[LINK] NBN and competition

Peter Bowditch peter at ratbags.com
Wed May 30 11:05:29 AEST 2012


The systems were designed for one-way delivery of TV programs, not for the 
Internet, so the attached technology heavily favours download.

When I had my Telstra cable Internet put in the installers turned up with 
a Foxtel box and were quite amazed when I said I didn't need it.

> Just looking up Optus cable speeds...
> 
> Is it true that Optus cable limits upload to 0.5Mb/s ?
> 
> I thought Telstra cable was limited to 2Mb/s ?
> 
> Either way, both are too slow.
> 
> N
> 
> On 30 May 2012 08:35, Richard Chirgwin <rchirgwin at ozemail.com.au>
> wrote:
> 
> > What. utter. drivel.
> >
> > On 30/05/12 12:51 AM, stephen at melbpc.org.au wrote:
> > > ACCC in a twist to banish NBN's rivals
> > >
> > > By Peter Martin, May 30, 2012. www.smh.com.au/business (snip)
> > >
> > >
> > > The Optus high-speed cable internet network is a national asset.
> > >
> > > Comprising 25,000 kilometres of coaxial cable strung across 550,000
> poles
> > > in Sydney, Melbourne and Brisbane, it provided Telstra with its
> first
> > > genuine competition, putting its own wires directly into half a
> million
> > > homes.
> > Except, of course, where the cable is underground. And completely
> > forgetting the fibre component of the network. Starting point: "It's
> > okay for me to be technically ignorant because I'm an economics
> writer."
> > > What Optus has now is an asset that costs relatively little to
> operate
> > > and can deliver peak download speeds of 100 megabits per second -
> far
> > > faster anything on Telstra's copper wires.
> > Not, however, either faster nor as extensive as Telstra's HFC
> network.
> > Dill.
> > > Right now it has 496,000 customers. It is within connecting distance
> of
> > > another one million, meaning that for very little cost, Optus or a
> buyer
> > > of the network could provide a very fast, very cheap internet service
> to
> > > as many as 1.4 million households - a service far faster than ADSL.
> > In other words, more people have ignored the network than have
> connected
> > to it. And Optus broadband services are not "very cheap". They're at
> the
> > top end of the price range, last time I checked. And Optus likes the
> HFC
> > network so much that it hasn't rolled out any new cable in ten years.
> > And...
> > > NBN Co has asked the Australian Competition and Consumer Commission
> to
> > > let it pay Optus $800 million to *shut the network down.*
> > >
> > > Only a seriously confused regulator would allow it to happen.
> > >
> > > The only precedent for the destruction of infrastructure on such a
> > > massive scale is the $4 billion NBN Co is to pay Telstra to rip out
> its
> > > copper network, transfer its customers to the national broadband
> network
> > > and remove the internet from the cables it uses to deliver Foxtel.
> > Well, the other precedent is that Telstra's HFC network is also due
> for
> > the same fate. But hey, he's an economist ...
> > > In no other industry would the ACCC approve such an agreement not
> to
> > > compete. In no other industry would it permit a bribe to
> decommission
> > > working infrastructure.
> >
> > >
> > > This week it published a draft decision approving the Optus deal.
> > >
> > > In terms of national assets, the Optus decision is arguably worse
> than
> > > the Telstra decision.
> > >
> > > Telstra will decommission its copper phone lines street by street as
> the
> > > national broadband network cables are switched on. While there will
> be a
> > > loss of competition, copper probably isn't able to compete with
> fibre
> > > over the long term.
> > Wrong again. Not "street by street". A fibre serving area will be
> > completed; 18 months later, the copper will be decommissioned.
> > >
> > > By contrast, the Telstra and Optus coaxial cables are as good as
> new.
> > >
> > > They were strung up in the last half of the 1990s. They are already
> fast
> > > and capable of being made faster. They cost almost nothing to
> maintain.
> > >
> > > They are something that should not be destroyed wantonly.
> > >
> > > The Telstra coaxial cables won't be. It has only agreed to disconnect
> the
> > > internet from them. It could put it back as soon as changed legal
> or
> > > political circumstances allowed.
> > Just wrong. Telstra has agreed to connect all customer services to
> the
> > NBN wholesale infrastructure (including telephony) and decommission
> the
> > copper. It will deteriorate very quickly without expensive
> maintenance.
> > > The Optus coaxial cables are scheduled for destruction. The ACCC's
> > > decision will have physical consequences. It should not be taken
> lightly.
> > "Physical consequences"????
> > > And yet the ACCC gives every indication its decision could have
> gone
> > > either way. It was "finely balanced", according to the chairman,
> Rod
> > > Sims, in Monday's statement.
> > >
> > > Its decision to approve the agreement was based on weighing
> > > carefully "clear public benefits" against "a potentially large but
> less
> > > clear detriment".
> > >
> > > The main "clear benefit" is odd.
> > >
> > > The commission says the agreement will "avoid the cost of operating
> the
> > > Optus network to provide a service the NBN is also able to
> provide".
> > >
> > > Would we apply it elsewhere? Should Virgin shut down its airline
> network
> > > to avoid the cost of operating a service Qantas is also able to
> provide?
> > > Should Woolworths shut down its network to avoid the cost of
> operating a
> > > service Coles is also able to provide? Of course they shouldn't. We
> > > normally value competition.
> > Competition will still exist, but the structure of the
> > telecommunications industry is a bit difficult for Peter Martin to
> > grasp. <sigh>
> > >
> > > Some will argue that wiring up houses is different. Frontier
> Economics,
> > > the consultant used by Optus in its submission to the ACCC, says
> fixed
> > > broadband services are a natural monopoly - they shouldn't be
> provided
> > > twice.
> > >
> > > But the Optus cable network is already in place. It costs next to
> nothing
> > > to keep it in place. It is NBN Co which is planning to duplicate
> it.
> > > Given its plans and the rate at which it is duplicating
> infrastructure
> > > right now, its complaint against "inefficient infrastructure
> duplication"
> > > is simply strange.
> > >
> > > In truth, it's competition that worries NBN Co, not inefficiency. It
> is
> > > paying $800 million to remove a competitor, not out of a public
> concern
> > > about inefficiency.
> > >
> > > With its last big fixed line competitor out of the way, the only
> market
> > > restraint on its prices and quality of service will be wireless
> internet,
> > > and it's on to that as well.
> > ??? What the hell is he trying to say about "wireless Internet" ???
> >
> > RC
> > >
> > > The Optus agreement, given a preliminary tick by the ACCC, prevents
> Optus
> > > from advertising wireless data services within the area served by
> its
> > > existing cables in a way which is "expressly critical of or makes
> any
> > > express adverse statement about the performance or functionality of
> the
> > > NBN where such a statement is misleading or deceptive or involves
> the
> > > making of a false or misleading representation in contravention of
> the
> > > Australian consumer law".
> > >
> > > The ACCC waved it through because it is essentially meaningless,
> > > requiring Optus to do no more than obey the law. But it indicates
> how
> > > deeply concerned NBN Co is at the prospect of competition, or as it
> puts
> > > it "cherry picking". Competition would force it to provide value, and
> its
> > > national pricing structure would force it to provide it to all
> > > Australians. Its $36 billion cost base won't allow it. That's why
> it
> > > needs to destroy perfectly good working infrastructure. It's why I
> think
> > > the ACCC needs to think again.
> > >
> > >
> > > Read more:
> http://www.smh.com.au/business/accc-in-a-twist-to-banish-
> > > networks-rivals-20120529-1zhen.html#ixzz1wGky5g7n
> > >
> > > Message sent using MelbPC WebMail Server
> > >
> > >
> > >
> > > _______________________________________________
> > > Link mailing list
> > > Link at mailman.anu.edu.au
> > > http://mailman.anu.edu.au/mailman/listinfo/link
> > >
> >
> >
> > _______________________________________________
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> >
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> 


-- 
Peter Bowditch
The Millenium Project - http://www.ratbags.com/rsoles
I'm @RatbagsDotCom on Twitter






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