yet bring the deal undone.
This statement ignores the change in the wholesale landscape brought 
about by the NBN.

1. Telstra will no longer wholesale customer access network connections. 
In this sense, its "vertically integrated monopoly" will end, and the 
reporter's statement is downright wrong.
2. Telstra will sell wholesale backhaul services. Competition exists now 
(eg, Optus, Nextgen, AAPT, and in metro areas, Pipe Networks) and will 
continue to exist in the future. Nextgen is already positioning a 
wholesale "connect to us for access to all of the NBN" product.
3. Telstra will be able to offer "virtual ISP services", and will 
therefore exist as wholesaler and retailer. However, other similar 
services exist now, and will exist in the future.

RC