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OPEL: the dog ate my homework



Topic: Telstra , Shareholder

Tags:    auditor-general  blog  broadband  dcita  helen-coonan  opel  rhonda-griffin


After more than two weeks the Department of Communications, Information Technology and the Arts (DCITA) finally managed to get most of the OPEL coverage maps onto the internet.

Now we know the reason for the delay.

The scale of the misuse of public funds is blindingly evident, and will be one of the enduring scandals of this government.

The maps confirm that money is being pumped into areas where infrastructure already exists, including provision of duplicate ADSL services in a number regional cities and large towns where Optus should be able to provide them on a commercial basis (this is even leaving aside the outer metro areas which Optus may claim are part of its extended rollout – designed to muddy the waters about their "cash and in-kind" contribution)

Why is this important? The government is underwriting otherwise profitable deployment putting money straight onto the SingTEL OPEL bottom line.

On top of the outrage of funding commercial ADSL infrastructure, there is still doubt about OPEL’s ability to provide the wireless coverage it claims through WiMAX technology. In publishing the coverage maps the department has created such a sweeping set of disclaimers (www.broadbandnow.gov.au) they must be the public administration equivalent of “the dog ate my homework”.

I have reproduced just three of the six disclaimer points:

  1. Coverage portrayed on the national map is not to scale in order to better allow visualisation of site enablements.
     
  2. Depictions of WiMAX and other wireless coverage on these maps do not take into account local topographic features.
     
  3. The Department of Communications, Information Technology and the Arts makes no guarantee about the suitability of these maps for any purpose by any person whatsoever.

Putting this into plain English:

  1. This is an artist’s impression of a network, so what you see is not what you get.
     
  2. If you live in a claimed wireless coverage area, you still won’t get an OPEL service if you live behind a mountain, in a valley or among a lot of trees.
     
  3. Don’t blame me if the information is wrong, because I told you it was.

DCITA has been quick to welcome the finding of the Auditor General (www.anao.gov.au) that it had correctly followed its own guidelines in awarding OPEL the contract, in response to issues raised by Senator Conroy.

But the Auditor General only looked at process – reporting, administration, accountability – not whether the technology selection was correct, whether government policy objectives are right, or if any stated objectives will be matched by appropriate outcomes.

No, the Auditor General’s office will review the OPEL project in 2008-2009, after most of the almost $1 billion funding has been spent/wasted.

As with HiBIS, any “wrinkles” in a program will only be reported after the fact. Earlier this year the ANAO reported that DCITA had referred three cases of potential fraud under the HiBIS program to the Federal Police during 2005 and 2006. This was because of “anomolies” (www.anao.gov.au) found in 4000 claims worth nearly $10 million.

Strangely, it was only in May 2007 that we heard about it – the few who were listening anyway.

It raises serious issues about the ability of government to make complex technology decisions and administer quasi-commercial projects.

Next, they will be applying the same expertise to the micro-management of FTTN.

Comments

Khaled Sukkarieh
12 July 2007
4:35pm

Comment Permalink

This is getting crazier & crazier, surely to God someone must be able to knock some sense into the government head and pull the plug on this whole mess and start again?! or has the horse bolted?

Adrian Featherstone
12 July 2007
4:54pm

Comment Permalink

I noticed some 'existing' coverage sites around the centre of Australia that do not have any coverage whatsoever but are claimed as such. Eg Amata does not have ADSL coverage or next G but Opel reckons it does...strange that.

Tim Mildren
12 July 2007
5:04pm

Comment Permalink

This is a disgrace. Regardless of wether you are a Telstra supporter or not. This was suppposed to increase coverage to rural users. Instead, as per usual it is more government spending which could be better utilised Way to go Coonan and Johnny Youve done it again...

Ross Baker
12 July 2007
5:21pm

Comment Permalink

I find it anomolous that when we rolled out the HFC network there was much public debate about Telstra and Optus rolling out duplicate/overlay networks simultaneously and how this was a waste of money (even though none of this was tax payers money). Today, we see OPEL sponsored to the tune of $1bn of tax payers money to roll out a duplicate network and no one bats an eyelid!

Haydn Tyson
12 July 2007
5:49pm

Comment Permalink

RE: OPEL – the dog ate my homework Before attacking other wireless providers over accuracy of their coverage maps, Telstra should concentrate on making sure their own coverage maps are up-to-date and accurate. As a front line Support Consultant for Wireless issues, I know that there are a lot of disappointed customers out their with restrictions on where they can connect on a network that supposedly covers 98% of the population For an example, take Buderim in Qld. Buderim is a very mountainous region on the Sunshine Coast and Telstra has their coverage maps showing nearly the entire area with coverage that does not require an external antenna. When escalating a no coverage issue for an angry customer (and shareholder) living in Buderim, the written response from our investigation team received was (copied and pasted) “buderim is a terraain challenged location, always has been, always will be” This is not an isolated incident.

Pot Calling Kettle Black
13 July 2007
7:45am

Comment Permalink

Customers complain on websites that Telstra will not help them get a working NextG servcice even though the coverage map says so. Funny why don't you write about that . If there is 1 customer complaining I am sure there are 1000's of others. This article reeks of double standards. I am sorry but Telstra CANNOT claim the high ground on this one.

Shaun Williams - Telstra Remote Radio
13 July 2007
9:05am

Comment Permalink

From a technician who's worked for our nation’s most remote customers for many years, I am both stunned and disgusted by this map. It shows that most of them will not be within range of the one billion dollar taxpayer funded Why?Max network, yet many of them already have access to Telstra’s new NextG network. The government has been conned.

Hideki Suzuki
13 July 2007
3:42pm

Comment Permalink

Can we tone down the rhetoric a little bit?

Double Standards
13 July 2007
4:02pm

Comment Permalink

I live just outside Brisbane (20km) in a large urban development, I am am amazed that I can’t get signal. Telstra Coverage maps show that their NextG signal is obtainable for 30km’s in all directions around my house. After many many calls to technical support, I have now given up as their only option is to connect in another location. Before Telstra starts throwing stones at their competitors and the Government, they should first make sure their own coverage maps are half accurate. Telstra seems to be about winging and throwing tantrum's these days, and this has turned me away have 20years of patronage.

Briskey
13 July 2007
4:46pm

Comment Permalink

Help fix the problem, Vote Labor

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