NBN ‘most extreme’ broadband plan: EIU

Described as the most ‘extreme’, ‘expensive’, ‘anti competetitve’, ‘completely crazy’ and ranked eight of 13 nations on the EIU’s government broadband index.  You’d think with the billions of dollars it’s costing (and will cost into the future), the Government could have spent our money more wisely.  
An NBN that no-one wants, forcing Telstra to accept a deal they cannot refuse and to shut down competition.  Due for completion in 2021, Gillard will be long gone.  But our children will be paying the price for this expensive and unwanted telco white elephant.

THE Australian Shareholders Association has given its blessing to Telstra’s $11 billion deal to hand its fixed-line monopoly to the National Broadband Network because it believes the telco has “no other viable alternative”.  Telstra has also gained support from its independent expert, Grant Samuel, which sanctioned the deal by concluding the Telstra would be $4.7bn worse off if it tried to compete with the government-owned network. 
Waldo Ralph Emerson is often attributed of saying “Build a better mousetrap and the world will beat a path to your door”.

Customers’ decisions to buy depends on their perception of the product and its value.  That’s the golden rule in Marketing:  find out what people want, then develop the product accordingly.

In this NBN fiasco, the Government has done the complete opposite by developing an NBN that will end up being more expensive than what’s currently available and where the uptake is abysmal – even when they’re giving it away.  The Government have closed down the competition.  The ACCC should find that the NBN is anti-competition (how could they not?) and shelve this white elephant for good.


As the NBN uptake is so low, it appears the Australian people are not tempted by the promise of a Government-owned monopoly that will cost them more money to connect and end up more expensive than their current internet supplier.  And lock them into a technology that will be obsolete in a decade.
Maybe Malcolm Turnbull was correct when he said, “it’s like the telecommunications version of Cuba”.  With the carbon dioxide tax and other wasteful spending, the Gillard Government seems determined to remodel Australia into a country Castro would be proud to call home.

NBN ‘most extreme’ broadband plan: EIU

Ed Logue – AAP

October 10, 2011 – 4:34PM

Labor’s national broadband network (NBN) strategy has been branded the “most extreme” example of government intervention in high speed broadband planning in the world.A report by the UK-based Economist Intelligence Unit (EIU) makes the claim based on the amount of money being spent on the national network, saying such expenditure is linked to greater government intervention in owning and operating broadband networks, thereby reducing competition.Australia’s plan was also the most expensive in the world to implement, with the cost of providing broadband per household at $3455, followed by Gulf state of Qatar at $2299 and Greece at $1167.Opposition communications spokesman Malcolm Turnbull said Australia’s NBN was the “telecommunication’s version of Cuba” due to its reliance on the government to provide the necessary infrastructure.”Cuba is the last communist state … I stand corrected, there is North Korea too,” Mr Turnbull told reporters in Canberra on Monday.Mr Turnbull, who has just returned from Europe, said he had met people in the telecommunications industry who thought Australia’s NBN plan was “completely crazy“.The report by the EIU, a specialist publisher which is part of The Economist Group, was released on Monday.
Read the full article here:  http://news.smh.com.au/breaking-news-national/nbn-most-extreme-broadband-plan-eiu-20111010-1lh7i.html

Network cost to public ‘makes Greece look thrifty’

Annabel Hepworth and Ben Packham
From: The Australian
October 11, 2011 12:00AMA report by The Economist’s Intelligence Unit concludes that Australia had more government intervention in broadband planning than any other country — including China.The report — which Communications Minister Stephen Conroy last night dismissed as “right-wing dogma that struggles to get the facts right” — found that the project would soak up more public funds for each household covered than any other similar project.Total public funds pledged for the project were 6.34 per cent of the government’s yearly revenue, the report found.This equated to 249 per cent of yearly fixed-line telecommunications revenue in Australia — more than 2 1/2 times more than Greece.Read the full report here:  http://www.theaustralian.com.au/australian-it/network-cost-to-public-makes-greece-look-thrifty/story-e6frgakx-1226163382086

Consumer body hits gag on Optus in NBN deal

Annabel Hepworth
From: The Australian
October 11, 2011 12:00AM

A CONSUMER group whose funding is controlled by the federal government has attacked plans by the company rolling out the National Broadband Network to gag Optus from criticising the $36 billion project, warning that this will dampen competition.

The Australian Communications Consumer Action Network has said a controversial provision in the NBN Co’s $800 million deal with Optus, which stops the country’s second-largest telco from criticising the NBN for 15 years when marketing its own wireless services, would be bad for consumers.”Restraints on marketing practices that are part and parcel of a healthy competitive market would have a negative effect on consumers by dampening the competition that would otherwise occur,” ACCAN told a competition regulator review.The warning came as Australian Competition & Consumer Commission chairman Rod Sims yesterday raised concerns about the potential for competition to be distorted while the NBN is being rolled out.NBN Co has struck a deal with Optus to shore up traffic on the ultra-fast network, under which the company will migrate its hybrid fibre coaxial cable customers on to the NBN.Under the deal, Optus has agreed not to conduct a marketing campaign that is disparaging about the performance of the NBN in areas where Optus is shutting down its cable network, which passes 2.4 million homes.Telstra has signed a deal to transfer its fixed-line customers to the NBN, under which it has agreed not to promote wireless internet as a substitute for the NBN for 20 years.Read more here:  http://www.theaustralian.com.au/business/companies/consumer-body-hits-gag-on-optus-in-nbn-deal/story-fn91v9q3-1226163379228

One thought on “NBN ‘most extreme’ broadband plan: EIU

  1. Not being able to criticise will not really matter. If wireless products can be competitive (price and reliability) then all they have to do is say this is the cheapest service. People are not stupid. So the question is how much will it end up costing tax payers if this is the case?

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