Thursday, November 19, 2009

Telstra's NBN speed hump

One of the most common questionings of the proposed National Broadband Network is: "What if they build it and no-one comes?" Well, we may be about to find out even before the NBN is built.
Telstra’s announcement that it will switch on its upgraded hybrid fibre coaxial cable network in Melbourne from December 1 will provide something of a preview of the early years of the NBN.
The network upgrade was announced in the dying days of the Donald McGauchie/Sol Trujillo regime and in the lead up to the announcement of the outcome of the original NBN tender process – the one that didn’t produce a conforming or acceptable tender and led to the brilliant political strategy of, not announcing a failure, but the glittering new fibre-to-the premises network at a cost to taxpayers of up to $43 billion.
McGauchie and Trujillo didn’t know what was coming towards them. They thought the government was within weeks of announcing that a consortium, not including Telstra, would build a fibre-to-the-node network, cutting across Telstra’s copper lines, at a cost to the taxpayer of $4.7 billion or so.
So they came up with an idea designed to demonstrate Telstra’s ability to threaten the new network, protect its own position in the sector and provide a two-finger salute to the government in the process.

No comments:

Post a Comment