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Australians want a Telstra NBN



Topic: Broadband , Telstra

Tags:    high-speed-broadband  national-broadband-network  telstra  terria


Close-up of fibre optic glass - Illustrates perspective of size.

Just released research found that Australians regarded the NBN as a critical piece of national infrastructure vital to the nation’s economic progress in the 21st century; respondent want it to be the best and are not prepared to make compromises, insisting it be built using the latest state-of-the-art technology.

The research conducted by Labor pollsters, UMR Research, involved a telephone survey of 1200 Australian consumers.

The survey findings showed strong support for Telstra building and operating the NBN, the major reasons being: Telstra’s Australian background and heritage; its financial capacity to build the network; and importantly the fact that it already has the runs on the board in terms of advanced technology projects.

The opposition Terria consortium is almost totally unknown and its capabilities and track record a complete mystery to most Australians.

Significantly, Australians strongly embrace the open access regime that Telstra has agreed, that companies gain equivalent access to the network and the operating regime is entrenched in law and administered by the ACCC. When informed of this Australians become even more supportive of Telstra building and operating the NBN.

Key Findings

  • Australians regard the NBN as a vital part of the nation's future infrastructure, critical to the country being economically competitive in the 21st century. Access to high speed broadband infrastructure is seen as vital to the nation's economic prosperity.
  • While a majority of Australians (56%) are aware that the Federal government has called for proposals to construct and operate a national broadband network, knowledge of the details and indeed the capabilities of this new piece of national infrastructure are not yet well known nor understood.  Despite this there is a strong view that Australians should not accept anything but the best, when asked most say "Australia can't afford to make do with the second-best, we need the world's best network using the leading technologies".
  • Australians know enough about the NBN to appreciate that the benefits will be very widespread. They expect virtually every group in society to benefit: business, those in regional Australia, tele-workers and people working from home, farmers, families, young people even pensioners and older folk.
  • The public has a very firm idea on who they think should build and operate the NBN. There is a very strong support for Telstra building and operating the NBN. Nearly two thirds (66%) support Telstra both building and operating the NBN and only a relatively small proportion (23%) are against the idea.
  • The opposition Terria consortium is a complete unknown to the Australian public. Only a tiny (12%) proportion of the population has even heard of the consortium and a massive 88% don't know anything about it.
  • The major drivers supporting Telstra's bid to build the NBN can be summarised  as:
    • The economic benefits deriving from Telstra, a large Australian company employing many thousands of people with 1.4 million shareholders.
    • A national security perspective;  it is seen as much better to have an Australian owned company in charge of critical pieces of the nation's communications infrastructure.
    • Telstra is a proven technology leader with the runs on the board
    • In these troubled financial times only Telstra has the capability to raise the funds required.
  • A major concern among some commentators is a perception that Telstra enjoys a monopoly position in the Australian market and building and operating the NBN will further entrench its position. The research shows that this is not a view held by the public. Most Australians, a majority, (54%) believe that Telstra has significant competition from many companies including both Vodafone and Optus competing across the board.
  • And while there is a superficial attractiveness  to the concept of structural separation, the research demonstrates that when Australians gain an understanding of its lack of success in overseas markets, any support that existed collapses with only a small proportion (24%) supporting the concept while the majority (56%) reject it.
  • There is incredibly strong support amongst Australians (84%)  for an open access regime providing equivalent access to other companies to use the NBN with rules legislated for by the Federal government and policed by the ACCC. Indeed when respondents are told that Telstra has agreed to this support further increases to 74% with only a tiny (13%) minority opposing Telstra building and operating the NBN.
  • Also, finally the proposals put by the Terria consortium that it should have a monopoly if it wins the tender to operate the NBN worries a great deal of people and is rejected by over three quarters of the public.

 In the media:

Comments

Vasso Massonic
757 comments

25 November 2008
7:09AM

Comment Permalink

TERRiA's detailed bid proposals revealed last week do not even comply with Senator Conroy's agenda.

"It costed the network at about $15 billion and said this would buy 75,224 nodes, two satellites, 1360 new wireless base stations and 100,000km of fibre."

According to the Minister...... "Building a digital nation requires a broadband foundation"..... and not a not a packet of Liquorice allsorts.

Courtesy: Australian IT specifically allowing sharing of this Super Blog by Senator Conroy.

Building a digital nation requires a broadband foundation


Stephen Conroy, Minister for Broadband, Communications and the Digital Economy | November 24, 2008

INVESTMENT in key infrastructure is a first order economic policy priority for the Rudd Government.
Prescribing specific regulatory settings at the start of the NBN process would have unnecessarily narrowed the scope for innovation, says Stephen Conroy

The National Broadband Network (NBN) is one of the largest infrastructure investments undertaken by any Australian Government and is a vital building block for our future economic productivity and prosperity.

Broadband is essential enabling infrastructure for all sectors of the economy. Throughout the world, it is already helping governments, businesses and citizens do what they have always done more efficiently – and helping them to do things that they have never done before. This is the digital economy.

In Australia, the quality of broadband infrastructure will help shape our future living standards, international competitive standing, the vitality of our regions and our ability to respond to climate change.

Australia's future depends on our ability to harness the potential of broadband and the benefits it will bring. Yet after 11 years and 18 failed plans under the Howard Government, our broadband infrastructure lags behind our international competitors.

The latest OECD figures for its 30 member countries rank Australia 16th on penetration levels and 20th on cheapest subscription prices.

Further, Telstra admitted in July this year that because of legacy network limitations, two thirds of metropolitan areas and more than half of our regional population cannot access broadband speeds of 12Mbps per second. Similar figures were reported by Terria last year.

This is consistent with the fact that every month, thousands of people contact my Department to complain they cannot access high-speed broadband, including in metropolitan areas.

Australian businesses are forthright in their call for better, more affordable broadband. Eighty-five per cent of respondents to a recent Australian Industry Group CEO survey said high-speed broadband is highly important to their business, while two-thirds said they would benefit greatly from a faster network. Indeed, the CEO of the AI Group remarked that "any political party that doesn't understand the value of this investment ought to get themselves into the 21st century."

Meanwhile, the Australian Local Government Association says robust investment in broadband is essential to future economic growth, especially in our regions. This view is shared by State and Territory Governments, the Glasson Regional Telecommunications Independent Review Committee, as well as many players within the telecommunications sector itself.

The need for the Government to take a leadership role in this important area of economic infrastructure is clear. Indeed, we are not the only national Government to reach this view.

We are now well into the NBN process. The Government has committed up to $4.7 billion for the project and has said it will consider any necessary regulatory changes.

There has been robust public debate on the sidelines, particularly in the area of future regulatory settings. When we put $4.7 billion on the table to invest, we anticipated, and encouraged, this debate. We have not been disappointed.

Continued Page 2


Vasso Massonic
757 comments

25 November 2008
7:12AM

Comment Permalink

The Government is focused on outcomes in the NBN process, not regulatory totems.

We remain open-minded on the regulatory solutions that may achieve our stated objectives, and are needed to provide investment certainty to all players in the market.

Our view is that prescribing specific regulatory settings at the start of this process would have unnecessarily narrowed the scope for innovation and competitive tension.

We have put forward 18 clear objectives in the Request for Proposals.

These include, a minimum 12Mbps to 98 per cent of homes and businesses, and allowing consumers the choice to run applications, use services and connect devices at affordable prices.

They also include fibre-to-the-node or fibre-to-the-premises network architecture, and provision for competition and equivalency through open access arrangements.

It is up to proponents to demonstrate how best to meet – or exceed – our objectives within the competitive process.

Australia needs a competitive, innovative broadband market. We need national infrastructure and regulatory settings that allow us to compete and excel in the digital economy.

We look forward to receiving proposals for Australia's broadband future on November 26.

The Super Blog will have the unedited opinions of leading players in the $15 billion plus NBN project. It will run over a few days and feature leaders from the telco and government community. Shadow Communications minister Nick Minchin kicks-off the series; his counterpart in government, Stephen Conroy is the final blogger. "


In my opinion the Telstra board should consider submiiting a conditional bid in terms of the Minister's latest directive.


Adam Egg
6 comments

25 November 2008
5:02PM

Comment Permalink

This is a disturbing exhibition of bias and cash for comment. This 'recently released' survey is almost a year old and is filled to the brim with pro Telstra drivel. Thank goodness it wont help Telstras cause one iota, the Government and the public are well and truly onto Telstras trickery. Less than 24 hours from now, Telstra will do the biggest backflip yet seen, and submit their NBN proposal.


Vasso Massonic
757 comments

26 November 2008
7:16AM

Comment Permalink

Adam, no back flip simply rationale. Senator Conroy is, clearly, conciliatory in his directive and doesn't seem to fancy Liquorice allsorts. No one expects an executive Government to back down but there is always the other way... "The source said there was also no intention within the Government to split Telstra anyway, but the option would stay on the table regardless."...link:

http://business.theage.com.au/business/telstra-in-standoff-over-broadband-bid-20081125-6hir.html

You obviously have your own agenda.



Sydney Lawrence
225 comments

26 November 2008
7:39AM

Comment Permalink

Adam while commenter's should probably not respond to the writings of the agent provocateur your Post was so full of propaganda that it requires exposure.

"Bias and cash for comment" Adam NWAT is openly a Telstra public service. Concerning "cash for comment" I don't know about others but I certainly have not received any "cash".

Your "drivel" that the Australian Government and people are awake to Telstra trickery is serious because Adam your mob know more than most about "trickery".

Telstra will probably bid and it won,t be a "backflip" but a sensible, serious and professional bid with all i's dotted and t's crossed together with full funding details. Diametrically opposed to yours.


Vasso Massonic
757 comments

26 November 2008
10:03AM

Comment Permalink

Sydney, Chicken or the egg?...... If Telstra submits a conditional bid objecting to a split of the company. They in fact, follow TERRiA's conditional bid demanding Telstra by split.

Egg, can't figure that one out!


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