Telcos oppose Telstra role in Coalition network plan
The Competitive Carriers' Coalition attacked the opposition's alternative broadband rollout plan after its communications spokesman, Malcolm Turnbull, said he would not prioritise areas covered by Telstra's existing HFC - or TV cable - if elected.
"These comments ignore the reality that such a proposal would mean that for 30 per cent of the population there would be no effective competitive broadband market," the chairman of the alliance, Matt Healy, said.
Carriers such as Vodafone and iiNet are worried about the prospect of having to deal with Telstra over the network access issue, which has been a long-standing bone of contention between Telstra and its smaller rivals.
However, Mr Turnbull denied the allegation that the Coalition would continue to use Telstra's HFC network indefinitely.
"I did not say we would never overbuild the Telstra HFC areas and our plans assume that in due course the national broadband network would be extended into them," he said.
He hit back at the carriers and said while their goal of replacing Telstra's network with a government-owned wholesale carrier was "reasonable", they should be mindful of taxpayers' money.
The cable can carry data faster than what is available over copper lines. However, it is unclear if Telstra would have to give competitors access to the cable under the Coalition's proposal or could keep its monopoly. Optus has a similar cable network that reaches about 2 million households in roughly the same areas.
In a speech to the Committee for Economic Development of Australia on Friday, the Opposition Leader, Tony Abbott, said if the Coalition scrapped the national broadband network "in its current form", then "that's about $50 billion less that the Commonwealth will need to borrow".
When asked to substantiate the figure, given that the Coalition has promised it will still build a national broadband network - albeit one using cheaper fibre-to-the-node technology - Mr Abbott's office declined to say how the claimed savings would be made.
Frequently Asked Questions about this Article…
The Coalition’s alternative broadband plan would initially rely on existing networks in some areas, which has been interpreted as continued use of Telstra’s HFC (TV cable) network rather than immediate overbuild. Malcolm Turnbull said he would not prioritise areas already covered by Telstra’s HFC and that the plan assumes the national broadband network (NBN) would be extended into those areas “in due course,” using cheaper fibre-to-the-node (FTTN) technology.
Smaller carriers including Vodafone and iiNet fear they would have to negotiate access with Telstra, resurrecting a long-standing access dispute. The Competitive Carriers’ Coalition warned that relying on Telstra’s HFC could leave about 30% of the population without an effective competitive broadband market.
The alliance attacked the Coalition’s proposal, saying any plan that continued to use Telstra’s HFC would be “doomed to fail” and could result in roughly 30% of the population having no effective competitive broadband market, according to chairman Matt Healy.
The article says it’s unclear. It notes the cable can carry data faster than copper, but it’s not specified whether Telstra would be obliged to provide access to rivals under the Coalition’s approach or could retain a monopoly in those areas.
The article states Telstra’s HFC (TV cable) can carry data faster than what is available over copper lines, making it a higher-capacity medium for broadband delivery.
Yes. Optus also operates a cable network that reaches roughly 2 million households in much the same areas as Telstra’s HFC, according to the article.
Turnbull denied the Coalition would continue to use Telstra’s HFC indefinitely, saying he did not rule out overbuilding those areas eventually and that their plans assume the NBN would be extended into HFC areas in due course. He also warned carriers they should consider taxpayers’ money when proposing a government-owned wholesale replacement.
Tony Abbott said that scrapping the NBN “in its current form” would mean about $50 billion less the Commonwealth would need to borrow. The article notes his office declined to detail how that claimed saving would be achieved, and the Coalition still proposes building an NBN using cheaper FTTN technology.
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