Download speeds for wholesale customers on Telstra’s 3G services will range up to a maximum 3Mbps, while those on Telstra’s own Next G mobile network can achieve download speeds of anywhere up to 20Mbps. So there’s the catch. The vast difference in speeds is possibly due to the fact that Telstra need to be careful that they don’t cannibalise their own product.

The likes of Optus and Vodafone have also provided similar wholesale services to Telco’s such as Dodo, Virgin, iiNet and Internode for some time now, so this move by Telstra may not only seen as a potential tactic to counteract competition and bolster sales, moreover one that also aligns with Telstra’s transition to offering superior 4G services.

Read more at theaustralian.com.au – Telcos to resell Telstra 3G services

It’s believed that Telstra will pledge not to mislead or deceive consumers in anyway that their wireless broadband services will be an effective substitute for the National Broadband Network and attempt to migrate their customers across to their own Telstra Next G wireless Network.

“We were very concerned about that because we believe there should be no prohibition on Wireless competition to the NBN.”
- ACCC chairman Rod Sims

Read more at theaustralian.com.au: NBN loses Telstra wireless battle

Telstra has spent upwards of a $1 billion just over the past year alone in order to ‘win back’ customers through improving customer service and facilitating management structures to reduce complexity throughout its bureaucratic system as the Telco positions itself for a NBN future.

With a chequered past in relation to previous transformation attempts that were lead by Mr Thodey’s predecessors Sol Trujillo and Ziggy Switkowski, Telstra will need to work hard to deliver a successful outcome. However if there’s one super positive strategy they have up their sleeve, it’s got to be the $11 billion windfall from the NBN Co and government deal which the respective parties would not like to see fail.

“We still have lots of market share to win and we need to be organised better to do that. But we have said we will improve services, drive out costs and grow market share. And we are doing that. We are delivering,” Ballantyne says.

“The strategy that David (Thodey) has put in place is all about moving from a business unit focus to a functional structure.

“We have now moved to a world where we have single accountability for service, we have single accountability for products and services and innovation, single accountability for operations and our media strategy and our international strategy.”

Read more at the australian.com.au – Telstra chief overhauls Telstra for NBN game

It could be some years away yet until Telstra cable broadband services are decommissioned in favour of the new high speed national broadband network, so it makes sense for the Telco to upgrade services in Sydney, Brisbane, Perth, Adelaide and the Gold Coast to the DOCSIS 3.0 HFC cable broadband standard.

The upgrade will boost present download ‘peak’ speeds from 30Mbps to 100Mbps although the DOCSIS 3.0 technology has the theoretical ability to produce downloads speeds of up to 160Mbps.

Learn more about the upgrade at itnews.com.au – DOCSIS 3.0 to expand beyond Melbourne

Mr O’Sullivan indicated that there should be full transparency on what Telstra spends the money on in order to contribute to a level playing field and so that the incumbent cannot further monopolise the Telco industry.

“We’d like a level playing field so we can play a competitive game.”

“We think there should be full transparency. Where the money is spent should be accounted for,”- Optus CEO Paul O’Sullivan

Read more at the heraldsun.com.au – Optus wants conditions put on Telstra’s $11b NBN windfall

With regulatory uncertainty clouding the Telco for the past couple of years, Telstra’s board members would be quietly celebrating the outcome of the shareholder vote as it almost instantaneously provides stability and also places the Telco $4.7 billion greater than under the best available alternative.

All that stands in the way of a fully fledged NBN now are the concerns raised by the ACCC in relation to Telstra’s structural separation undertaking (SSU) that were submitted to the competition watchdog some time ago for approval.

It’s expected that Telstra will address and rectify these issues promptly as failure to do this by 31st December 2011 would activate a compulsory functional separation which would leave the ACCC and Communications Minister, Senator Stephen with greater control of how the Telstra’s retail and wholesale businesses would be separated.

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Telstra have advised the ASX that they do not expect the ACCC to approve their plans to structurally separate the company and transfer 10 million fixed line customers on to the NBN Co’s new fibre network before their upcoming shareholders vote.

The two biggest hurdles that Telstra need to clear before it can reap the $11 billion deal with the NBN Co are still up in the air although the Telco remains confident that they will eventually get there.

The first issue was to have the structural separation plans approved by the ACCC prior to the shareholder vote on October 18. This has yet to be resolved, however Telstra have declared they will still proceed with the second hurdle, which is to take their separation proposal to the shareholders at the upcoming annual meeting.

“We do not expect ACCC approval will be received before the AGM,” Telstra told the ASX.

Updated by Ronnie on October 3, 2011

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Despite all the recent media speculation stating that the ACCC was deeply concerned with Telstra’s structural separation submission and that it may set back the National Broadband Network roll out, Telstra CEO David Thodey has come out and quashed all reports by stating that the Telco is still on track to reach a deal with the competition watchdog very soon.

“It’s no change to what we’ve said before,” he said. “We’ve got some work to do and we’re working productively with (the ACCC).”

Mr Thodey said that he expects approval from Australian Competition & Consumer Commission to be reached in time before the Telxo brings it’s retail and wholesale structural separation plans to a shareholder vote on October 18, 2011.

Updated by Ronnie on September 9, 2011

——————————————————————————————-

Telstra CEO David Thodey admitted that he wasn’t surprised with the ACCC’s warning about the Telco’s structural separation plans. This statement comes as a direct result from the recent concerns aired by the ACCC in relation to Telstra’s wireless services competing against the NBN Co’s upcoming national broadband network.

According to an article at Computerworld, Mr Thodey stated that… “The ACCC has raised a number of concerns but they do not really come as a surprise to us at all,” and… “We to believe the issues can be resolved in away consistent with our principle of protecting shareholder value and the company will continue to work closely with the ACCC to address the concerns with a view to obtaining acceptance to the structural separation undertaking and draft migration plan before the AGM on 18 October 2011.”

Telstra and the ACCC have been in regular consultation over the structural separation of the Telecommunication provider. So I suspect that the emergence of these recent events will not in any way hinder the separation process nor the upcoming shareholder vote.

Updated Friday 02/09/2011

——————————————————————————————

A fundamental component for the Government’s vision of a National Broadband Network to become a reality is the structural separation of Telstra. This has now hit a major hurdle with the ACCC flagging concerns over Telstra’s plans to restructure the company.

It was expected that Telstra’s submission to the ACCC would pave the way to an $11 billion deal with the NBN Co to share it’s vital infrastructure. However a green light from the competition regulator has not been granted as they are concerned with the Telco’s pre-conditional promise of ‘not competing’ with the NBN through its wireless services offerings.

This concern could be a major setback for the NBN’s development schedule and Telstra’s structural separation plans unless immediate action is taken by the Telco to make important changes to their proposal. Although this latest issue should not halt NBN proceedings entirely, it still managed to unsettle investors as Telstra shares took a dive after the announcement was made.

Opposition communication spokesman Malcolm Turnbull didn’t waste any time to attack the integrity of the Government by stating the comments showed the Government was putting its political interests ahead of the national interest. While the Minister of Communication Stephen Conroy said this issue was a matter for the ACCC and he looked forward to the final determination.

Almost coinciding with the NBN target date of completion, in which most Australian premises will have been migrated away from Telstra’s copper PSTN to the national broadband network, Telstra is expected to commit to the completion of the restructure by 1st July 2018.

Read more about Telstra lodging separation document with the ACCC at iTWire.com

The finer details are expected to be set in stone sometime this week following last years’ non-binding heads of agreement where the pair agreed to fundamental principles involving an $11 billion dollar transfer of Telstra’s copper PSTN network along with the migration of their customers to the NBN.

It’s been suggested that the deal is being fast tacked prior to the release of Telstra’s half yearly results announcement later this week.

Source: smh.com.au – Telstra rushes to seal NBN Co deal before half-year results

It’s expected that the business case will display how the NBN will cost taxpayers less than initially expected, and that a $5.5 billion saving would be obtained by the inclusion of Telstra. The Government will now hope they can secure the vital votes from independant sentors Steve Fielding as well as Nick Xenophon.

Read more at News.com.au: Government to release business case for national broadband network after pressure from Xenophon

Bringing the tally of NBN Providers in Tasmania to 5, Telstra consider the respective state to be the perfect test bed for experimenting with various types of services and plans over the NBN which should give them a great insight into offering services on the mainland once the NBN becomes established there. Optus is yet to decide whether they will offer fibre to the home broadband services in Tasmania, however I would suspect that they will feel obliged to now that Telstra has raised their hand.

With iiNet, Primus, Internode, Exetel, Telstra and potentially Optus joining the race down under on the Tasmanian NBN, it certainly sets the scene for a interesting mini telecommunication battleground. With the NBN now looking certain to take shape nationwide, the Tasmanian first release sites of Midway Point, Smithton and Scottsdale are sure to be in for a treat of technology, innovation, competitive telcommunication prices and of course very fast broadband.

Search and compare Telstra Home Bundles via BigPond right here! 

Telstra, who has a $9 billion non-binding agreement with the Government that involves the sale of their copper PSTN network, will encourage their shareholders to agree to the deal which is expected to be approved early next year.

Although the construction progress has been delayed by the elongated election outcome, the NBN Co is still on track to name the final list of construction contractors by the end of the year. The progress news was further strengthened by Stephen Conroy recent statement on the ABC radio that the Tasmanian rollout of the NBN has thus far come in under budget and ahead of schedule.

The surprising submission came as the Senator responded to mounting public and political pressure to release a 500 page business case study on the proposed network. The paper is perhaps the most vital factor for Mr Conroy in regards to passing  the required legislation through parliament.

As yet, the Australian Government and Telstra have been unable to resolve negotiations as to how Telstra can take up a significant role within the construction and operation of the Australian National Broadband Network. Many Industry analysts suggest that the Government cannot build the NBN without the substantial assistance of Telstra, however Conroy remains adamant that these false reports will be ‘put to bed’ once the lead advisers implementation report is released.

“No question, and I’ve said this many many times, that it would be faster to build and cheaper to build if there is an agreement with Telstra. (But) I think when you see the business case in the lead advisers’ report (in the study) a lot of the commentary which has been wildly inaccurate and I mean wildly inaccurate will be put to bed.”

Speculation has been circulating suggesting that Senator Conroy has given Telstra just one month to close a significant gap that’s held up talks thus far… so for now we wait.

I thought it best to update this post as prices and products can change quite quickly. Good news is that most of these offers are still available and that means you can still save heaps by bundling your products with a Telstra Home bundle.

Bundle your Phone, Broadband and Pay TV services with Telstra easily and quickly and start saving on your broadband bills today! Simply visit the following link to browse Telstra Home Broadband Bundles.


End Update

———————————————————–
Save up to $81.85 per month when bundling your Pay TV, Home Phone and Broadband services by signing up to a new Telstra Home TV Ultimate Bundle – 25GB. Telstra’s new Home Bundles are essentially a double play and triple play value packs that provide Home Phone, Broadband services, or Home Phone, Broadband and Pay TV services all combined into one package.

By bundling all your Telecommunication services together, Telstra gives you a discount. I guess it’s like fundamentally rewarding the consumer with discounts for bringing all your services to them. Savings are based on either a Telstra’s HomeLine plan and 12 month Broadband pricing, or where applicable an additional FOXTEL from Telstra Platinum iQ Pay TV package as well.

There are five different levels that you can subscribe to a Telstra Home Bundle on Youcompare depending on your requirements (see the options below). The Bundles are extremely good value for the likes of families and couples who use the respective services frequently.

Compare Telstra Home Bundles right here at Youcompare, or call a friendly Telstra Home Bundle representative on 1800 830 010 now!

Telstra Home TV Ultimate Bundle 25GB  - Cost $218 per month (Save up to $81.85 per month)

• Broadband - Includes BigPond 25GB ADSL or Cable Elite (no excess usage charges). Home Network Gateway included.
• Home Phone - Includes HomeLine Ultimate, Line Rental and Unlimited Local and STD calls (plus good rates to Mobiles & International numbers)
• Pay TV -Includes FOXTEL from Telstra Platinum package and  an iQ set-top-box

Telstra Home TV Bundle 25GB  - Cost $198 per month (Save up to $61.85 per month)

• Broadband -Includes BigPond 25GB ADSL or Cable Elite (no excess usage charges). Home Network Gateway included.
• Home Phone - Includes HomeLine Reach, Line Rental and Unlimited Local calls (plus good call rates to Mobile Phones & International phones numbers)
• Pay TV -Includes FOXTEL package from Telstra Platinum package and  an iQ set-top-box

Telstra Home Ultimate Bundle 12GB  - Cost $118 per month (Save up to $41.85 per month)

• Broadband - Includes BigPond 12 GB ADSL or Cable Elite (no excess usage charges). Home Network Gateway included.
• Home Phone - Includes HomeLine Ultimate, Line Rental and Unlimited Local and STD calls (plus good call rates to Mobiles & International numbers)

Telstra Home Bundle 12GB – Cost $98 per month (Save up to $21.85 per month)

• Broadband - Includes BigPond 12 GB ADSL or Cable Elite (no excess usage charges). Home Network Gateway included.
• Home Phone - Includes HomeLine Reach, Line Rental and Unlimited Local calls (plus good call rates to Mobiles & International numbers)

Telstra Home Bundle 12GB – Cost $78 per month (Save up to $21.85 per month)

• Broadband - Includes BigPond 2 GB ADSL or Cable Elite. Home Network Gateway included.
• Home Phone-  Includes HomeLine Reach, Line Rental and Unlimited Local calls (plus good call rates to Mobiles & International numbers)

The parties are nevertheless discussing commercial wholesale arrangements for NBN Co’s use of Telstra’s passive infrastructure, including ducts and exchange space, and backhaul.

Welcoming the announcement Senator Conroy issued a release noting that; “While there are many complex issues still to be resolved before any final agreement is reached, I remain optimistic that both parties can find a mutually acceptable outcome.”

via iTWire .

“Unfortunately the ETS has been Telstra’s get out of jail card,” Mr Krishnapillai told ABC Television tonight.

“We have a real fear that Telstra will simply cut a sweetheart deal with the government over the next two months.”

via News.com.au.

“The BigPond-branded landing page provides BigPond customers with organic search results, sponsored links, display advertisements and intelligent recommendations, all derived from the invalid domain input – much more helpful and friendly than a nasty 404 page error.”

An Optus spokesman said customers were increasingly viewing broadband as another channel for entertainment.

The company recently announced a home entertainment-based deal with Sony in which customers are offered unlimited broadband bundled with an internet-enabled 120Gb PS3 games console and wireless keyboard.

Sony plans to introduce its own movies-on-demand service next year for PS3 users.

via Herald Sun.

Split into Retail and Wholesale divisions and we’ll give you the option to buy 49% of the NBN. Maybe not quite that easy, however it’s been stated that Communications Minister Stephen Conroy and the Federal Government will offer Telstra the option to buy a 49% stake in the National Broadband Network if they structurally separate, or should I say functionally separate.

Dangling a lucrative NBN carrot such as the opportunity to own 49 percent of Australia’s next big thing since the Snowy Hydro Hydro Electricity Project will give incoming Telstra CEO David Thodey and the Telstra Board something to think about. It’s not just separation that they will need to consider, moreover this could very well mean that Telstra may have to hand over its existing fibre network among other goodies.

In other related NBN news, it appears that AUSTAR is also vying for a piece of the action. The regional Pay TV Provider has indicated that they have already held informal talks with the Federal Government regarding their wireless communication spectrum and how it could become a vital instrument for the National Broadband Network program.

AUSTAR currently holds a 2.3Ghz and 3.5Ghz band radio spectrum licence for regional Australia until 2015 which they purchased back in 2000 for $140 million. A Wireless and WiMax solution for many rural sectors of Australia could play a pivotal role in delivering high speed broadband Internet, voice and high definition TV services to these regions, especially using the soon to be obsolete analogue TV towers that are left behind.

Meanwhile, failed NBN bidding participant, Axia NetMedia, might not be out of the race just yet. In a Request For Proposals debriefing held recently, Axia NetMedia Global Development and Marketing Vice President ‘Mark Blake’ did not strike out his company’s potential inclusion into, at least, some of the NBN’s construction.

Although tight lipped on outcomes of the debriefing, Mr Blake did suggest that citing certain elements of their recent NBN proposal, he remained confident that specific parts could be used in the upcoming $43 Billion NBN. Furthermore, he admitted that the opportunity for participation had now become more possible, opposed to less.

Could it be likely that Axia NetMedia, like AUSTAR and Telstra, play a major role in the upcoming NBN construction process? From the sounds of Mark Blake, you’d be likely to think as much.

Keep informed with all the important news on the upcoming 100Mbps National Broadband Network right here at the Youcompare Blogs.

Sol Trujillo rides off into the Mexican sunset taking with him a suspected $20 million dollar bon voyage payout, while incoming CEO, David Thodey, is left to pick up the pieces and rekindle the severed relationship left behind between Telstra and the Australian Federal Government. The appointment of Thodey has also seen the resignation of Donald McGauchie, which is effective immediately, along with the appointment of Catherine Livingstone who will take on the company’s chair.

David Thodey was a likely internal candidate to succeed Trujillo. For one, he is an Australian who knows the Australian environment, and possibly a key that won Mr Thodey the board’s vote over three other rivals, including a British executive, was his close relationship with many key Government officials. To the contrary of Mr Trujillo, David Thodey has a calm nature and was not closely associated with Mr Trujillo, so this should also give him a great advantage in the political arena.

Trujillo was essentially hated by the Australian Federal Government. He only had himself to blame for being dropped from the Christmas Card mailing list as his hostile approach to the Australian Telecommunication environment and Federal Government made Trujillo highly unpopular. What’s more, in his time at Telstra since 2005, Good ol Sol personally axed 10,000 Telstra Jobs and was not liked by the ACCC, unions, customers or his own employees. His tenure at Telstra also witnessed the nose dive of Telstra shares by more than 25%, so I guess its safe to say that many Australian Mum’s and Dad’s are also on the list.

David Thodey has definitely got a huge work load ahead of him if he’s going too turn the tide. On his list of priorities will be the new National Broadband Network and the looming Structural Separation of Telstra whilst fending off concerns raised by investors. He certainly appears to have the port folio to pull it off and we wish him well.

David Thodey Background Summary
Kellogg Post-Graduate School General Management Program at Northwestern University in Chicago
Bachelor of Arts in Anthropology and English from Victoria University in New Zealand
Pre 2001 – Chief Executive Officer IBM Australia / New Zealand (22 year career)
2001 – Group Managing Director of Telstra Mobile of Telstra Corp
2003 – Group Managing Director of Telstra Business and Government of Telstra Corp

Australia’s biggest Telecommunication provider ‘Telstra’ is contemplating the separation of it’s retail and wholesale divisions along with selling off some of the company’s fibre cable assets to the Australian Federal Government in what appears to be ‘a change of attitude’ from management.

A Telstra separation would come as no surprise although the voluntary action to do so would be an extraordinary decision considering the years of opposition against such a move. One theory behind the speculation surrounding the potential separation of Telstra is that the Telco is aiming to reconcile with the Government in a bid to thwart off far greater penetration into Telstra’s business affairs.

The question is will the break up of Telstra consist of Structural Separation, Operational Separation, Ownership Separation or Function Separation? After all, what are the differences?

Telstra Structural Separation would simply consist of two elements being divided into separate divisions – Retail & Wholesale. This would mean that the retail arm of Telstra would have to purchase and provision services and products from it’s wholesale division.

Structural Separation is essentially ‘Ownership Separation’. This means that the carrier division of Telstra’s network is entirely severed from the retail arm from both a legal perspective and that of ownership (including the parent company). The advantages of structural separation would essentially abolish conflict of interest, alleviate any monopoly stranglehold, improve regulatory legislation and thus improve competition.

Functional separation would entail Telstra to construct fully separated entities, however the ownership of these entities would still remain with Telstra who would then act as a ‘parent company’. This means all business dealings are separate, except to say that the entities would still be legally bound to Telstra.  Functional separation (aka Operational Separation) would involve stringent regulatory requirements of all Telstra’s network operations. Regulatory legislation would be introduced making it mandatory for Telstra to conduct business with all ISP’s on equal terms.

Search and Compare Telstra BigPond Broadband Plans right here at Broadband Guide.

In the biggest broadband news to hit the Internet since Telstra was dumped from the NBN process, the incumbent today announced a Cable Broadband upgrade of 100Mbps which will triple existing speeds. Telstra’s timely media release has coincidently surfaced within days of an expected National Broadband Network decision to be made by the Australian Federal Government.

Work on the Telstra cable upgrade roll out will use the latest DOCSIS 3.0 software technology and has been scheduled to start immediately with completion targeted for December this year. The next level of cable broadband speeds is not expected to finish at 100Mbps either, as further upgrade capacities suggest cable broadband potentials can reach speeds of up to 200Mbps.

Although Telstra may be excluded from the Australian NBN process, the Telco still appears to be rapidly releasing upgrades and new features whilst expanding on their already impressive network coverage. It’s almost as though Telstra was seeking to obtain an early ‘upper hand’ against a prospective NBN rival that is due to be announced any day now.

By the end of this year, and provided that all forecasts go to plan, Telstra will have upgraded it’s 2.5 million subscriber cable broadband network to 100Mbps; possibly increased it’s Next G mobile wireless service from 21Mbps to 42Mbps; consolidated broadband Internet access to 99% of the population; and as a result, enabled the potential for millions of people to work from home, improve home automation capabilities and opened the door to an online world of entertainment that includes high definition content viewing.

Funnily enough, this Telstra blueprint could almost deliver high speed broadband of at least 12Mbps (as defined by the Government’s NBN guidelines) to the majority of the population without needing the NBN funding of $4.7 billion? If Telstra was to provide minimum broadband Internet speeds of 12Mbps on both of it’s existing ‘Next G’ and ‘Hybrid Coaxial Cable Networks’, it would only leave an ADSL2+ upgrade to VDSL2 technology in it’s path of meeting the NBN speed requirement.

VDSL2 (Very High Speed Digital Subscriber Line 2) is a broadband Internet access technology that could supercede ADSL2+ services and can theoretically support speeds of 250Mbit/s at the source. However, beyond this distance the speed quickly deteriorates to 100Mbps at 0.5kms, 50Mbps at 1km, then to ADSL2+ speeds (24Mbps) at 1.6kms.

Telstra has already tested VDSL technology and ‘all bets are off’ that this type of technology will be the next in line for a roll out beyond the upcoming cable and Next G upgrades. If VDSL2 does become reality, then Telstra will basically have all the mechanisms in place to compete against an alternative National Broadband Network structure based on the Government’s pre-requisite minimum speed of 12Mbps.

Telstra Media Release.

If the writing wasn’t already on the wall, the imminent fate of Telstra chief ‘Sol Trujillo’ was definitely made more evident after blundering the NBN bid. It’s been officially revealed that the Telstra CEO will in fact step down on June 30th this year after 4 years with the incumbent.

During his period at Australia’s largest telecommunication provider, Mr Trujillo says the results he’s achieved in this respective time has made him incredibly proud. He certainly has Telstra’s world leading Next G Mobile broadband network to his credit, however others would argue his success was limited, especially Telstra’s shareholders.

There’s no doubting that Mr Trujillo’s almost ruthless approach at dealing with the Industry’s challenges; it’s competitors; Australian Government relations; and regulatory conflicts earned him some stripes if not stars, however history will possibly reveal down the track that the one thing that he didn’t know too well was the environment he worked in and it’s people.

So who’s next in the seat? If the board share similar opinions to those just described, I’d be inclined to lean toward an in-house appointment. Telstra may be twice shy when it comes to obtaining a foreigner for the top roll, and someone that will be subject to an unfamiliar, and at times, hostile environment. My guess Telstra’s next boss is an Aussie!

When it was revealed that Telstra held back the activation of hundreds of ADSL2 DSLAM Exchanges across Australia in 2008, many people where left bewildered. On one hand it was very disappointing to learn that Telstra was basically holding back the access of High Speed Broadband to thousands of Australians and therefore holding back potential economic growth. Then again, Telstra, as per usual, makes business decisions based on the best intentions of their shareholders. Sour grapes or smart business?

Now that the incumbent has been dumped from the National Broadband Network process, it’s forced the Telco to rethink their strategy and it’s through this that another Telstra Broadband revelation has emerged. Sol Trujillo, Telstra’s CEO, told a Citigroup EMT conference recently that Telstra is now capable of rolling out DOCSIS 3.0 technology that could deliver their Cable Broadband customers a staggering 100 Mbps broadband speed. WoW! Not only could they deliver 100Mbps high speed broadband connectivity, but using this technology Telstra could match the Broadband speed of the upcoming NBN. On top of this they could also roll out this 100Mbps network upgrade faster than any competitor could instill their own.

This technology basically means that Telstra could compete with, if not exceed, the speeds in which the new NBN technology is likely to bring. Of course Telstra’s DOCSIS 3.0 technology integration would be limited to major metropolitan areas where Telstra’s existing HFC network already exists, however this is still a very large chunk of Australia’s population. So when can we expect this to happen? Once again, it sounds like Telstra are going to hold back until they are forced to do so by competitive pressure.

 - Sol Trujillo

“Well the [DOCSIS 3.0] technology is now real, the technology is being deployed and we have that also as an option if somebody chooses to compete and to compete with us, the only difference is we’ll be there a lot quicker a lot faster a lot bigger, a lot more integrated and with more capabilities than anybody else.”

Telstra’s public policy and communications representative ‘David Quilty’ has stated that the telco is not considering legal action against the Federal Government after being booted from the NBN tender process.

Speculation has emerged stating that Telstra would seek compensation claims in excess of $80 billion from the Government if another proponent was to win the rights to build a national broadband network which accessed Telstra’s existing copper network.

Senator Conroy has withdrawn from making any hypothetical remark on the possibility of compensation claims by Telstra, although he did point out that Telstra had already brought the access issue before the courts (unsuccessfully). 

“In fact, Telstra decided to take this matter all the way to the High Court,”

“Even (chief justice) Michael Kirby joined the other six members to say that when Telstra purchased the network, they purchased it with an access regime in place. Get used to it,”

Telstra is certainly showing signs of backing down, however Mr Quilty once again stood behind his company’s ongoing broken record excuse that ‘puts their shareholders first’  by saying that Telstra were unable to submit an extensive NBN proposal through fear of vertical separation which is something that Telstra cannot contemplate.

Quilty also played down any possibility that the board, including chief executive ‘Sol Trujillo’, faced uncertain futures following their ballsup with the whole NBN process that witnessed billions wiped from Telstra share prices which infuriated Telstra shareholders.

Telstra will not build the $4.7 billion National Broadband Network! The Government’s expert panel has made extraordinary headlines by making a decision to reject their non-compliant bid based on a technicality. Telstra was dumped from the process on grounds that it did not meet a section of requirements surrounding a ‘small to medium enterprise plan’ which was a mandatory part of the NBN criteria.

In the biggest Broadband news to hit the industry this year, Telstra boss ‘ Sol Trujillo’ may have called his last bluff by submitting a pitiful 12 page NBN proposal to the Australian government. Trujillo was believed to be somewhat bewildered by the decision as he had not yet had any correspondence with Minister Conroy, thus receiving the news secondhand.

“We are a bit surprised at taking this action on a triviality, which we are very clear in our minds, we were fully compliant in the language of the RFP in terms of how we handled this matter. I don’t want to speculate beyond that, because we’ve not had any conversation with the Minister or the appropriate people involved yet,” – Sol Trujillo

Many Australians have been made buoyant by the sobering decision to dump Telstra from the NBN process as they believed the incumbent was too powerful in holding out competition; slowed down innovation and market growth; and charged extremely high prices for telecommunication services.

On the surface, this latest decision by the government is statement of strength and unity which suggests they will not be taken lightly with the national broadband network process, and furthermore, will endeavour to create an ‘open access’ network with ‘fair’ regulatory conditions for Australian consumers along with an equal playing field for Industry competition.

At the same time this decision will also force Telstra to re-evaluate their strategy on the NBN. This may included succumbing to the NBN process guidelines and submitting an eligible comprehensive proposal, if the door is still open that is? Or possibly considering business (on their own) beyond the NBN.

If this latest slap in the face doesn’t awake the arrogant giant, it’s quite likely that Telstra’s shareholders will, or the perhaps the possibility of declining stock value? You’re move Telstra, the ball is well and truly in your court now.

Canadian NBN hopeful ‘Axia NetMedia’ has finally shed some light on their proposal and ability to construct a national broadband network in Australia after months of keeping a low media profile.

In essence, an Axia built broadband network could fundamentally be up to 5 times faster and cost half the price compared to that of current high speed fixed broadband. A $15 broadband access price absolutely blows Telstra’s $85 per month out of the water. It actually makes you wonder how these figures can be so contrary of one another.

Unlike any of the other NBN tender potentials (except Telstra within Australia), Axia NetMedia has extensive experience in rolling out national broadband networks in several countries. Their port folio includes metropolitan and regional projects across France, Canada and now Singapore regions.

Axia NetMedia chief executive and chairman ‘Art Price’ recently stated that who can you justify $20 -$30 for a local copper loop when a prospective ‘Fibre to the premise’ service in a major metropolitan area for $15 per month.

If Axia NetMedia are true to their word, then Telstra have a got a real fight on their hands and perhaps the winning applicant is not a foregone conclusion after all. After considering some of the view points being touted by Mr price, it certainly appears that the Government’s eight person expert panel is going to have their work cut out with recommendations to the federal Government for a $15 billion new Australian national broadband network.

Read more at ‘The Australian’

Broadband Internet speeds of 25-50 megabits per second (Mbps) to 65-75% of households, and 12-20Mbps to the remaining 25-35% that cover 80-90 percent of the population. These are figures that can be achieved by Telstra for a national broadband network VDSL2 Fibre to the Curb ‘upgrade’ (FTTC, also known as Fibre to the Node). After following the progression of the NBN saga closely, it’s an extremely possible scenario that could be well on the money and have a very fast turn-around time to boot. 

VDSL2 research and testing has not only commenced, but has been well underway for quite sometime now by Australia’s largest telecommunications provider ‘Telstra’. The incumbent has been playing their cards very close to their chest and has been unwilling to reveal it’s blueprint for Australia’s new $4.7 billion dollar (or should I say $10 billion?) high speed broadband network. If they were to win, the odds are very short that their preferred choice of broadband delivery method would in fact be VDSL2. This type of telecommunication technology could easily support simultaneous triple play services such as high speed broadband, voip/telephony & digital TV (or IPTV) products at the minimum government required broadband speed of 12Mbps.

Although Telstra submitted a ‘non compliant’ NBN proposal, this is not to say that the telco cannot stitch up a ‘backdoor’ deal with the government that will take advantage of VDSL2 technology for a proposed NBN. You see, it’s no secret that Telstra has been considering VDSL2 as it’s primary architecture for a NBN. There are plenty of facts’, quotes, and articles floating around the Internet to suggest that Telstra are in the box seat when it comes to A – Being the most logical and experienced bidder to take on and build a broadband network of this magnitude; and B – Use VDSL2 technology (Very high speed Digital Subscriber Line) which provides faster speeds over similar distances using copper lines than that of ADSL2+. VDSL2 is essentially an upgrade that will supersede ADSL2+ DSLAMs in telephone exchanges across Australia. Whether DSLAMs will remain for other ISPs to use (if this were to be the case) is another story.

For example, an article appearing on New Zealand based Stuff.co.nz just recently, and of course Telstra’s non compliant 12 page NBN proposal, is reporting that a Telstra constructed national broadband network would use VDSL2 technology and be built by 4000 workers using Alcatel- Lucent materials and equipment. It makes perfect sense that the facilitation in regards to accessing and upgrading exchanges with the required new equipment to be governed by Telstra, after all who else knows an Australian exchange better than Telstra themselves? With this in mind, along with the threat of countless court room litigation cases if Telstra were not to win the NBN, a VDSL2 roll out would be performed much much more faster by Telstra than any other party.

Kevin Rudd, Stephen Conroy, their NBN panel and the Australian Government have an enormous and convoluted task with the whole NBN dilemma as it now stands. Not only do the need to ‘tick off’ pre-election promises, however they also need to consider the possible backlash from Telstra shareholders if Telstra were to lose out on the NBN; endless courtroom litigation waged against the government by Telstra (again, if it were to lose); regulatory guidelines such as operational or structural separation placed upon Telstra (if it were to win) and the consequences of such if adequate competition guidelines aren’t included; implications from the likes of Optus, Terria and other constituents (if they were to lose), but most importantly and above all other implications – whats best for the Australian people and Australia’s future!

One thing is certain though, no matter which way the decision goes…. it’s time for Kev and Steve to stand up and get their hands dirty. Telstra for the win in my opinion.

The network would use VDSL2 technology to provide download speeds of 25-50 megabits per second (Mbps) to 65-75 percent of households it reached and speeds of 12-20Mbps to the remainder. Telstra could start building the network next year, but gave no completion date.

———————————————————————————-

** Updated ** Telstra ‘Booted’ from NBN Process - Tuesday 16th December 2008

As at 15th December 2008, Telstra has been officially ‘rejected’ from the $4.7 billion NBN process by the Australian Federal Government. Sighting a technicality in Telstra’s Broadband Network proposal, Communication’s Minister ‘Senator Conroy’, in a recommendation passed on by the expert panel, stated that Telstra had been rejected on the grounds that it failed to submit a mandatory element of the proposal surrounding a small to medium business plan. 

Sol Trujillo and Telstra appeared to be walking a tight rope right from the NBN inset by submitting a non-compliant bid which entailed a 12 page document only, whilst competing entities were believed to have submitted comprehensive proposals that incorprated 1,000+ detailed pages.

Calling Telstra’s Bluff, the Australian Government has now sent out a loud and clear message by dumping Telstra. This action has essentially displayed a show of strength which indicates the NBN process will not be compromised by parties seeking to hold the Government at ransom.

Telstra’s motives may have been driven by the shareholders best interests, or so they keep saying, however on the flip side it could also be clearly interpreted as an arrogant and somewhat ignorant mistake that has grossly underestimated the Government’s integrity and could cost them dearly. Of course the Telco has their shareholders to consider, but breaking the rules is breaking the rules and above all and foremost, the Government has the entire population of Australia to consider, and has acted accordingly.

As an initial result, Telstra now sees it shares plummeting to their lowest point since entering the ASX in 1997. They also have to explain their actions to their shareholders which has already seen billions of dollars wiped from share pricing. The Government meanwhile, without Telstra on board, have a NBN selection process that will now be perceived as a ‘fair’ and ‘equal’ platform that will offer an ‘open access’ environment which will encourage competition; provide innovation and growth potential through regulatory guidelines; and a future broadband network that should benefit both consumer and business alike.

So what now for Telstra?

The wounded incumbent will now have to consider contingencies as a result of being ‘dumped’. Some say they will try and re-enter the NBN process and negotiate with the Government. The problem here is that it could be too late, and that other bidders will see this approach as a ‘breach’ of guidelines and ‘unfair’.  Either way, litigation could be imminent in a race with such a high purse.

To even contemplate Telstra laying down without a fight is absurd. If they decide not to pursue legal proceedings, they may in fact build their own network as an alternative, or should I say ‘upgrade’ their existing network. Telstra have got the finance, firepower and experience to scale up their network so that it’s faster and made available way way before any future new national broadband network is built. One mustn’t forget all their ongoing technology research and testing that they continuously conduct. Using Wireless technology and as close as early next year, Telstra can roll out robust high speed broadband that can reach 21Mbps for rural areas, and between 50-100Mbps with VDSL2 and Hybrid Fibre Cable technology in maor metropolitan regions. Funnily enough, the latter of these broadband speeds will easily surpass the 12Mbps minimum requirement set by the Government on the NBN process too.

Don’t worry about Telstra folks, they are far from out of the race, regardless of what you, me or anyone else thinks.

Telstra has left their NBN bid submission go until literally the eleventh hour before lodging a ‘non compliant’ proposal. In what seemed like an eternity, the NBN bidding deadline is now closed. 

Industry analysts say that it comes as no surprise that Telstra lodged a bid, even after they continuously said they would not do so until they obtained reassurance from the government that the successful applicant would be separated (Structurally or Functionally). Funnily enough, it is believed that Telstra shares would of plummeted significantly, almost to the tune of $10 billion dollars, if Telstra didn’t commit to the NBN tender process.

Telstra now joins the likes of Terria, Optus, Axia Netmedia, Acacia and TransACT along with the Tasmanian Government  who have also lodged bids as proponents for the upcoming $4.7 billion dollar tax payer funded National Broadband Network project.

The successful applicant is expected to be announced by March 2009 and will have a 5 year window to roll out the entire broadband network. With the NBN bidding process already delayed by several months, and with who knows what type of obstacles (both legal and otherwise) around the corner, the NBN might take longer to implement than we think. 

Although the current global financial downturn has witnessed the fall of the Australian dollar, Communication Minister Stephen Conroy has rejected claims by Telstra chief financial officer that it would increase costs for the proposed development of the new national broadband network.

Mr Conroy argues that some of the estimates have actually come down to between 10 and $15 billion, and that it wasn’t that long ago when there was speculation that suggested the NBN would cost around $25 billion.

With proponents having until the 26th November to enter bidding submissions, Mr Conroy remarked that there will be a lot more public commentary surrounding the $4.7 billion project that the government will not be buying into.

Many industry analysts are now suggesting that Telstra has tightened up as a favourite to win the broadband network tender rights due to the unsteadiness of the financial market along with the fact that the Terria consortium is now finding it difficult to secure funding. It’s also been stated that it would not come as any surprise to see the government relax regulatory guidelines that could of potentially seen Telstra structurally separated.

The current eventuations certainly do make it appear that the government wants the NBN project put to bed and commenced ASAP! I guess it’s only a matter of a few months until we see an outcome (finally!).

In a contradictory announcement made by Telstra, the telecommunication giant revealed that it’s now planning to offer wholesale ADSL2+ services to competitors. This statement comes only after several months of rolling out ADSL2+ services to over 900 new exchanges.

The remarkable turn-around of policy has left industry experts scratching their heads. Coincidently, Telstra has also simultaneously called on the government to end speculation over a possible structural separation split into retail and wholesale sectors.

Is it possible that Telstra is preparing a contingency plan with this latest ADSL2+ wholesale announcement on the chance that it doesn’t win the NBN or is structurally separated? Perhaps this latest ADSL2+ wholesale policy back flip is part of a bigger picture such as a network upgrade? Afterall, its puzzling to witness a change of heart like this from telstra after such a short stint, and why at this particular point during the NBN process?

With increased conjecture mounting around a structural separation along with the additional pressure placed on the government by Telstra, its certainly leading to interesting times ahead.

source: Telstra tells govt: end speculation
source: Telstra’s reversal: now it plans to wholesale ADSL2+

The 2020 Summit was a success for many various reasons such as it raised concerns, sprouted ideas and addressed important issues challenging Australia and it’s future prosperity. In the final report of the Summit, Prime Minister Kevin Rudd was urged to split the wholesale and retail elements of Telstra in order to obtain a competitive market for the Broadband Industry.

It appears that Telstra has fallen heavily into the structural separation line of fire. What makes a possible separation more evident is the fact that not only are Telstra’s competitors calling for a split, highly influential and prominent business people (some of which were in the Summit group) are now also urging the government to perform a structural severing.     

The government should assess the case for vertical separation of the network owner from retail carriers and carriage service providers to promote access,” the group’s recommendation in the report said.


source: misaustralia.com

Competition or no competition, that is the answer! The deconstruction of Telstra as a vertically integrated Telecommunication company could be nigh as the push for it’s structural separation gains momentum. In a report released by ‘Competition Economists Group’, who were commissioned by Telstra’s arch rival Optus, key findings suggested that Telstra (if not structurally separated) would have very powerful incentives to damage competition in the Telecommunication Industry if it were to win the National Broadband Network bid.

As reported back on April 1st, the Structural Separation of monolithic Telco companies in the UK, Europe and now New Zealand are solving anti competition dilemmas. But what about Telstra and it’s shareholders? Well it seems that conjecture and speculation cause investors to be weary and that structurally separating Telstra into retail and wholesale divisions could actually ease the uncertainties behind Telstra’s future and  restore or even improve market confidence.

“This means that if the NBN is owned by a vertically integrated Telstra, then discrimination — and damage to competition — will be a much bigger problem under the NBN than today.”

Today’s report is expected to be the first step in a concerted campaign led by Optus to lobby the Government for a forced split of Telstra.

source: news.com.au

Due to delay from Telstra in releasing critical network information for all proponents of the FTTN NBN bid to examine, Senator Stephen Conroy was left with no alternative accept to extend the deadline for proposal submissions until 12 weeks after the information is released.

Telstra had recently provided some information on it’s network, however it fell short of the comprehensive information needed. In response to Telstra’s sluggish and uncooperative actions, the Government moved to introduce a bill into parliament which will force Telstra to disclose all the relevant network information that’s required.

NBN bidders will have 12 weeks to examine network information

The Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, today announced that parties participating in the National Broadband Network process will have 12 weeks to consider network information from the date all material is made available.

“In February, I wrote to carriers seeking the voluntary disclosure of network information. All carriers either have or are working towards providing this information in a timely manner and I welcome this cooperative approach,” Senator Conroy said.

“Telstra has provided some network information however despite its best efforts some information is not yet available.”

“The provision of network information is vital to allow potential proponents to build the network to compete on an equal basis.”

“The National Broadband Network represents this nation’s single largest investment in broadband infrastructure. It is important that interested parties have adequate time to make use of information about existing infrastructure,” Senator Conroy said.

For this reason the Government will ensure potential proponents will have 12 weeks to consider network information before being required to lodge their proposals. The Government will amend the Request for Proposals to reflect this timetable.

Further information on the National Broadband Network and how to make a submission is available at www.dbcde.gov.au/nationalbroadbandnetwork

source: minister.dbcde.gov.au

Although not made from earth, the name TERRiA is rock solid and has been adopted (less the Firma of course) as the new name for the group of carriers formerly known as the ‘G9′ (or should I say the G8).

The consortium is made up from Optus, AAPT, iiNet, Internode, Primus, Macquarie Telecom,  SOUL and TransACT with the the ninth member ‘PowerTel’ now owned by AAPT, and to avoid further discrepencies down the track, it makes timely sense that the group come up with the new name of TERRiA. 

Michael Egan recently announced the new name, which is a contraction of ‘Terra Australis’, and said that it also phonetically the same as a terrier which eludes to tenacity and energy.  TERRiA also took the opportunity by saying they will develop a structurally separated model, however, had not yet responded to the current version of the NBN RFP.

“We …like the fact that it’s phonetically the same as terrier which hints at the energy and tenacity which will be needed to win the best communication outcome. In a word it sums up both our determination and the scale of the National Broadband Network with the commitment of coverage across the land.”

source: itwire

There appears to be no stopping the war over Broadband in Australia with a group of ten leading Australia ISP’s taking out a full page newspaper advertisement to promote their new website ‘fairgobroadband.com.au’. The new site basically takes a shot at potential Telstra pricing if it were to win the National Broadband Network bid.

AAPT, iiNet, Internode, Macquarie Telecom, Optus, PowerTel, Primus, Soul, Telarus and TransAct are the ISP’s who are leading the charge against Telstra and the push on fair pricing for Broadband. Their new site has a very limited menu interface but does in fact have a petition form so that you can voice your concerns to the Government over pricing for the new NBN along with links to a coinciding PDF; a respective speech by Optus CEO Paul O’Sullivan; and a link to the ‘Tell the Truth Telstra’ site. It appears that these sites, and information on such, have been brought about and developed specifically to counteract in what’s been described as the ‘Telstra Propaganda’ website ‘Nowwearetalking.com.au’.

There is a clear and present danger that in its rush to roll out the National Broadband Network (NBN), the Government will give away critical competition and consumer safeguards. This would see Telstra regain its monopoly control of fixed line voice and broadband; drive much higher broadband prices; and in turn keep broadband usage well below its potential. Such an outcome would see Australia fail to secure the true benefits of broadband.

Visit or register your concern by visiting http://www.fairgobroadband.com.au/

After recent talks with Optus-led G9 Consortium, German based Telecommunication group ‘Deutsche Telekom’ is examining prospects behind partnering G9 for a national broadband network bid. 

Optus chief executive Paul O’Sullivan has also called for the NBN bid deadline to be extended due to proposal submission time restrictions that is being brought about by the legislation that’s currently being passed through parliament to force Telstra to release information on it’s network.

If the Communications Minister ‘Stephen Conroy’ is not losing enough sleep as it is, recent comments from opposition spokesperson Bruce Billson who is calling for an inquiry by the Auditor General into the lack of Transparency behind the tender process, should surely strip him of some zees.

As the NBN proposal cut off date looms, Mr Conroy must be optimistically wishing for a happy ending. However with both ‘known’ major tenders threatening to pull out of the race if certain guidelines are not met, the minister might be reaching for the Valium prescription instead of a double shot of Vanilla Bean Caramel Frappachino Mix.

Proposals are due by July 25th, but Optus chief executive Paul O’Sullivan has called for the deadline to be extended by five months to give companies enough time to consider network information that is expected to come from Telstra after legislation is passed to compel its release.

Without the information, Mr O’Sullivan argued, the request of proposal guidelines by the government would favour Telstra

Opposition communications spokesman Bruce Billson yesterday called on the Auditor-General to inquire into the national broadband network tender process, saying it lacked transparency and that the July 25 deadline benefited Telstra.

Read more at misaustralia.com

In a recent speech on the upcoming National Broadband Network by OPTUS CEO Paul O’Sullivan, he stated that his overall message could be summed up in one phrase ‘Australia cannot take Competition in Broadband for granted’. In colloquial terminology using a famous Aussie expression it sounds more like he’s asking for a ‘Fair Go’ due to the current (and past) state of the Australian Broadband Industry and the Policy Guidelines behind the NBN process.  

Mr O’Sullivan also referred to the National Broadband Network as ‘Open Heart Surgery’ and touched on subjects that inlcuded The OPEL Decision, Structural Separation and gave an insight into the Broadband Market and the struggle that many ISP’s have against Telstra’s monopoly of the industry due to regulatory inadequacies.

Telstra has used its market power, over two thirds market share in residential fixed voice, to keep prices high – whilst pocketing the savings from the lower wholesale prices we have been forced to give it.

But recent developments are giving us increasing concern that the fine words of opposition are being lost under the heavy burden of Government and in the face of a seductive though anticompetitive pitch from Telstra.

If the new national broadband network is a repeat of Telstra controlling bottleneck infrastructure it will be a comprehensive policy failure – and Australian consumers will literally pay for this mistake.

we stand ready to provide a compelling proposal which will dramatically improve Australia’s broadband services. But we can only do this if we are given a fair and reasonable chance to put in a serious and compelling bid.

Read the entire speech article at news.com.au

The federal government has finally announced the release of the ‘Request for Proposals’ (RFP) to build the new high speed National Broadband Network. Up to $4.7 billion has been granted by the government to the successful bidder to build a network which must deliver broadband speeds of 12Mbit to at least 98% of Australian premises.

Analysts are predicting that Telstra will win the bidding proposal due to the ease it would have of rolling out (of should I say updating) a network. Considering the amount of infrastructure that it already owns, along with their extensive knowledge of the networks already in place, it appears that Telstra’s chances of winning the National Broadband Network project to be extremely high. Strengthening this theory is the numerous handicaps that Telstra’s competitors will face.

Lodgements for proposals close on July 25.

On obstacles facing Telstra’s competitors…
“In using network information, proponents acknowledge that they do so at their own risk and acknowledge that neither the Commonwealth nor carriers who have provided the Network Information bear any liability in relation to their use of the data.”

Then there is simply the limited time they have to access, digest the information and incorporate it in their plans: they will gain access to the information in May and June and the closing date for response to the RFP is 25 July.

Pro’s for Telstra…
In contrast, not only does Telstra have total access to this information in ways that should be well integrated with its other information systems, it is intimately familiar with it and, as it has repeatedly boasted, has already done all the planning and could start rolling out the network at the drop of a hat.

Government invites National Broadband Network proposals: Media Release
National Broadband Network Request for submissions on regulatory issues: Media Release
Read more at itwire.com

Joining the spate of recent submarine cable projects is Telstra. The Telco giant has announced that it’s embarking on a 9120km fibre cable deployment from Australia to Hawaii with the commencement of the project scheduled for this coming Thursday. 

Stretching from Sydney’s Tamarama Beach across the Pacific to Hawaii, Telstra says the new Telecommunications Cable will alleviate the ever growing bottlnecks between Australia and the United States. The new link is slated to carry 1.28Terabits (1.280 Gigabits) of data per second, however Telstra adds that it’s not expected to create faster or cheaper Broadband Internet services as a result.

Kate McKenzie from Telstra wholesale said the new Australia-US connection would not lead to increased broadband speeds, or to a fall in prices.

The cable project was aimed at increasing bandwidth not speed she said, adding it would be “unrealistic” to think that, after the expenditure required to lay the cable, broadband prices would be lower.

Source: news.com.au article

If Britain, Europe and now New Zealand are anything to go by in the Telecommunication’s Industry, then surely it might nearly be curtains for Telstra as a vertical integrated company? In the latest structural separation of a monolithic telecommunication’s company, Telecom New Zealand has finally gone under the hammer for a three degree separation. The effect of this is meant to make Broadband Internet access cheaper for the consumer and grant ISP’s easier access to Broadband networks thus pushing competition, efficiency and paving the way for a stronger economy. 

Vertical integration is almost a term of the past when it comes describing dominant telco companies. The irony behind the rise and rise of Telstra as Australia’s Goliath telco is the possible demise it now faces, or should I say ‘separation’. It appears that the only option left for the Government is to follow the lead of overseas constituents by dividing Telstra into retail, network and wholesale divisions. The Kevin Rudd led charge hasn’t got too many options left up their sleeve, and considering the quagmire of the telco industry as it now stands today with numerous anti competitive claims, law suits, exorbitant prices etc.., it just make sense to separate. Is there a choice? As either caging Telstra or separating them will still lead to endless courtroom battles of litigation anyway.  The latter part of 2008 will certainly bare some interest whatever the case may be.

According to news just to hand, Telstra are currently evaluating the possibility of lowering Wireless Broadband prices. With rivals offering Wireless Broadband Plans substantially cheaper than BigPond, along with expected Wireless speed upgrades, Telstra may have no option other than to lower prices and or raise usage limits.

Broker Goldman Sachs JBWere also notes competition from wireless products could cut into Telstra’s fixed-line broadband offerings.

Telstra said it had 329,000 wireless broadband customers at June 30, 2007, but this number is expected to have risen significantly in the past six months.

In June, Telstra had a market share of around 47 per cent

Read the entire ‘Telstra has scope for cheaper broadband’ article at MISaustralia.com

Telstra have just announced yet another upgrade with Next G planned  to make the jump to ‘hyper speed’ with 21Mbps speeds to be introduced in 2008 followed by speeds up to 42Mbps in 2009.

At the GSMA Mobile World Congress conference in Barcelona, Telstra CEO ‘Sol Trujillo’ announced the exciting news for increased wireless Broadband speeds across their Next G network using HSPA+ technology. No firm dates as yet, however a jump from the current 14.4Mbps that’s currently achievable to 42Mbps in the next year or so will open up opportunities for new and optimized voice, data and video transmissions.

“We have an evolution roadmap with Ericsson which will deliver customers speeds of 21 Mbps in 2008 across our national Next G network – a world first – and 42 Mbps in 2009 using HSPA+ technology. Our partnership with Ericsson continues to break the speed barrier,”

Read the entire article at itnews.com.au

With the recent news of Telstra enabling a further 900 Exchanges with ADSL2+ access, also comes doubt over the legality behind the ‘regulatory guarantee’ that Senator Conroy has granted to Telstra.

Managing Director of Internode ‘Simon Hackett’ claims that after making enquiries with respective agencies in regards to the recent announcement, he is puzzled by the legalities behind the guarantee. He’s also suggested that the Federal Government publish the precise contents behind the guarantee with Telstra along with a legal explanation.

“Years of precedent and practice (multiple Competition Notices) have made it clear that where Telstra offers a monopoly retail broadband service, they are required to offer it at wholesale, and at an access price that is tenable

“All existing BigPond Retail services are offered as a wholesale access version to the market in accordance with the above

“So if Telstra has been ‘guaranteed’ not to be required to be good wholesale citizens, what is to stop them withdrawing from the entire wholesale ADSL market – at all speeds, in all exchanges, nationally?,”

“And how, on earth, is the resulting rise in access cost for the 50% of non-BigPond ADSL consumers (as BigPond are the most expensive retail DSL provider in the market) going to be in the long term interests of those end users?

Read the entire article at APCMag.com

In potentially good news for those in regions where Broadband speeds are limited, Telstra today released a surprise announcement stating that it will enable a further 900 telephone exchanges with ADSL2+ services.

The decision to enable the additional ADSL2+ exchanges has been brought about by a recent letter sent to Telstra from Communications Minister ‘Senator Stephen Conroy’ who stated that the Federal Government would not force Telstra to provide ADSL2+ services to competitors.

Fast broadband technology using ADSL2+ is to be rolled out by Telstra to an additional 900 local exchanges serving 2.4 million households, the Prime Minister Kevin Rudd and the Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, announced today. – Gov. Media Release

“This initiative provides the bandwidth families need so they can simultaneously use several devices at home – one parent can download work files, another can plan the family holiday online, while the kids are also online researching for school projects,” – Mr Trujillo

“As a result of this advice, I concluded that there is a high degree of regulatory certainty in relation to the ACCC’s approach to wholesale ADSL2+ services. I have written to Telstra expressing my position, acknowledging that I agree with the ACCC’s stance. – Stephen Conroy

Telstra Media Release
Government Media Release
Letter from Conroy to Sol

The Competitive Carriers Coalition (CCC) has strongly urged the Government to slash prices by up to %20 to save the economy from rapidly rising Inflation. The Industry group suggests that other developed countries are currently reviewing their competition standards and failing to follow suit would only see Australia fall further behind. In an article appearing on thewest.com.au, they further add, that Telstra is to blame with it’s monopoly on the Industry and inflated wholesale pricing.

“We pay more than just about every country in the OECD for basic telecommunications services,” Mr Forman said in a statement.

Mr Forman said an estimated, conservative reduction in charges to carriers of 20 per cent would save the economy $2.5 billion a year.

“At the heart of this problem is the inflated wholesale prices Telstra charges for access to its monopoly network and the inability of the ACCC to manage Telstra with the limited powers it now has.”

The Australian Competition and Consumer Commission has released it’s final declaration decision that will witness Line Sharing prices drop to a respectable $2.50 per service at the start of 2008. After several years at loggerheads with Telstra over LSS prices, the Telco giant succumbed to the Watchdog’s continual pressure and reduced pricing from it’s initial  $15 per month proposal in 2004, down to $2.50 per service. The pricing should be available to everyone and come into effect as from January 1, 2008 until July 31, 2009. A great decision all round for the Broadband Industry, competition, independent ISPs and the consumer.

“The ACCC’s final decision is to regulate the LSS on a national basis until 31 July 2009. Declaration of the LSS will be in the long-term interests of end users,” ACCC Chairman, Mr Graeme Samuel, said today.

“The ACCC’s final view is that regulation of the LSS will promote competition in broadband markets. This will allow consumers to choose from a wider range of broadband service providers, increasing their opportunity to gain a more competitive service-price offering.”

Read the entire ‘ACCC issues final decision on regulation of the Line Sharing Service’ announcement at the ACCC.gov.au

Back in the early stages of Australian Broadband Internet development, namely ‘Cable’, we witnessed Telstra and Optus pitted against each other in a race to rollout high speed Cable Broadband networks. Sure one could argue that competition is a ‘good thing’, although a duopoly may not get the desired results. But then we have the flip side of the equation. As we had a government back then which let these two companies ‘double up’ on rolling out expensive Cable Infrastructure which some might argue was a ‘wasted’ opportunity along with a tremendous amount of money.  The question is – Couldn’t Mr Howard have come up with a better solution at the time instead of letting the Telco’s double up their Cable Networks?

Now, a couple of election terms later, we are again witnessing the ‘doubling up’ of Broadband Infrastructure as the Government’s Australian Broadband Guarantee initiative hand over funding to Telstra to install DSLAMs in South Australia that have already been served by Internode. The catch is, Internode have also been funded by the Australian Broadband Guarantee initiative to install the same ADSL2+ technology at some of the same exchanges??

This quote below was made by a furious and bewildered ‘Simon Hackett’ (Internode CEO).

“In the regions we operate in, in regional SA, there are 11 exchanges in that list that represent overbuilds of our existing regional wireless networks (networks which hold formal ABG approval to service for new customers as of now), and 3 out of that 11 have Internode DSLAM’s (sic) in them already, to boot!” he wrote.

“That means that Telstra have mislead (sic) DCITA about which exchanges don’t have ADSL in them already, and DCITA have failed to check their own records to verify those claims.”

“Telstra published a large list of regional exchanges for deployment by March 07 ( a strangely familiar list of exchanges…) and then quietly removed them again, before doing the ABG negotiations – and now I’m sure they’ll mysteriously build those exchanges very, very quickly – as if they had them all there ready for months, and just not turned on for political reasons. The whole idea is to expand access, not to have Telstra take a government handout to help them crush competitors by overbuilding them. Shades of FTTN.”

Read the entire article at Commsday.com

Telstra has elevated it’s legal proceedings on ‘Senator Helen Coonan’ by asking the corporate watchdog to investigate claims that the Communications Minister misled members of the public on Telstra services availability. This is yet another claim toward the accusation that she unfairly awarded OPEL the tender rights for the Broadband for the Bush initiative.

Mr Irving accused Senator Coonan of having “misled members of the public to believe they are unable to acquire services from Telstra and that they can only acquire those services from Telstra’s availability competitors”.

Telstra believes the documents may help it pursue further legal action against the senator for alleged procedural unfairness in awarding the tender to OPEL. Telstra believes OPEL was the only bidder to be told it could receive funding above $600 million, and that it was given the opportunity to change its bid, contravening the rules of the tender.

Read the entire article at Australia IT.