Australia’s commercial television networks are in trouble. Not simply because of the Coronavirus but because they failed to develop effective strategies to counter the arrival of Netflix and other ‘streaming’ platforms – something anticipated long before it happened.
Last week the federal government threw the struggling networks a financial lifeline. It includes subsidies and deferred or waived fees and it reflects savage advertising revenue declines. Sadly for the viewing public however, local drama, children’s and documentary content quotas have been suspended.
As most of us are holed-up in our homes working or studying online as a response to the Coronavirus a bunch of politicians ignored medical advice and gathered together in Canberra. Perhaps it’s time for a virtual parliament?
Of course this would require that we first fix the NBN so that all our elected representatives and their advisors have decent broadband at home and in their electorate offices.
The reality is many families will struggle with inadequate telecommunications, especially those NBN customers with the FTTN (fibre-to-the node) service delivered over old copper wires.
To be fair to Mr Fletcher, the culprits who destroyed a nascent 21st Century broadband network – Tony Abbott, Malcolm Turnbull and Mitch Fifield – have all gone offline, so to speak. They’ve left parliament and they left behind something smelling like what comes out of the wrong end of the elephant in the room.
Telstra’s decision to only offer a maximum 50Mbps plan to more than half its NBN customers is another setback in the quest for #BetterBroadband and further vindication of Labor’s plan to make Australia what Malcolm Turnbull subsequently dubbed an “innovation nation”. It’s the latest fulfilment of a highly political decision by Tony Abbott to instruct Turnbull to demolish NBN Co.
If anyone knows about good and bad broadband it’s Telstra. And they know that anything other than fibre is second best.
You know the tune, so let’s all sing along: Oh dear, what can the matter be?
Or, if you prefer AC/DC, “Dirty deeds, done dirt cheap”. As we approach the NBN’s nominal completion date of June this year the decision to dump 21st Century fibre and cobble something together using old copper wires and run-down Pay TV cables has left too many Australians humming a very sad tune.
The release this week of the latest financial report from NBN Co underscores what a debacle we have on our hands.
Last week submissions closed for a parliamentary inquiry into the National Broadband Network. TelSoc, of which I recently became vice-president, lodged a submission prepared by a working group of highly qualified industry experts. Unless the federal Government takes notice of two key recommendations millions of consumers are destined to continue suffering second rate broadband for years to come.
This massive infrastructure project is scheduled to be completed by mid-year, although as I have previously pointed out that’s at best a theoretical deadline given that replacing about a third of the fixed-line network will arguably need to begin almost immediately.
A report released by communications minister Paul Fletcher has confirmed that so-called ‘Internet piracy’ declined dramatically following the arrival of Netflix and other online streaming services – debunking the need for ‘site-blocking’ laws controversially introduced following a well-funded lobbying effort by local representatives of the Hollywood studios. In the same week NBN Co announced it is cutting in half its pricing for new connections to encourage reluctant consumers to sign up to its troubled broadband service.
What these two incidents suggest is we need politicians to engage more with industry experts when making technology-related policy decisions. We also need IT / telecommunications groups to do more to ensure the government of the day is well advised. And we need more mainstream media focus on keeping everyone better informed.
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.
Internet access is now the most complained about telco service in Australia, according to the Telecommunications Industry Ombudsman’s latest report. The state of our trouble-plagued NBN continues to see consumers heading to the authorities in the faint hope their broadband problems can be fixed. Alas, the future remains bleak for millions of NBN Co customers until the Government abandons a flawed set of technologies largely incapable of delivering 21st Century speeds and a reliable service.
Back in December 2016 I attended a dinner at which then prime minister, Malcolm Turnbull, was one of the other guests. Toward the end of the evening Mr Turnbull beckoned me to join him in conversation.
Not missing an opportunity I told him that his NBN was in big trouble. Actually, I used far more colourful language to describe this fetid project. However, I also said that there was a solution that should be adopted ASAP. “I need to know about this. Come and see me”, was the then PM’s response.
According to PwC’s 18th annual Australian Entertainment and Media Outlook, video streaming platforms will outstrip Foxtel and other traditional Pay-TV services for market share in the next two years. More than half Australia’s adults are paying for subscription video-on-demand (SVOD) services, according to Media Partners Asia research.
As sure as the Sun will rise from the East tomorrow we’ll soon enough be rushing out buying 8K televisions, the next technology upgrade bringing even more ultra-high definition pictures to our screens. When the original high definition TV’s went on the market they were so expensive it took years before they became commonplace in Australian homes. These days more than 90 percent have HDTV’s in some form, and prices have dropped dramatically.
Increasingly, people are watching content delivered via the Internet rather than traditional terrestrial broadcasts. Yet, for many consumers of film and television content our dud NBN means upgrading to the latest HDTV is pointless.