[LINK] Libs won't cancel NBN - Turnbull

Fri Jun 29 19:29:36 AEST 2012

[Since this is a 180deg. turnaround, not sure who to believe. ]

We will not cancel the NBN: Turnbull

Published: June 29, 2012 - 4:48PM

Nearly two years after Tony Abbott vowed to tear 
down the beginnings of the national broadband 
network and to "demolish" it, the Coalition now 
says it will not roll back or cancel it, if it 
comes to power at the next election.

Shadow Minister for Communications and Broadband 
Malcolm Turnbull told IT Pro firmly this week: 
"No, the Coalition will not cancel or roll back 
the NBN. The NBN will continue to roll out but we 
will do so in a cost-effective manner in particular in built-up areas."

As the idea of a faster, ubiquitous always-on 
affordable internet matures in the minds of 
Australians, and 
<http://www.smh.com.au/technology/technology-news/56-per-cent-of-australians-support-nbn-poll-20120221-1tk6r.html?rand=1340942217817>more 
people show support for the infrastructure 
project, it is becoming increasingly difficult 
for the Opposition to continue its original 
stance. Opposition Leader Tony Abbott has 
<http://www.smh.com.au/small-business/smallbiz-tech/abbott-again-slams-ripoff-nbn-project-20120103-1pj7p.html>repeately 
slammed the $36 billion project as a "rip off" 
and a 
<http://www.smh.com.au/it-pro/government-it/broadband-project-is-white-elephant-abbott-20120103-1pjm7.html?rand=1340948713338>"white 
elephant".

At the same time, a rollback is rendered more 
impractical with every metre of fibre optic cable 
NBN Co lays, and with the increasing number of 
NBN-packages released by internet service 
providers (ISPs) in those markets where new services are made available.

Mr Turnbull said the Coalition now believes "all 
Australians should have access to fast and 
affordable broadband but that the NBN [Co] has 
gone about that objective in the single most 
expensive and time-consuming way possible."

Telecommunications analyst Paul Budde says the 
Coalition now accepts the NBN is necessary but 
differs in its funding model. Mr Turnbull 
believes the private sector, not the Government, should finance the project.

"Malcolm Turnbull and [Liberal MP] Paul Fletcher 
very well understand broadband. Both are among 
the best informed in Australia. Unfortunately 
politics comes in the way and it's been a major stumbling block,' Budde said.

"Malcolm Turnbull is keeping his powder dry – he 
is not going to do anything until much closer to 
the election. My guess is then they'll come up 
with a policy that will show the importance of broadband to the economy."

Mr Budde said a cost-benefit analysis of the 
network– which the Opposition always said was 
missing from Labor's blueprint – should be now be included.

Mr Turnbull had told the 
<http://www.malcolmturnbull.com.au/media/speeches/three-years-of-nbn-2-0-what-have-we-learnt/>communications 
industry in April the Coalition's policy was to 
achieve "a comparable outcome – a ubiquitous very 
fast broadband network, but sooner in terms of 
rollout, cheaper and more affordably to 
consumers. But had not yet committed to keeping 
whatever infrastructure and contracted 
installations it could potentially inherit."

He told Radio 2UE earlier this month a 
Liberal-National government would "complete" the 
job, rather than rip up any cables.

And now he said he is not prepared to cancel the 
estimated $1.8 billion worth of contracts 
underpinning the rollout, already signed by NBN Co.

"The Coalition's aim is not to cancel contracts 
but rather, renegotiate existing contracts where 
possible to accommodate different architectures 
and lower the capital cost of the network and 
hence, the end cost to consumers," Mr Turnbull said.

He told IT Pro "a range of architectures" would 
include fibre-to-the-premises for homes and 
businesses in greenfield areas; fibre-to-the-node 
where possible and HFC. HFC, or hybrid fibre 
coaxial, is used for networks that employ both 
fibre optic and copper cables, usually to deliver 
cable television. Fibre optics are used for the 
backbone up to nodes, then copper cables from the nodes to the premises.

Telstra's existing copper network is to be 
decommissioned as part of the NBN rollout, 
although 
<http://www.smh.com.au/it-pro/government-it/telstra-still-deciding-fate-of-copper-post-nbn-rollout-20120508-1ya5s.html?rand=1340947063923>the 
company has not yet revealed what it will do with the actual cables.

Mr Budde said it was "useless" for Mr Turnbull to 
talk about fibre-to-the-node and copper without a 
policy that stated why the Opposition thinks 
Australia needs the network, including its economic benefit.

"The objective has to come first, then leave it 
to the experts to say how they are going to do it."

Mr Budde said the idea of utilising existing 
technologies like HFC was valid, but in reality 
the cable television network was rolled out a 
decade ago and has not been upgraded, meaning its future relevance is limited.

"Optus and Telstra did not see that potential 
going forward; the utilities don't believe copper 
HFC has a life beyond about eight years and 
investors are not prepared to invest in that technology.

"Why would you do it? And what are you going to 
do at the end of that time. In the US the cable 
network has been upgraded since the day it was 
built. More than 50 per cent of the population is 
connected to it. It's a different scenario."

Mr Turnbull said the Coalition would take "an 
agnostic approach to which technology is used" 
and would ensure that "poorly served areas are 
prioritised, upgrades can be delivered on 
schedule and won't result in a doubling of 
consumer bills over the next decade".

Mr Budde said the Coalition must stop scare-mongering in relation to costs.

"We have now 40 ISPs with NBN products on the 
market for as low as $25 a month. How are 
consumers worst off? The average is more like $29 
for a basic NBN [connected] product. That is very 
comparable with ADSL packages that are around now."

Mr Budde said while the Opposition now appeared 
accepting of the NBN, it must guarantee it will 
not further delay its implementation. The Joint 
Standing Committee's 
<http://www.aph.gov.au/Parliamentary_Business/Committees/House_of_Representatives_Committees?url=jcnbn/./report3.htm>third 
report on the NBN released this week said the 
rollout had already been delayed and 
<http://news.smh.com.au/breaking-news-national/nbn-must-release-more-details-on-rollout-20120625-20ydl.html?rand=1340931557180>criticised 
NBN Co for not providing a benchmark by which it 
could be accurately measured at each review stage.

"Over the next 10 years, NBN will deliver $50 
billion to the economy. We can look at a $10 
billion economic loss if we have a delay of two to three years," Budde said.
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This story was found at: 
http://www.theage.com.au/it-pro/government-it/we-will-not-cancel-the-nbn-turnbull-20120629-217f3.html 

Melbourne, Victoria, Australia
jwhit at janwhitaker.com
blog: http://janwhitaker.com/jansblog/
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Our truest response to the irrationality of the 
world is to paint or sing or write, for only in such response do we find truth.
~Madeline L'Engle, writer

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