Cath Hart | July 03, 2008
SEARCH giant Google has joined Australia's national broadband debate, telling the federal Government's expert panel that the provider of Australia's new high-speed internet network must not operate both the network and a retail broadband businesses.
In its submission to the federal Government's review of telecommunications regulations, Google said that either structural or functional separation would ensure ongoing competition on the new network, which will use a $4.7 billion tax payer contribution to deliver speeds of 12Mbps to 98 per cent of the population.A functionally or operationally separated operator would have separate retail, wholesale and network units that could be owned by the same entity, whereas structural separation, a tougher regulatory measure, would see the network owner forced to list the retail and network businesses as entirely separate business entities.
Google's head of government affairs and public policy for Australia and New Zealand, Carolyn Dalton, said yesterday that the winning bidder for the network should "offer services on a wholesale basis to retail competitors on non-discriminatory and equivalent terms as it offers them to its own retail operations, from the perspective of both price and non-price terms and conditions".
"Functional or structural separation of the network owner should be considered as options to ensure this," Ms Dalton said.
British Telecom backed the push for operational or functional separation, but Telstra dismissed calls "for operational, structural and ownership separation (as) a noisy, hollow distraction from the main game".
"All that presently stands between Australia and world-class broadband infrastructure is the current regulatory regime," Telstra said.
Optus and Terria both reiterated their arguments in support of structural separation.
The submissions were among more than 70 from ISPs, telcos, local councils and state governments received by Communications Minister Stephen Conroy's broadband expert panel as part of a regulatory review being held in tandem with the tender for the broadband contract.
Senator Conroy, who made the submissions public yesterday, said the submissions would also be available for companies bidding for the contract to consider as they crafted their proposals for the network.
In its submission, disability services group Vision Australia called on the federal Government to expand its suite of utility subsidies for pensioners to include broadband services as part of the rollout of its national high-speed internet network.
"We feel that access to affordable and technically usable broadband for people who are blind or have low vision is essential," spokesman Michael Simpson said.
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18 Comment(s)
Structural separation will simply mean that the Telstra planners I will have an extra meeting with the 'owners'. Telstra has had worse - a few years ago it was with mobiles and the 'dominant carrier' nonsense. That did nothing help, harm or hinder the mobile market. BTW has anybody asked how Telstra operate their network now? I know because I used to be one of the many people that now have that important responsibility - someone applies to use the cable and the request is planned accordingly. It makes no difference if the request comes from Telstra Mobiles, Optus, or the Civil Aviation Authority. The Telecommunications act 1997 has given power to ACCC to implement a queuing order to ensure that all applications are non-discriminatory. Telstra plans for the best use of the resources regardless of who made the request. The same non-discriminatory procedure can be applied to use of the NBN. Optus, iiNet, anyone, even you can apply, reserve a space in the queue, be reasonable with the build time and start your own ISP. If you do it right, like Optus do, you will have a return on your investment and be cost neutral in 30 days.
Dear Singapore Telecom, aka Optus, please build the most amazing broadband network the world has ever seen. Oh sorry, you don't know how and you can't afford it. Try this -ask Telstra to build it for you and ask the people of Australia to fund it. When you have finally built the thing, the ACCC will make you share it below cost.
Just quietly - I'm a tad suspicious that some of the comments on this page have been written by people on the Telstra payroll!! Either that, or they are incredibly gullible when it comes to spin! Get this structural separation over and done with - then the beast we've been battling for years is gone - and we can deal with the real issue with no more self-interested spin.
John of Beaumaris you must be a Telstra shareholder, either that or you live in an area highly serviced by Telstra. Read the comments here and everywhere else on the web and you will see that the negative feedback on Telstra is all justified and a vast majority is factual. Telstra have brought this on themself, or should I say that Sol has brought this on Telstra. Arrogant policies, poor customer service and staff lay-offs are all thanks to Sol and his amigos and the Telstra board. Looks like you are the only advocate here standing up for Telstra, what is that telling you John?
Isn't it funny that Google who recently signed a major application delivery agreement with Optus is now playing the same tune that Optus has been. I see this as just another political ploy by a stooge (or is that stoogle?) who sees money to be made by having Tierra build the network so they can have a larger Optus client base to sell their application platform to. Look closely enough and you can see the strings on all of those puppets.
I have a simple solution to all you telstra knockers optus ect ect ect but your money were you mouth is and build the bloody system!!!!!!
I have no problem with eithor Telstra or a 3rd party building and operating the FTTN network provided that every single operator pays the same fee for the same speed, service etc. With Telstra operating it, based on their existing ADSL prices, there is no way they will provide a port to themselves and others at the same price, thus I believe it needs a separate entity. If the Broadmand network was jointly owned and operated by a telstra spinoff, as well as groups like Terria, then fine as I believe that they would have a real reason to keep prices down to a reasonable level, not blindingly gouge people for profits and provide sub-par value for money like Telstra do now.
I have no problem with either Telstra or a 3rd party building and operating the FTTN network provided that every single operator pays the same fee for the same speed, service etc. With Telstra operating it, based on their existing ADSL prices, there is no way they will provide a port to themselves and others at the same price, thus I believe it needs a separate entity. If the Broadband network was jointly owned and operated by a Telstra spin-off, as well as groups like Terria, then fine as I believe that they would have a real reason to keep prices down to a reasonable level, not blindingly gouge people for profits and provide sub-par value for money like Telstra do now.
I'm glad Google has made this assertion. I have always believed there should be a government owned infrastructure which is then sold on to the end user suppliers. This should apply to all services like water, gas and electricity. I can understand why a Telstra or any other player would want it as it would give them an unequal edge on the other bidders. If we want as fair a playing field as possible this is the only way to proceed. I just hope government has the will power to go this way.
I'm glad Google has made this assertion. I have always believed there should be a government owned infrastructure which is then sold on to the end user suppliers. This should apply to all services like water, gas and electricity. I can understand why a Telstra or any other player would want it as it would give them an unequal edge on the other bidders. If we want as fair a playing field as possible this is the only way to proceed. I just hope government has the will power to go this way.
What you see is a submission of commercial interests not public interests. Telstra is the only telco to deliver a world class profitable network .
Fred, not sure if you have been watching the telco environment for any of the past 15 years. When Telstra say it will be "open access" they are lying! They have never provided open access, in spite of laws and regulation that require it. The numerous times they have been hauled over the coals for breaking the rules is a sign of what they think true competition is. Wake up to what is really going on! If even Google, BT (and I am sure many others without a direct interest in who owns the network) are saying that it is bad to hand it to Telstra and just trust them, then that is a very clear sign!
I will never buy a telstra product, i dont trust them and i never will, they are money hungry pigs. when are we going to see a network infrastructure like america has, with no download caps, every time you talk about cap limit to an american they say what is that, Australia seems to be the only place in the world that has a limit on how much data you get access to. since telstra are the worst in this area i will never use them. even if they were the only carrier for internet i would rather not have internet than to sing up to one of their plans.
It seems once again Telstra is out of touch with reality, everyone apart from Telstra see the unworkable conflict of interest that would exist if some sort of separation isn't enforced. Personally,I prefer structural separation, with a chain saw! (sorry Kev, a blow torch won't do it this time).
"British Telecom backed the push for operational or functional separation, but Telstra dismissed calls "for operational, structural and ownership separation (as) a noisy, hollow distraction from the main game"." Of course Telstra dismiss it, because if it happened they would not be able to excessively extort the massive profits out of people like they have been allowed to do for decades with everything else, and will no doubt try to continue to do other areas. There should be no Telstra wholesale, that should return to complete govt owned and controlled, with Telstra retail etc getting the same deal as Optus, AAPT, or Ma & Pa businesses who want to access copper and ports and so on.. then and only then will there be fair and REAL competition in telecoms/Internet in this country.
What we need for the new NBN is "True competition". Not the over regulated stuff OPTUS has come to love under the previous Government. Separating Telstra would only be beneficial to Singtel/Optus and would discourage investment and hinder the building of this new NBN. Ultimately this will harm all Australians. Telstra has been quoted as saying the new network will be "open access" so I fail to see why they Singtel/Optus are scared of "True Competition"
I am glad to see Google state the obvious. I have said the same thing since Telstra was being sold off. I didn't trust the last government to get free trade and competition right and it is being echoed by those who have lost out badly to Telstra. Australia has been a big loser thanks to the short-sightedness of the Howard government. I hope Conroy listens and acts appropriately for the good of the nation.
Thank you, Google.
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