To quote veteran IT journalist Sam Varghese,“NBN Co’s latest attempt to put lipstick on a pig – the animal in this case being the network it is building and the make-up in question being speed – goes one step further than the ‘alternative facts’ which its former chief executive, Bill Morrow, used to dish out”.
The spin doctors at NBN Co are understandably annoyed at media reports reminding people that Australia has dropped from 30th to around 60th in global broadband speed rankings. So they came up with a novel solution. They made up their own numbers. The trouble is nobody in the IT world seems to believe them.
Earlier in the week Telstra chair, John Mullen, conceded the company must accept some of the blame for our flawed National Broadband Network due to its ‘recalcitrance’ back in 2007/2008 when it submitted a petulant bid that didn’t meet the requirements of the government tender to build a nationwide network. However, he then went on to attack the project, in particular drawing attention to NBN Co’s decision to compete more activley in the so-called ‘enterprise’ market – the provision of wholesale rather than retail products.
It’s all very well, if not ironic, for Mr Mullen to complain about a company offering a competitive service but let’s not forget that one of the biggest impediments to NBN Co’s financial performance, and thus its overall success, is the extremely generous terms of the deal the Coalition did with Telstra when Malcolm Turnbull followed Tony Abbott’s instruction to ‘destroy’ the NBN and opted to buy access to Telstra’s old copper wire network and its ageing Pay-TV cables.
In my view, NBN Co ought to consider renegotiating the deal with Telstra over access to their ‘pits and pipes’ and in return agree not to compete in the enterprise market. And Telstra should repair the damage it caused by negotiating in good faith – for Australia’s sake.