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The extenuating circumstance here is that the opposition, which is now trying to get elected, privatised the national telco starting in 1997. What that meant i
by quink 14y ago
The extenuating circumstance here is that the opposition, which is now trying to get elected, privatised the national telco starting in 1997.
What that meant is we had a for profit company, Telstra, owning both the entire phone network and the biggest cable network, with big stakes in PayTV and joined at the hip through that to the biggest media organisation in the country, Murdoch's. The only competition worth speaking of is another HFC rollout by a competitor that Telstra overbuilt at every turn and made much less viable and DSLAMs by other providers in a minority of local exchanges that still require payments to Telstra including ULL fees. Telstra was also privatised without any vertical separation worth speaking of.
The NBN, evil as government run business may be, represents the most viable and sensible solution to the problem of Telstra. The people putting it together and the ACCC have made sure that it wouldn't be like Telstra at all. What it represents is, like water or electricity infrastructure, a single path to the premise at the lowest possible cost, a mandate of falling prices in real and nominal terms and restrictions by the ACCC being planned out until 2040 already.
How do we know it will be good for competition? Because every telco in the country, Telstra included, is unhappy wih particular details, but they are on board, and Telstra included, happy enough to be there.
Also, the NBN is fairly dumb as a network. A lot of things are handled by the provider, the FTTH deployment of the NBN goes up to layer 2 only. We've tried your proposal of letting private enterprise do the lot, and all it has led to is an increasingly decaying copper network and no HFC rollout of any major note since about 1997.
If broadband becomes a right, not a privilege, especially in a country of suburban sprawl, then you need to treat it like water or electricity. Dumb wholesale network at the bottom, vibrant conpetitive market at the top.