http://www.smh.com.au/technology/technology-news/nbn-good-for-most-not-opposition-20100507-uih6.html
NBN good for most, not Opposition
LIA TIMSON
May 7, 2010 - 1:57PM
Stephen Conroy. Photo: Michele Mossop
The National Broadband Network implementation study has been welcomed by ISPs and industry experts but for the Opposition it is still a “risky adventure with taxpayers’ money”, and should not be built.
The Rudd Government released a $25million report into the NBN’s implementation yesterday. Undertaken by McKinsey and KPMG, the report rubber-stamped the government's plan for the fibre network and its parent company, the NBN Co.
It recommended it be implemented as a public utility instead of a commercial concern. This would see it stay in public hands for 15 years then be sold for an estimated $40billion, recovering the initial investment and bringing a modest return.
This would mean consumers in 93 per cent of the country could have access to a combined voice and internet service of 20 Mbps for about $50-$60 a month, if wholesale prices stay as recommended at $30 to $35.
Top speeds would reach 100 Mbps in some areas bringing a number of benefits to e-health, education and commerce. The remaining six per cent of the population, in remote areas, would have wireless and satellite links at speeds better than currently available.
The reaction from the ISPs was positive. An Optus spokeswoman said the telco agreed with the recommendations in the study.
“We feel it’s a great step for competition,” she said.
However, she expects the new network will not deliver many savings for consumers compared with what they pay today.
“Today the average revenue per user is $110 for the combined line rental ($25), voice calls ($35) and internet ($50). Based on that and on the estimated wholesale price, we expect people to be paying roughly the same."
No agreement has yet been reached with Telstra on whether its existing telecommunications infrastructure would be incorporated into the NBN. The report said it could be built with or without the company. It said it should cost $26 million, not $43 million as previously earmarked by the government.
A Telstra spokesman said the telco was interested in the study’s findings and would consider them in detail.
John Stanton, chief executive of the Communications Alliance, said the study contained some surprises.
“There is a recommendation around bodies corporate. They have said in the case of apartment blocks, where it is difficult to get fibre to every apartment, there will be a change of law to compel bodies corporate to facilitate fibre to individual apartments. The question will be: who bears the cost of that?”, Stanton said.
Emilie Ditton, telecommunication analyst at Telyste, said the report addressed important questions relating to the NBN deployment including logistical challenges, market changes and regulatory considerations. But it didn’t outline how it would help the economy.
Philip Cronin, managing director, Intel, said it was important to see the NBN as "ubiquitous, affordable high-speed broadband for all Australians".
“The opportunity for the Australian ICT sector, particularly for small and medium sized businesses, is immense," Cronin said.
In a statement released last night, the Shadow Minister for Broadband, Communications and the Digital Economy Tony Smith said the NBN plan was still “irresponsible and reckless”.
“We have said repeatedly that we believe the NBN is reckless in the way it was conceived and launched, and reckless in its reliance on the taxpayer.
“The Federal Coalition would never have gone down this path,” Smith said.
The Opposition's stance hasn’t changed in light of the report’s release. Last week, it was revealed Opposition Leader Tony Abbott was toying with dumping the network.
A coalition government would cut spending by $10 billion during its first term if elected to office to reduce national debt, with the NBN potentially one of the first programs to go.
At the time, Communications Minister Stephen Conroy said Mr Abbott risked Australia's economic future.
With Louisa Hearn
NBN good for most, not Opposition
LIA TIMSON
May 7, 2010 - 1:57PM
Stephen Conroy. Photo: Michele Mossop
The National Broadband Network implementation study has been welcomed by ISPs and industry experts but for the Opposition it is still a “risky adventure with taxpayers’ money”, and should not be built.
The Rudd Government released a $25million report into the NBN’s implementation yesterday. Undertaken by McKinsey and KPMG, the report rubber-stamped the government's plan for the fibre network and its parent company, the NBN Co.
It recommended it be implemented as a public utility instead of a commercial concern. This would see it stay in public hands for 15 years then be sold for an estimated $40billion, recovering the initial investment and bringing a modest return.
This would mean consumers in 93 per cent of the country could have access to a combined voice and internet service of 20 Mbps for about $50-$60 a month, if wholesale prices stay as recommended at $30 to $35.
Top speeds would reach 100 Mbps in some areas bringing a number of benefits to e-health, education and commerce. The remaining six per cent of the population, in remote areas, would have wireless and satellite links at speeds better than currently available.
The reaction from the ISPs was positive. An Optus spokeswoman said the telco agreed with the recommendations in the study.
“We feel it’s a great step for competition,” she said.
However, she expects the new network will not deliver many savings for consumers compared with what they pay today.
“Today the average revenue per user is $110 for the combined line rental ($25), voice calls ($35) and internet ($50). Based on that and on the estimated wholesale price, we expect people to be paying roughly the same."
No agreement has yet been reached with Telstra on whether its existing telecommunications infrastructure would be incorporated into the NBN. The report said it could be built with or without the company. It said it should cost $26 million, not $43 million as previously earmarked by the government.
A Telstra spokesman said the telco was interested in the study’s findings and would consider them in detail.
John Stanton, chief executive of the Communications Alliance, said the study contained some surprises.
“There is a recommendation around bodies corporate. They have said in the case of apartment blocks, where it is difficult to get fibre to every apartment, there will be a change of law to compel bodies corporate to facilitate fibre to individual apartments. The question will be: who bears the cost of that?”, Stanton said.
Emilie Ditton, telecommunication analyst at Telyste, said the report addressed important questions relating to the NBN deployment including logistical challenges, market changes and regulatory considerations. But it didn’t outline how it would help the economy.
Philip Cronin, managing director, Intel, said it was important to see the NBN as "ubiquitous, affordable high-speed broadband for all Australians".
“The opportunity for the Australian ICT sector, particularly for small and medium sized businesses, is immense," Cronin said.
In a statement released last night, the Shadow Minister for Broadband, Communications and the Digital Economy Tony Smith said the NBN plan was still “irresponsible and reckless”.
“We have said repeatedly that we believe the NBN is reckless in the way it was conceived and launched, and reckless in its reliance on the taxpayer.
“The Federal Coalition would never have gone down this path,” Smith said.
The Opposition's stance hasn’t changed in light of the report’s release. Last week, it was revealed Opposition Leader Tony Abbott was toying with dumping the network.
A coalition government would cut spending by $10 billion during its first term if elected to office to reduce national debt, with the NBN potentially one of the first programs to go.
At the time, Communications Minister Stephen Conroy said Mr Abbott risked Australia's economic future.
With Louisa Hearn
