broadband

Australia’s new National Broadband Network is the country’s biggest infrastructure project in years, and there’s (up to) $4.7 billion in government subsidies up for grabs. But our largest telco Telstra says it won’t tender if it faces “functional separation” into wholesale and retail divisions. Diddums.

Geoff Booth, managing director of Telstra Country Wide says:

We cannot submit a tender, we will not submit a tender… people think we’re playing a bluff here, but I spoke to the chairman yesterday, and the CEO this morning, and the message is clear: we will not bid if separation is not taken off the table.

Well, Telstra, don’t bid then! [shrugs] Honestly, no-one cares.

What’s the “bluff”, Telstra? That the government will just choose another entity to give the funding to? One which doesn’t piss away their time and energy with all this bitching and moaning? One which doesn’t have the overhead of a bloated, inefficient workforce working within bloated, inefficient silo structures?

Ooooh… I’m so scared!

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One of the Rudd government’s election promises was a national fibre-to-the-node (FttN) broadband network, putting at least 12Mb/sec download speeds within reach of 98% of the Australian population. Tuesday night’s Federal Budget kept that promise. I think.

Here’s how I wrote about it for Crikey yesterday:

Of $4.7b promised for the National Broadband Network, only 0.16% has been committed: $2.1m this financial year and $5.2m next for “establishment and implementation”. The remaining 99.84% — you know, actually building the thing — is all “nfp”. Not for publication. We’ll get back to you.

Spending is now “up to” the pre-election $4.7b figure. Broadband is competing with run-down roads, railways and ports for a share of the $20b Building Australia Fund, where “disbursements… will be subject to budget consideration, and will be spent responsibly, in line with prevailing macroeconomic conditions.”

Whatever the final budget, Australia will still be rolling out a 12Mb/sec network in 2012. Other countries are rolling out 100Mb/sec networks now.

It really is building yesterday’s network, isn’t it.

For various reasons I didn’t have much time to write submissions yesterday. Yet I’ve said so much about still believing the Australia 2020 Summit to be important — despite plentiful shortcomings — that I felt obliged to write something. In 500 words or less. So I wrote from the heart…

What emerged were two pieces:

1. For the governance topic: Managing continual, rapid change with a clear framework of values.
2. For the topic on “the economy”, which is where discussions of broadband policy ended up: Broadband: It’s about symmetry, not speed.

I’m well aware that they don’t really provide a properly-researched, well-argued case. Nevertheless I hope that in some way they’ll help influence debate. Comments appreciated — perhaps over where the submissions themselves are blogged.