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.
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.
While neither side of politics said much about our increasingly-maligned National Broadband Network during the recent election period, the fact is Australia is falling behind in the race to leverage the benefits – economic and social – of an emerging digitally-enabled future.
“It’s the economy, stupid” is the slogan attributed to James Carville, who was Bill Clinton‘s 1992 US presidential campaign strategist. It was about creating a clear message about the candidate’s plans for the country.
In 2015, newly appointed prime minister Malcolm Turnbull similarly coined the term “innovation nation” to describe what he saw as a pressing need to make Australia more innovative and agile – and an issue that would differentiate his approach to government. Turnbull’s problem was that two years earlier, under pressure from his predecessor Tony Abbott, he had laid down tracks leading in the opposite direction.
As I’ve been arguing for some time now we need a bipartisan rescue plan if we are to reap the substantial benefits flowing from a digitally-enabled global economy.
Labor’s communications spokesperson, Michelle Rowland, has outlined a very sensible approach to fixing the dud NBN. In fact, should the Coalition retain office it would be well advised to adopt Labor’s plan.
As Rowland rightly points out, six years of flawed technology choices has created a delivery disaster and it will be no simple task to return the project to its original vision – fast, reliable and affordable broadband for all Australians.
2019 is shaping up as the year we’ll be forced to face the fact we are building a National Broadband Network that simply isn’t good enough. It’s also the year our major telcos will start rolling out their capital-intensive 5G mobile networks, having spent millions of dollars buying up spectrum from the federal government.
Nobody seems to have asked if we really need 5G right now. Or why Australia is rushing to be one of the first countries to adopt 5G when 4G speeds are more than most of us realistically need at the moment, or will need for some time? Too few commentators have delved into the ‘value proposition’, or asked if 5G, at least in its first iteration, will actually be all that some people are predicting.
As a nation keen to be a leader in the 21st Century’s digitally-enabled world we’d arguably be better off fixing the NBN before investing in mobile networks few in the know reckon will add much to the consumer experience.
Across the country people are coming to understand that the broadband network we are being delivered is a dud – especially in the bush!
The boss of the ACCC, Rod Sims, has told The Australian “its recent dealings with the retail telcos has highlighted a weakness with the fibre-to-the-node (FTTN) access technology”.
For numerous broadband experts, not to mention millions of hapless NBN customers, this might be seen as a classic ‘no shit Sherlock’ moment. However, it is probably the most significant recent development in the long running saga that began with Labor’s 21st Century fibre-based national broadband network, only to end in tears for so many when former prime minister Tony Abbott ordered his heavily-wedged communications minister, Malcolm Turnbull, to “destroy” the NBN.