Telstra to benefit from Abbott’s policy

Posted: August 11, 2010 in NBN, Uncategorized

Some points overlooked (NBN discussions):

  • Under the liberal proposal (?), Telstra will maintain the monopoly it currently holds on the last mile (#1)
  • Every other developed nation has a fibre to the household policy
  • We can’t rely on a 120 year old network(#2) to deliver 21st century applications
  • Rudd described the NBN as the Railroad of the 21st century – he is right
  • Telstra shareholders will not benefit from the NBN – if in one hand the NBN will enhance Telstra’s profitability, on the other hand, the macro-economic damage will remove $100’s from taxpayers pockets (in inefficiencies that everybody will pay for!)

(#1) The last mile is the generic term used to describe the cabling infra-structure between the node on the network and the final premise.  The last mile is where most of the cost of the telecommunication industry is.

(#2) The copper network is being updated all the time, but the reality is that the technology for transmitting information over copper wire was created with the Telegraph.  An I am sorry to say, Wireless can’t handle high speed, as any Wireless user will tell you!

Some other Telstra trivia for you (I am not 100% sure of dates, but the facts were given to me by reliable sources from the telecommunications industry):

  • Some 15-20 years ago, NEC ran a trial of ADSL in Australia, with the view to establish their equipment in the Telstra/Telecom backbone.  The deployment (after the trial) never went ahead after the trial, as according to Telstra at the time ‘nobody needs broadband’
  • At about the same time, Telstra was trying to flog ISDN as an alternative to ADSL.
  • The obvious suspicion is that Telstra held back on ADSL deployments so it could continue to charge exorbitant amounts for the ISDN service.

ISDN = 64 Kpbs, ADSL = 1.5 Mbs (the entry level ADSL service is 20 times faster than ISDN)

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