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Coalition defends plan

The federal opposition has rejected suggestions that Telstra has it over a barrel because it needs the telco's copper wires for its alternative national broadband network. The Coalition released its NBN policy last week, promising to deliver a cheaper version than Labor's $37.4 billion fibre optic network, but with slower internet download speeds.
By · 15 Apr 2013
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15 Apr 2013
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The federal opposition has rejected suggestions that Telstra has it over a barrel because it needs the telco's copper wires for its alternative national broadband network. The Coalition released its NBN policy last week, promising to deliver a cheaper version than Labor's $37.4 billion fibre optic network, but with slower internet download speeds.
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Frequently Asked Questions about this Article…

The Coalition rejected suggestions that Telstra "has it over a barrel" because the Opposition needs Telstra's copper wires for its alternative national broadband network, saying Telstra does not have undue leverage in the plan.

The Coalition released an NBN policy promising a cheaper alternative to Labor's plan. Unlike Labor's $37.4 billion fibre optic network, the Coalition's proposal would cost less but deliver slower internet download speeds.

Labor's proposed national broadband network is described in the article as a $37.4 billion fibre optic network.

The article reports suggestions that the Coalition would need Telstra's copper wires for its alternative NBN, but it also says the Coalition has rejected claims that this gives Telstra excessive leverage.

The key trade-off highlighted is cost versus speed: the Coalition's cheaper version would likely reduce upfront spending compared with Labor's $37.4 billion fibre optic network, but it would provide slower internet download speeds.

Investors should watch because government policy choices—such as whether to pursue a cheaper, slower NBN or a more expensive fibre build—can affect companies involved in national broadband infrastructure and the commercial arrangements around Telstra's copper network.

No. The article states the federal Opposition rejected suggestions that Telstra has it over a barrel; it does not say Telstra is being forced into a deal or receiving special treatment.

According to the article, slower download speeds are a defining feature of the Coalition's cheaper NBN option compared with Labor's $37.4 billion fibre plan, so investors should consider how differences in network performance versus cost could influence adoption, public debate and future policy direction.