Showing posts with label Stephen Conroy. Show all posts
Showing posts with label Stephen Conroy. Show all posts
The National Broadband Network WAS a great policy. When it was announced in March 2007, I was on a national tour presenting on the importance of FTTH as a national infrastructure. I was quite proud to be one of the people responsible for convincing the Minister to head down the path of a National Broadband Network. However that pride has now turned to shame as we see NBNco's implementation of a great policy turn into a train wreck which is happening in slow motion before our eyes. But like many of the policies of this Labor Government, they have it great on paper, but fail to deliver on their promises.
Boy, a big opening I suppose, but its one I truly believe - The NBN in my opinion is a complete disaster and I believe Mike Quigley and a few senior personnel are entirely responsible for the situation. Don't get me wrong, I have a lot of respect for a number of people within NBNco - I don't need to mention them they know who they are - but most are completely out of their depth in building a Fibre to the Home Access network.
There are so many things wrong with NBNco's FTTH implementation I don't know were to start, and I could be discussing this for weeks. So rather than writing it all in one article, I will over the coming weeks focus onto a single point each week and discuss where in my opinion they have gone wrong and why.
The biggest issue for NBNco is an inherit self belief by some within the organisation - one might say they drink their own bath water - which in my opinion has lead to a high level of arrogance within the organisation.
To give you several examples;
The first is a statement made by Peter Ferris, GM of Design & Planning, at a presentation to industry late last year in Melbourne, during which he claimed the market had been stating how "elegant" the NBN architecture was and that he was so "proud" because it was "his design". The reality is that many in the industry have quite the opposite view - they are just too scared to say it publicly for fear of retribution by NBNco.
I have had many discussions with vendors, construction companies, consulting engineers and similar people who have much more experience than those at NBNco designing fibre based access networks and they have all had the same opinion; they cannot comprehend the over engineering within the network and too many staff at NBNco don't wish to listen to expert advice. NBNco is not building the network to world best practice or a common standard, they are re-inventing just about everything.
Another example was back in April when Director of Greenfields at NBNco, Archie Wilson, stated to the Sydney Morning Herald that some developers "failed to follow the proper process". Sorry to burst your bubble Mr Wilson, but NBNco is providing a government funded infrastructure to developers and in that role NBNco should be first getting to understand how developers work and fit into their needs and processes, not the other way around.
For the past 40+ years, developers have simply gone to the PMG/Telecom/Telstra and got everything done for them; now there has been the biggest reform in telecommunications in Australia and the developers are confused about what to do. This is not the developers fault, in my opinion this is arrogance and mismanagement on the part of NBNco for failing to educate the industry on these massive changes. But then Mr Wilson would not understand how telecommunication construction works in the new housing projects because (it is my understanding) he has no experience in the carrier world, no construction experience nor any greenfield development experience - he came from Cisco's enterprise business, a great choice for this critical position!
Time and again we see examples of NBNco ignoring industry advice particularly from Communications Alliance - the peak industry body for setting telecommunication standards. A good example has been a number of "debates" with NBNco staff in some of the working groups about the provision of express conduits (typically 4 x 100mm ducts) in certain sections of the network built within a new estate. NBNco refuses to follow that recommendation by industry - thus effectively preventing carriers such as Telstra, Optus, Vodafone or others from expanding their network (particularly for Mobile base stations) through these new estates. In the past Telstra and others (like Opticomm) would build spare capacity into the conduct infrastructure for duct sharing. NBNco like it or not you are the new national infrastructure carrier and you are required to provide infrastructure for now and the future for the needs of all carriers not just yourself. Even Telstra was never as arrogant as this even during the "Trujillo Era" - its like a time warp back to the PMG of the 1970's - extremely monopolistic and setting their own standards.
In my next article I will go into the detail of the network design highlighting a number of its "issues" and how the design is grossly over engineered. In my opinion, its for this reason (amoung others) that the construction tenderers did not meet NBNco's price expectations, not because they failed to deliver "fair value". The constructors delivered a price based on what NBNco wished built and how they wanted it built, it was NBNco's poor judgement in estimating the initial network costs and then designing something which was not based on those estimates - again arrogance at its best.
Boy, a big opening I suppose, but its one I truly believe - The NBN in my opinion is a complete disaster and I believe Mike Quigley and a few senior personnel are entirely responsible for the situation. Don't get me wrong, I have a lot of respect for a number of people within NBNco - I don't need to mention them they know who they are - but most are completely out of their depth in building a Fibre to the Home Access network.
There are so many things wrong with NBNco's FTTH implementation I don't know were to start, and I could be discussing this for weeks. So rather than writing it all in one article, I will over the coming weeks focus onto a single point each week and discuss where in my opinion they have gone wrong and why.
The biggest issue for NBNco is an inherit self belief by some within the organisation - one might say they drink their own bath water - which in my opinion has lead to a high level of arrogance within the organisation.
To give you several examples;
The first is a statement made by Peter Ferris, GM of Design & Planning, at a presentation to industry late last year in Melbourne, during which he claimed the market had been stating how "elegant" the NBN architecture was and that he was so "proud" because it was "his design". The reality is that many in the industry have quite the opposite view - they are just too scared to say it publicly for fear of retribution by NBNco.
I have had many discussions with vendors, construction companies, consulting engineers and similar people who have much more experience than those at NBNco designing fibre based access networks and they have all had the same opinion; they cannot comprehend the over engineering within the network and too many staff at NBNco don't wish to listen to expert advice. NBNco is not building the network to world best practice or a common standard, they are re-inventing just about everything.
Another example was back in April when Director of Greenfields at NBNco, Archie Wilson, stated to the Sydney Morning Herald that some developers "failed to follow the proper process". Sorry to burst your bubble Mr Wilson, but NBNco is providing a government funded infrastructure to developers and in that role NBNco should be first getting to understand how developers work and fit into their needs and processes, not the other way around.
For the past 40+ years, developers have simply gone to the PMG/Telecom/Telstra and got everything done for them; now there has been the biggest reform in telecommunications in Australia and the developers are confused about what to do. This is not the developers fault, in my opinion this is arrogance and mismanagement on the part of NBNco for failing to educate the industry on these massive changes. But then Mr Wilson would not understand how telecommunication construction works in the new housing projects because (it is my understanding) he has no experience in the carrier world, no construction experience nor any greenfield development experience - he came from Cisco's enterprise business, a great choice for this critical position!
Time and again we see examples of NBNco ignoring industry advice particularly from Communications Alliance - the peak industry body for setting telecommunication standards. A good example has been a number of "debates" with NBNco staff in some of the working groups about the provision of express conduits (typically 4 x 100mm ducts) in certain sections of the network built within a new estate. NBNco refuses to follow that recommendation by industry - thus effectively preventing carriers such as Telstra, Optus, Vodafone or others from expanding their network (particularly for Mobile base stations) through these new estates. In the past Telstra and others (like Opticomm) would build spare capacity into the conduct infrastructure for duct sharing. NBNco like it or not you are the new national infrastructure carrier and you are required to provide infrastructure for now and the future for the needs of all carriers not just yourself. Even Telstra was never as arrogant as this even during the "Trujillo Era" - its like a time warp back to the PMG of the 1970's - extremely monopolistic and setting their own standards.
In my next article I will go into the detail of the network design highlighting a number of its "issues" and how the design is grossly over engineered. In my opinion, its for this reason (amoung others) that the construction tenderers did not meet NBNco's price expectations, not because they failed to deliver "fair value". The constructors delivered a price based on what NBNco wished built and how they wanted it built, it was NBNco's poor judgement in estimating the initial network costs and then designing something which was not based on those estimates - again arrogance at its best.
They say a week is a long time in politics; and so too in the Australian telecommunications industry.
On Monday, Don McGauchie confirmed he has formally begun the process of finding a replacement for Sol Trujilo. With the departure last year of Phil Burgers, then recently his right hand man in Greg Wynn, the time has come for the last of the three Amgios to also call it a day. Perhaps with his departure some compromise can be achieved with a new direction for Australia's incumbent telco.
The one thing that will be Trujillo's legacy at Telstra was his almost relentless attack on the Government and ACCC over regulation of the telecommunications industry and the company he lead in particular.
Tuesday saw Optus mention it would consider an alliance with the two other national biggers to build the federal government's national broadband network. However the group may have to wait for some time because of the constraints under the RFP guidelines. A joint venture between the three parties would deliver the best outcome for Australia. Axia could build their proposed backhaul network, Optus offer the access network (which they already have a good coverage with the ULL, HFC, Mobile and Satellite and Acacia the network operator delivering truely Open Access to the market.
Wednesday saw our Communications Minister reiterate that is was the Government's "ambition" to sign a contract by the end of March, after a prolonged attack be Senator Minchin in which he repeatedly questioned Minister Conroy when the Federal Government would be ready to sign a contract with a successful tenderer.
It has previously been reported in many circles - including on this blog - that Optus, Axia and Acacia may seek regulatory guarantees before signing a contract with the Government. Considering the upper house is still controlled by the opposition parties who so far have been vehemently opposed to the National Broadband Network, I don't think anyone will be signing a $10b contract based on promises which the Government cannot guarantee will be passed.
On Thursday, Senator Nick Minchin - Shadow communications minister - introduced a motion which would require the government to immediately furnish the Expert Group's report to the Senate. After a compromise was reached with Family First Senator Stephen Fielding, the motion was passed requiring the report to instead be published the day after the NBN tender is awarded.
Minchin said Conroy had failed to deliver on claims that the NBN process would be open and transparent. In a statement Minchin said, “While I maintain this advice should be publicly released before a successful tenderer is chosen, the Senate has agreed that at the very least they should be tabled immediately after a winning bid is announced”, further adding “Public scrutiny of this crucial advice to the government will enable a proper assessment of whether Labor is acting truly in the national interest and not purely in its short-term political interest.”
On Monday, Don McGauchie confirmed he has formally begun the process of finding a replacement for Sol Trujilo. With the departure last year of Phil Burgers, then recently his right hand man in Greg Wynn, the time has come for the last of the three Amgios to also call it a day. Perhaps with his departure some compromise can be achieved with a new direction for Australia's incumbent telco.
The one thing that will be Trujillo's legacy at Telstra was his almost relentless attack on the Government and ACCC over regulation of the telecommunications industry and the company he lead in particular.
Tuesday saw Optus mention it would consider an alliance with the two other national biggers to build the federal government's national broadband network. However the group may have to wait for some time because of the constraints under the RFP guidelines. A joint venture between the three parties would deliver the best outcome for Australia. Axia could build their proposed backhaul network, Optus offer the access network (which they already have a good coverage with the ULL, HFC, Mobile and Satellite and Acacia the network operator delivering truely Open Access to the market.
Wednesday saw our Communications Minister reiterate that is was the Government's "ambition" to sign a contract by the end of March, after a prolonged attack be Senator Minchin in which he repeatedly questioned Minister Conroy when the Federal Government would be ready to sign a contract with a successful tenderer.
It has previously been reported in many circles - including on this blog - that Optus, Axia and Acacia may seek regulatory guarantees before signing a contract with the Government. Considering the upper house is still controlled by the opposition parties who so far have been vehemently opposed to the National Broadband Network, I don't think anyone will be signing a $10b contract based on promises which the Government cannot guarantee will be passed.
On Thursday, Senator Nick Minchin - Shadow communications minister - introduced a motion which would require the government to immediately furnish the Expert Group's report to the Senate. After a compromise was reached with Family First Senator Stephen Fielding, the motion was passed requiring the report to instead be published the day after the NBN tender is awarded.
Minchin said Conroy had failed to deliver on claims that the NBN process would be open and transparent. In a statement Minchin said, “While I maintain this advice should be publicly released before a successful tenderer is chosen, the Senate has agreed that at the very least they should be tabled immediately after a winning bid is announced”, further adding “Public scrutiny of this crucial advice to the government will enable a proper assessment of whether Labor is acting truly in the national interest and not purely in its short-term political interest.”
Press Release: 22 January 2009.
The Minister for Broadband, Communications and Digital Economy, Senator Stephen Conroy today announced that the final report from the Panel of Experts on submissions to the National Broadband Network process has been received.
The Minister stated that the receipt of this report marks a significant milestone in the NBN process: "The Government is now considering the Panel of Experts' report."
"Until this point, the evaluation of proposals received in the National Broadband Network process has proceeded at arm's length from the Government."
"The Government had not seen the contents of any proposal, nor had it received detailed briefings on any proposals from the Panel of Experts."
"The Government will give this serious and detailed report careful consideration."
The Minister emphasised that while the Government had now received the final report of the Panel of Experts, the NBN process and associated probity requirements remained active.
The disclosure of the contents of the Panel of Experts' report before the completion of the process, particularly any negotiation phase, has the potential to prejudice the outcome of the process. As such, the Government will not be commenting on the contents of the report.
The Minister also took the opportunity to congratulate the Panel of Experts for their contribution to the NBN process: "I would like to thank the members of the Panel of Experts for their hard work."
"The Panel has made an invaluable contribution to the realisation of the Government's commitment to the roll out of the National Broadband Network."
The Minister also acknowledged the important contribution to the process by the Australian Competition and Consumer Commission which had provided its own report as input to the Panel's consideration.
In a statement to the ASX this morning, Telstra has been informed by the Commonwealth government it has excluded them from the National Broadband Network request for proposals evalaution process.
Telstra's Chairman, Donald McGauchie said "The decision to exclude us from the RFP is the Commonwealth's decision to make. But Telstra is the only company to have submitted a proposal with a real financial commitment - of $5 billion. And Telstra is the only company with the existing network, technical know-how, world-leading vendor, skilled workforce, establish wholesale systems and proven track record of building world-class networks."
While Telstra certainly has the existing network and a proven track record of building world class networks such as NextG, they are not the only ones with the technical know-how to deliver a National Broadband Network. I would suggest the other bidders have people just as experienced and capable of building this network as anyone within Telstra. As for the comment regarding "the world leading vendor" this is a slight on companies like NEC, NokiaSiemens and Ericsson (among others) who are just as capable - if not more - in delivering this network as Alcatel (Telstra's preferred vendor).
The skilled workforce McGauchie claims to have is not even their own. Much of the field work for the NBN roll out would have been outsourced to companies like Silcar, Visionstream, ServiceStream and Transfield who in turn use sub-contractors. These companies currently provide Telstra's hands and feet on the ground, it not an internalised workforce and has not been so for many years. As there is no exclusivity or control, if Telstra doesn't have the build these companies or even the sub-contractors will go and work for the company that does.
The telco's submission was rejected from the evaluation process after its 13-page non-compliant bid did not meet requirements to include small to medium enterprises (SMEs) in the construction of the NBN. The office of Communications Minister Stephen Conroy confirmed the telco was out of the running from the bidding process and said the minister will hold a press briefing at 2.30 this afternoon to discuss the issue.
Local telecommunications analyst Paul Budde said the government was forced to ban Telstra to maintain the integrity of the NBN process. "Conroy just had to say 'enough is enough'. He couldn't take Telstra's bullying and so they were banned from the bid".
I'll finish by giving a big wrap to Stephen Conroy and the expert panel for having the strength to stand up to Telstra's arrogance and bullying. Perhaps now we can get on with delivering a world class network that Australia needs without the shackles of incumbency.
Telstra's Chairman, Donald McGauchie said "The decision to exclude us from the RFP is the Commonwealth's decision to make. But Telstra is the only company to have submitted a proposal with a real financial commitment - of $5 billion. And Telstra is the only company with the existing network, technical know-how, world-leading vendor, skilled workforce, establish wholesale systems and proven track record of building world-class networks."
While Telstra certainly has the existing network and a proven track record of building world class networks such as NextG, they are not the only ones with the technical know-how to deliver a National Broadband Network. I would suggest the other bidders have people just as experienced and capable of building this network as anyone within Telstra. As for the comment regarding "the world leading vendor" this is a slight on companies like NEC, NokiaSiemens and Ericsson (among others) who are just as capable - if not more - in delivering this network as Alcatel (Telstra's preferred vendor).
The skilled workforce McGauchie claims to have is not even their own. Much of the field work for the NBN roll out would have been outsourced to companies like Silcar, Visionstream, ServiceStream and Transfield who in turn use sub-contractors. These companies currently provide Telstra's hands and feet on the ground, it not an internalised workforce and has not been so for many years. As there is no exclusivity or control, if Telstra doesn't have the build these companies or even the sub-contractors will go and work for the company that does.
The telco's submission was rejected from the evaluation process after its 13-page non-compliant bid did not meet requirements to include small to medium enterprises (SMEs) in the construction of the NBN. The office of Communications Minister Stephen Conroy confirmed the telco was out of the running from the bidding process and said the minister will hold a press briefing at 2.30 this afternoon to discuss the issue.
Local telecommunications analyst Paul Budde said the government was forced to ban Telstra to maintain the integrity of the NBN process. "Conroy just had to say 'enough is enough'. He couldn't take Telstra's bullying and so they were banned from the bid".
I'll finish by giving a big wrap to Stephen Conroy and the expert panel for having the strength to stand up to Telstra's arrogance and bullying. Perhaps now we can get on with delivering a world class network that Australia needs without the shackles of incumbency.
Alan Kohler from Inside Business interviewed Communications Minister, Senator Conroy on Sunday in relation to the National Broadband Network. Senator Conroy had some interesting statements one of which Kohler picked up on in regards to the Expert panel recommendations. Conroy said "They [expert panel] could say Minister, there is one cracker of a bid, sign up now. It could say look, there's a couple of bids that are worthwhile, it could say none of the proposals are worthwhile".
Kohler pounced on this asking what happens if they say none of them are worthwhile? To which the Minister started to backpeddle quickly. Is the Minister admitting this whole process may end up in the bin?
Video of the interview
Transcript of the interview
Kohler pounced on this asking what happens if they say none of them are worthwhile? To which the Minister started to backpeddle quickly. Is the Minister admitting this whole process may end up in the bin?
Video of the interview
Transcript of the interview
During a media conference late Wednesday afternoon, and under intense scrutiny from a number of reporters, Senator Conroy conceeded there is no guarantee that the National Broadband Network will cover the 98 percent of households as promised in their election promise back in March 2007.
In a significant backflip from previous statements over the past 12 months, he described the 98% as "the objective" and eventually conceded that it could not be guaranteed.
Many telecom experts - including myself - have cast doubt that it will be delivered. Guy Cranswick, an analyst at IBRS, said it is "unlikely that the actual network will actually deliver what was promised, in reach or speed. That is a problem that could have been dealt with by stronger policy planning at the outset."
The policy should have been more specific detailing a minimum of 100Mbps to 80% of households and 20Mbps to the next 9% of homes. This would have represented the top 50 cities in Australia with a population base over 25,000, and provided via a mix of FTTH and high density FTTN using VDSL2+. The next 5% could have been serviced with a combination of exchange based ADSL2+ and wireless technologies such as HSPA, LTE or WiMAX. The remaining 5% the remote and regional areas could then be serviced with Satellite. But the formulation of their policy was ill advised with conflicting information coming from multiple sources.
Conroy went on to say "It's our election commitment to deliver 12 megabits to 98 percent of Australians and businesses. That is clearly the Rudd Government's election promise and we'll deliver on our election promise."
In a significant backflip from previous statements over the past 12 months, he described the 98% as "the objective" and eventually conceded that it could not be guaranteed.
Many telecom experts - including myself - have cast doubt that it will be delivered. Guy Cranswick, an analyst at IBRS, said it is "unlikely that the actual network will actually deliver what was promised, in reach or speed. That is a problem that could have been dealt with by stronger policy planning at the outset."
The policy should have been more specific detailing a minimum of 100Mbps to 80% of households and 20Mbps to the next 9% of homes. This would have represented the top 50 cities in Australia with a population base over 25,000, and provided via a mix of FTTH and high density FTTN using VDSL2+. The next 5% could have been serviced with a combination of exchange based ADSL2+ and wireless technologies such as HSPA, LTE or WiMAX. The remaining 5% the remote and regional areas could then be serviced with Satellite. But the formulation of their policy was ill advised with conflicting information coming from multiple sources.
Conroy went on to say "It's our election commitment to deliver 12 megabits to 98 percent of Australians and businesses. That is clearly the Rudd Government's election promise and we'll deliver on our election promise."
Communications Minister Stephen Conroy on Australian NBN
0 comments Posted Wednesday, October 01, 2008This is an interview TelecomTV had with Senator Conroy on the National Broadband Network. Not too much new information here, however what is most interesting are the comments made by an analyst from Yankee Group - Benoit Felten, a member of the "Fibre Ring".
"Interesting interview on Australia's Next-Generation Broadband. VDSL is what is aimed for. Obviously, this is very political interview, and ultimately Conroy is not saying much and wrapping what he is saying in a lot of fluff. It's, in a way, reassuring to see that lack of understanding of the dynamics of piracy responses is widespread and not limited to French politicians."
He talks about the "Digital Divide" within Australia, but fails the acknowledge the divide which is rapidly growing between Australia and other countries going FTTH/P.
"Interesting interview on Australia's Next-Generation Broadband. VDSL is what is aimed for. Obviously, this is very political interview, and ultimately Conroy is not saying much and wrapping what he is saying in a lot of fluff. It's, in a way, reassuring to see that lack of understanding of the dynamics of piracy responses is widespread and not limited to French politicians."
He talks about the "Digital Divide" within Australia, but fails the acknowledge the divide which is rapidly growing between Australia and other countries going FTTH/P.
Ministerial Press Release
The Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, today announced 26 November 2008 as the closing date for the submission of National Broadband Network proposals.
"This is a major step forward in the Government's comprehensive plan to provide Australians with higher speed broadband services," Senator Conroy said.
"The National Broadband Network is part of the Rudd Governments plan to drive investment in critical infrastructure and ensure that Australia takes advantage of the many opportunities presented by the digital economy."
Senator Conroy announced today that the last of the network information requested from carriers is available to National Broadband Network proponents. Accordingly, proponents now have 12 weeks to consider the network information before lodging their proposals.
"It has always been the Government's position that the provision of appropriate network information to proponents is vital for the success of the National Broadband Network process and that this should be done as soon as possible," Senator Conroy said.
"Requested network information has now all been received from contributing carriers, reviewed for compliance with the Government's request and is now available to all proponents."
The Government issued its Request for Proposals for the National Broadband Network on 11 April 2008. The closing time has been amended to account for time taken by the Government to necessarily work with carriers to ensure that proponents have access to information about existing networks and time to consider it. The intention is that this will help them prepare robust, competitive proposals.
To safeguard the information, proponents need to have comprehensive security arrangements in place before they can access it. These arrangements are set out in the final instruments issued on 7 August 2008.
More information regarding the National Broadband Network project is available at: www.dbcde.gov.au/nationalbroadbandnetwork
Date: 3 September 2008
Contact: Tim Marshall 0408 258 457
The Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, today announced 26 November 2008 as the closing date for the submission of National Broadband Network proposals.
"This is a major step forward in the Government's comprehensive plan to provide Australians with higher speed broadband services," Senator Conroy said.
"The National Broadband Network is part of the Rudd Governments plan to drive investment in critical infrastructure and ensure that Australia takes advantage of the many opportunities presented by the digital economy."
Senator Conroy announced today that the last of the network information requested from carriers is available to National Broadband Network proponents. Accordingly, proponents now have 12 weeks to consider the network information before lodging their proposals.
"It has always been the Government's position that the provision of appropriate network information to proponents is vital for the success of the National Broadband Network process and that this should be done as soon as possible," Senator Conroy said.
"Requested network information has now all been received from contributing carriers, reviewed for compliance with the Government's request and is now available to all proponents."
The Government issued its Request for Proposals for the National Broadband Network on 11 April 2008. The closing time has been amended to account for time taken by the Government to necessarily work with carriers to ensure that proponents have access to information about existing networks and time to consider it. The intention is that this will help them prepare robust, competitive proposals.
To safeguard the information, proponents need to have comprehensive security arrangements in place before they can access it. These arrangements are set out in the final instruments issued on 7 August 2008.
More information regarding the National Broadband Network project is available at: www.dbcde.gov.au/nationalbroadbandnetwork
Date: 3 September 2008
Contact: Tim Marshall 0408 258 457
Press Release.
The Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, today released draft instruments setting out the network information that carriers are to provide for the National Broadband Network project, and the rules to safeguard the information.
“The release of these instruments is an important step forward to ensure National Broadband Network proponents can prepare robust proposals ,” Senator Conroy said.
“The Government has always been committed to ensuring that proponents have access to necessary network information in order to prepare their proposals.”
“The scope of network information to be provided has been prepared following consultation with proponents, as well as advice from our specialist expert advisers and relevant Government agencies.”
“Based on this independent expert advice, the Government is of the view that the information set proposed is sufficient for the preparation of robust proposals.”
“The seriousness with which we have approached this task demonstrates our commitment to a genuinely competitive process for the NBN. Our approach can be contrasted with the previous government’s broadband process last year which did not propose to make any network information available to proponents,” Senator Conroy said.
The Government has decided to request the network information from carriers under legislative provisions recently introduced into the Telecommunications Act 1997.
“In previous consultations carriers have indicated that they are prepared to provide information voluntarily. The Government’s approach still provides carriers with an opportunity to submit voluntarily, but also ensures that all relevant information will be provided within clear timeframes,” Senator Conroy said.
The Government will now consult with carriers on the draft instruments. Following careful consideration of their submissions the Government will be moving to make a decision about final instruments expeditiously.
Once network information is provided to proponents, they will have 12 weeks to finalise their proposals. This will mean proposals will now be received towards the end of 2008.
“This extra time will ensure that proponents have the information required to develop their proposals.”
The Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, today released draft instruments setting out the network information that carriers are to provide for the National Broadband Network project, and the rules to safeguard the information.
“The release of these instruments is an important step forward to ensure National Broadband Network proponents can prepare robust proposals ,” Senator Conroy said.
“The Government has always been committed to ensuring that proponents have access to necessary network information in order to prepare their proposals.”
“The scope of network information to be provided has been prepared following consultation with proponents, as well as advice from our specialist expert advisers and relevant Government agencies.”
“Based on this independent expert advice, the Government is of the view that the information set proposed is sufficient for the preparation of robust proposals.”
“The seriousness with which we have approached this task demonstrates our commitment to a genuinely competitive process for the NBN. Our approach can be contrasted with the previous government’s broadband process last year which did not propose to make any network information available to proponents,” Senator Conroy said.
The Government has decided to request the network information from carriers under legislative provisions recently introduced into the Telecommunications Act 1997.
“In previous consultations carriers have indicated that they are prepared to provide information voluntarily. The Government’s approach still provides carriers with an opportunity to submit voluntarily, but also ensures that all relevant information will be provided within clear timeframes,” Senator Conroy said.
The Government will now consult with carriers on the draft instruments. Following careful consideration of their submissions the Government will be moving to make a decision about final instruments expeditiously.
Once network information is provided to proponents, they will have 12 weeks to finalise their proposals. This will mean proposals will now be received towards the end of 2008.
“This extra time will ensure that proponents have the information required to develop their proposals.”
Press Release
The Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, today announced the publication of submissions on initiatives to provide enhanced broadband to rural and remote areas.
“This consultation process sought to explore policy and funding options to provide high-speed broadband to the two per cent of premises that may not receive a service under the National Broadband Network,” Senator Conroy said.
“The Australian Government is committed to improving broadband for all Australians, including the two per cent of homes and businesses which may not be covered by the National Broadband Network.”
“The Government has already committed $270.7 million for the Australian Broadband Guarantee for four years from 2008–2012.”
Submissions were received from service providers, industry groups and members of the public.
The submissions will be considered by the Regional Telecommunications Independent Review Committee, led by Dr Bill Glasson AO, who will provide a comprehensive report to Government in August and make recommendation to improve telecommunications into the future.
The submissions will also be considered by the Government in determining appropriate options to improve telecommunications in rural and remote areas of Australia.
It is important to note that these submissions are not related to the National Broadband Network Request for Proposal process and will be considered separately.
Copies of the submissions can be found at: www.dbcde.gov.au/remotebroadband
The Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, today announced the publication of submissions on initiatives to provide enhanced broadband to rural and remote areas.
“This consultation process sought to explore policy and funding options to provide high-speed broadband to the two per cent of premises that may not receive a service under the National Broadband Network,” Senator Conroy said.
“The Australian Government is committed to improving broadband for all Australians, including the two per cent of homes and businesses which may not be covered by the National Broadband Network.”
“The Government has already committed $270.7 million for the Australian Broadband Guarantee for four years from 2008–2012.”
Submissions were received from service providers, industry groups and members of the public.
The submissions will be considered by the Regional Telecommunications Independent Review Committee, led by Dr Bill Glasson AO, who will provide a comprehensive report to Government in August and make recommendation to improve telecommunications into the future.
The submissions will also be considered by the Government in determining appropriate options to improve telecommunications in rural and remote areas of Australia.
It is important to note that these submissions are not related to the National Broadband Network Request for Proposal process and will be considered separately.
Copies of the submissions can be found at: www.dbcde.gov.au/remotebroadband
When Macquarie Group pulled out last Friday from the tender for the national broadband network, which may now cost as much as $25 billion, Communications Minister Stephen Conroy landed pretty much where he started.
That is: with Telstra as a very serious starter and the Optus-led Terria group in the mix as much to help force regulatory changes in the sector as anything else.
For the complete opinion on the current state of play by AustralianIT coloumist Michael Sainsbury visit AustralianIT
In March 2007, the Labour Party launched their National Broadband Network policy in the lead up to the Federal election in October. Since then, not everything has gone to plan for Senator Stephen Conroy's strategy.
The building of a National Broadband Network is a great strategy. Broadband was something the Howard Government never understood and investing in a 21st century infrastructure was always going to be critically important to this nation's success going forward.
However Senator Conroy's pledge to start rolling on the national broadband network by the end of the year is now in tatters because of another extension to the bid deadline and a potential trebling of the expected construction costs. Proposals for the network were initially due on the 25th of July, but last month that was extended to be 12 weeks after the release of Telstra's network information. As yet that is still to occur and with a date yet to be set it is more likely to be mid 2009 before any contracts are signed and the network build starts.
Press Release: 22 May 2008
The Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, today announced that parties participating in the National Broadband Network process will have 12 weeks to consider network information from the date all material is made available.
“In February, I wrote to carriers seeking the voluntary disclosure of network information. All carriers either have or are working towards providing this information in a timely manner and I welcome this cooperative approach,” Senator Conroy said.
“Telstra has provided some network information however despite its best efforts some information is not yet available.”
“The provision of network information is vital to allow potential proponents to build the network to compete on an equal basis.”
“The National Broadband Network represents this nation's single largest investment in broadband infrastructure. It is important that interested parties have adequate time to make use of information about existing infrastructure,” Senator Conroy said.
For this reason the Government will ensure potential proponents will have 12 weeks to consider network information before being required to lodge their proposals. The Government will amend the Request for Proposals to reflect this timetable.
The Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, today announced that parties participating in the National Broadband Network process will have 12 weeks to consider network information from the date all material is made available.
“In February, I wrote to carriers seeking the voluntary disclosure of network information. All carriers either have or are working towards providing this information in a timely manner and I welcome this cooperative approach,” Senator Conroy said.
“Telstra has provided some network information however despite its best efforts some information is not yet available.”
“The provision of network information is vital to allow potential proponents to build the network to compete on an equal basis.”
“The National Broadband Network represents this nation's single largest investment in broadband infrastructure. It is important that interested parties have adequate time to make use of information about existing infrastructure,” Senator Conroy said.
For this reason the Government will ensure potential proponents will have 12 weeks to consider network information before being required to lodge their proposals. The Government will amend the Request for Proposals to reflect this timetable.
According to an Article published by the Australian Financial Review, an undisclosed source has said that lat least six parties had notified Communications Minister Senator Conroy they planned to take part in the tender.
It has been speculated that the German based Telecoms group, Deutsche Telekom, could join forces with the G9 as an independent operator of the network, or even the G9 and Telstra working together. Macquarie Group is supposidly in bed with Leighton Holdings.
However, all of this is just speculation by the media and once the bond is paid, there is effectively a gag order (if you want you money back) on all the bidders.
By Paul Budde, BuddeComm
In March 2007 the Labor Party launched their National Broadband Plan. This was developed against the policies of the Howard Government. It was hoped that Labor, now in Government, would use its unique opportunity to fix the long-standing problems in the telecoms market, which had led to high consumer prices, lack of innovation and very little effective competition.
Its Request For Proposals (RFP) document doesn’t address any of these issues and will most probably lead to a continuation of the current unsatisfactory situation. Telstra is the only one who can successfully bid for a national solution under the RFP but they have already indicated that they will offer high-speed broadband at prices that BuddeComm indicates will be unaffordable to 80% of Australians.
The document reports on:
1. Synopsis
2. How did we get to where we are now?
3. RFP is addressing the symptoms rather than the cause
4. Government is shying away from making the tough decisions
5. Choice: Telstra’s monopolistic profits or affordable consumer prices
6. Lack of leadership will haunt the government
7. Structural changes are the only solution
8. Money can’t buy my love
9. BuddeComm’s predicted outcomes of the RFP process
10. Where is the Regulator?
11. The Minister is again raising the bar for himself
The full report is available free of charge from BuddeCom
http://www.budde.com.au/buddereports/4535/documentDetails.aspx?&docid=4535
In March 2007 the Labor Party launched their National Broadband Plan. This was developed against the policies of the Howard Government. It was hoped that Labor, now in Government, would use its unique opportunity to fix the long-standing problems in the telecoms market, which had led to high consumer prices, lack of innovation and very little effective competition.
Its Request For Proposals (RFP) document doesn’t address any of these issues and will most probably lead to a continuation of the current unsatisfactory situation. Telstra is the only one who can successfully bid for a national solution under the RFP but they have already indicated that they will offer high-speed broadband at prices that BuddeComm indicates will be unaffordable to 80% of Australians.
The document reports on:
1. Synopsis
2. How did we get to where we are now?
3. RFP is addressing the symptoms rather than the cause
4. Government is shying away from making the tough decisions
5. Choice: Telstra’s monopolistic profits or affordable consumer prices
6. Lack of leadership will haunt the government
7. Structural changes are the only solution
8. Money can’t buy my love
9. BuddeComm’s predicted outcomes of the RFP process
10. Where is the Regulator?
11. The Minister is again raising the bar for himself
The full report is available free of charge from BuddeCom
http://www.budde.com.au/buddereports/4535/documentDetails.aspx?&docid=4535
Communications minister Stephen Conroy has today pulled the plug on funding the regional broadband network rollout awarded to the Optus/Elders joint venture called OPEL.
The former Howard government committed A$958 million in funding to deliver a regional network, including to indigenous communities. One of the conditions however, was for the OPEL conglomerate to undertake testing and mapping to substantiate the service coverage area as set out in its proposal. OPEL was required to confirm that it would provide coverage ‘reasonably equivalent' to 90 per cent of ‘under-served' premises as identified by the department of broadband communications and the digital economy (DBCDE).
OPEL's Implementation Plan, submitted to the Department of Broadband, Communications and the Digital Economy (DBCDE) on January 9, failed to meet the terms of a contract made with the previous Government. “DBCDE performed an analysis of the detailed testing and mapping undertaken by OPEL, and determined that the OPEL network would cover only 72% of identified under-served premises,” Senator Conroy said.
“On the basis of DBCDE's assessment, the Government determined that OPEL's Implementation Plan did not satisfy the condition precedent of the funding agreement, and as a result the contract has been terminated.”
DBCDE undertook a detailed assessment of the testing and mapping contained in OPEL's Implementation Plan. The assessment found that OPEL did not achieve the required service coverage.
“This was the final failed broadband plan produced by the former Coalition Government,” Senator Conroy said.
“The Rudd Government has committed up to $4.7 billion to build a high-speed, open access, fibre based National Broadband Network. The new network will deliver minimum speeds [of symmetrical] 12Mbps to 98% of Australian homes and businesses.”
“The remaining 2% will continue to receive support through the Government's $95 million investment in the Australian Broadband Guarantee for 2008-2009. In addition to this, at the same time as it issues the request for proposals for the National Broadband Network, the Government will call for comments on policy and funding initiatives to improve access to affordable broadband in these remote areas into the future,” Senator Conroy said.
The former Howard government committed A$958 million in funding to deliver a regional network, including to indigenous communities. One of the conditions however, was for the OPEL conglomerate to undertake testing and mapping to substantiate the service coverage area as set out in its proposal. OPEL was required to confirm that it would provide coverage ‘reasonably equivalent' to 90 per cent of ‘under-served' premises as identified by the department of broadband communications and the digital economy (DBCDE).
OPEL's Implementation Plan, submitted to the Department of Broadband, Communications and the Digital Economy (DBCDE) on January 9, failed to meet the terms of a contract made with the previous Government. “DBCDE performed an analysis of the detailed testing and mapping undertaken by OPEL, and determined that the OPEL network would cover only 72% of identified under-served premises,” Senator Conroy said.
“On the basis of DBCDE's assessment, the Government determined that OPEL's Implementation Plan did not satisfy the condition precedent of the funding agreement, and as a result the contract has been terminated.”
DBCDE undertook a detailed assessment of the testing and mapping contained in OPEL's Implementation Plan. The assessment found that OPEL did not achieve the required service coverage.
“This was the final failed broadband plan produced by the former Coalition Government,” Senator Conroy said.
“The Rudd Government has committed up to $4.7 billion to build a high-speed, open access, fibre based National Broadband Network. The new network will deliver minimum speeds [of symmetrical] 12Mbps to 98% of Australian homes and businesses.”
“The remaining 2% will continue to receive support through the Government's $95 million investment in the Australian Broadband Guarantee for 2008-2009. In addition to this, at the same time as it issues the request for proposals for the National Broadband Network, the Government will call for comments on policy and funding initiatives to improve access to affordable broadband in these remote areas into the future,” Senator Conroy said.
Communications Minister Stephen Conroy has invited industry and members of the public to lodge submissions to help government advisors develop a request for proposal to build the new broadband network. The Network which must connect 98% of all Australian's to a 12Mbps symmetrical internet service is scheduled to be started late this year.
The Minister said, “I am sure there are a number of individuals and organisations that are interested in the Australian broadband market and that will be able to provide informed submissions to aid in the panel’s consideration of the issues."
The FTTH Special Interest Group have already formed 4 working committees (Brownfields, Greenfields, Open Access, Applications) which will be presented to the Minister by the March 30 deadline.
Details for the lodgement of submissions can be found here.
The Minister said, “I am sure there are a number of individuals and organisations that are interested in the Australian broadband market and that will be able to provide informed submissions to aid in the panel’s consideration of the issues."
The FTTH Special Interest Group have already formed 4 working committees (Brownfields, Greenfields, Open Access, Applications) which will be presented to the Minister by the March 30 deadline.
Details for the lodgement of submissions can be found here.
The Minister for Broadband, Communications and the Digital Economy, Senator the Hon Stephen Conroy, today announced the Panel of Experts to assess proposals to build the National Broadband Network.
The Panel will be chaired by the Secretary of the Department of Broadband, Communications and the Digital Economy, Ms Patricia Scott. The other members of the panel are:
“The Government will formally call for innovative and competitive proposals to roll-out the new network with a view to having construction underway by the end of 2008.”
The full article can be read here: http://www.minister.dbcde.gov.au
The Panel will be chaired by the Secretary of the Department of Broadband, Communications and the Digital Economy, Ms Patricia Scott. The other members of the panel are:
- John Wylie, Lazard Carnegie Wylie CEO.
- Tony Mitchell, Allphones Chairman.
- Laureate Professor Rod Tucker, University of Melbourne.
- Professor Emeritus of Communications, Reg Coutts, University of Adelaide.
- Tony Shaw, former Australian Communications Authority Chairman.
- Dr Ken Henry AC, Treasury Secretary.
“The Government will formally call for innovative and competitive proposals to roll-out the new network with a view to having construction underway by the end of 2008.”
The full article can be read here: http://www.minister.dbcde.gov.au
Today 40 members of the FTTH Special Interest Group (SIG) which come from a variety of industries including telecommunications, power and housing met with The Hon. Stephen Conroy, Minister for Broadband, Communications and the Digital Economy to present our collective vision for a National Broadband Network.
At a roundtable in October, Senator Conroy had promised the industry that if Labor were to win the election he would invite us to come back to him with an industry vision on his plans for a National Broadband Network. Today, that report was presented to the Minister.
The Minister clearly demonstrated his commitment to the industry and his interest in the group's input by providing more than 3 hours of his very scarice time. Getting any time with a government minister at the moment is difficult, let alone 3 hours.
The core of the report consists of seventeen recommendations that the SIG would like the Minister to consider for inclusion in the National Broadband Network tender to be released in the next few months. The single most important message the Group put to the Minister related to the need for regulatory clarity around the proposed open access model – this would allow companies to develop a serious response to the tender document.
The Minister invited the SIG to elaborate on the recommendations so that they can be considered by the "Expert Group" that will be appointed to guide the tendering process. The SIG decided to set up several working groups to this end, and the Minister has promised to assist us in contacting the people we should be talking to within Government. These working groups included:
Telstra (and G9) propose to install nodes to ensure every home is within 1500 metres of Fibre. At this range VDSL2 can offers a maximum of 25Mbps downstream and 5Mbps upstream using 24AWG cable. However Telstra currently deploys 26AWG (0.40mm) cable and as we well know there are many joints and bridge taps in the aging plant which cause further attenutation, thus reducing the speed further. These speeds are also based on transmitting at full power. Discussion within the ACIF working group on VDSL2 deployment has been around lowering transmit power levels at Remote Nodes to lessen the impact of midspan crosstalk.
When taking all these issues into account, it will be highly unlikely for the FTTN proposals of Telstra and G9 to meet the 12Mbps Symmetrical speed requirement set by the Labour Government. The only way to get the speeds higher (particularly the upstream) is to push the nodes closer to the homes and/or to replace the copper. This means more nodes, more cost and more problems (both technical and environmental). It is going to be very difficult to get any copper based technology to deliver the 12Mbps in a typical Australian suburban environment. Furthermore if we push the nodes close and replace the copper, then we might just as well install fibre all the way - particularly in Victoria where every home will have to be visited within the next 4 years to upgrade power meters to Smart meters.
The Minister was very open in speaking of the problems he is facing here, and we concluded that the industry should put more effort into educating and lobbying other departments about the benefits of the NBN in relation to current health, educational and environmental issues.
The NBN can be a catalyst in all of this. While there definitely is interest from other ministers and their advisors the opportunities created by the NBN around these issues are not yet fully understood by most of them. The synergistic effects of an NBN could be enormous if a whole-of-government approach could be achieved.
The full report can be viewed here http://www.budde.com.au/presentations/National_Vision_for_FttH_6March2008.asp
At a roundtable in October, Senator Conroy had promised the industry that if Labor were to win the election he would invite us to come back to him with an industry vision on his plans for a National Broadband Network. Today, that report was presented to the Minister.
The Minister clearly demonstrated his commitment to the industry and his interest in the group's input by providing more than 3 hours of his very scarice time. Getting any time with a government minister at the moment is difficult, let alone 3 hours.
The core of the report consists of seventeen recommendations that the SIG would like the Minister to consider for inclusion in the National Broadband Network tender to be released in the next few months. The single most important message the Group put to the Minister related to the need for regulatory clarity around the proposed open access model – this would allow companies to develop a serious response to the tender document.
The Minister invited the SIG to elaborate on the recommendations so that they can be considered by the "Expert Group" that will be appointed to guide the tendering process. The SIG decided to set up several working groups to this end, and the Minister has promised to assist us in contacting the people we should be talking to within Government. These working groups included:
- Open Access
- Greenfields
- SmartGrid/Applications
- Brownfields
"If it is within my power I will ensure even new home in a greenfield
development is connected to FTTH"
"The minimum bandwidth requirements for the National Broadband network is 12Mbps Symmetrical"The first is exciting to see a strategy being put in place for greenfield development which we all know is a "no brainer" when it comes to the future deployment of telecommunications. But it was the second statement which I found most interesting. Symmetrical internet services offering 12Mbps cannot be delivered by ADSL2+, nor can it be delivered using VDSL2! Contensious statement I know, but the former government and industry talk has always been about asymmetrical services. Delivering higher speed asymetrical services is pointless; we already have networks capable of delivering on average 10-12Mbps in the downsteam. In 2003/4 the government's own Broadband Advisery Group produced a report which defined "true broadband" as symmetrical 10Mbps. What is really needed to enable applications such as Teleworking, eHealth, HD full motion Video Conferencing (telepresence), and even take full advantage of the growing use of YouTube, Facebook, and MySpace is more upstream speeds.
Telstra (and G9) propose to install nodes to ensure every home is within 1500 metres of Fibre. At this range VDSL2 can offers a maximum of 25Mbps downstream and 5Mbps upstream using 24AWG cable. However Telstra currently deploys 26AWG (0.40mm) cable and as we well know there are many joints and bridge taps in the aging plant which cause further attenutation, thus reducing the speed further. These speeds are also based on transmitting at full power. Discussion within the ACIF working group on VDSL2 deployment has been around lowering transmit power levels at Remote Nodes to lessen the impact of midspan crosstalk.
When taking all these issues into account, it will be highly unlikely for the FTTN proposals of Telstra and G9 to meet the 12Mbps Symmetrical speed requirement set by the Labour Government. The only way to get the speeds higher (particularly the upstream) is to push the nodes closer to the homes and/or to replace the copper. This means more nodes, more cost and more problems (both technical and environmental). It is going to be very difficult to get any copper based technology to deliver the 12Mbps in a typical Australian suburban environment. Furthermore if we push the nodes close and replace the copper, then we might just as well install fibre all the way - particularly in Victoria where every home will have to be visited within the next 4 years to upgrade power meters to Smart meters.
The Minister was very open in speaking of the problems he is facing here, and we concluded that the industry should put more effort into educating and lobbying other departments about the benefits of the NBN in relation to current health, educational and environmental issues.
The NBN can be a catalyst in all of this. While there definitely is interest from other ministers and their advisors the opportunities created by the NBN around these issues are not yet fully understood by most of them. The synergistic effects of an NBN could be enormous if a whole-of-government approach could be achieved.
The full report can be viewed here http://www.budde.com.au/presentations/National_Vision_for_FttH_6March2008.asp
In an article published by Business Spectator, Alan Kohler describes his interview with Senator Conroy:
“We're very, very keen to encourage fibre-to-the-home. The benefits of fibre-to-the-home, when you combine it with smart metering, is that you could be demand-managing electricity supplies, water supplies and gas supplies. The impact on greenhouse gas production just from those sorts of technologies, if you combine these sorts of things, is very, very exciting. Fibre-to-the-home has some wonderful potential, but it is more costly and people have got to build the business case – they can't expect that the Government is going to give more than $4.7 billion.”
Perhaps there is hope yet that FTTH will get up as the main proposal.
On Thursday I will be attending a round table hosted by Paul Budde, at which an industry body will present to Senator Conroy our "Industry Vision on the National Broadband Network Plan". Simon Perkins from Silk Telecom will also be in attendance presenting on Smart metering and how FTTH can help.
“We're very, very keen to encourage fibre-to-the-home. The benefits of fibre-to-the-home, when you combine it with smart metering, is that you could be demand-managing electricity supplies, water supplies and gas supplies. The impact on greenhouse gas production just from those sorts of technologies, if you combine these sorts of things, is very, very exciting. Fibre-to-the-home has some wonderful potential, but it is more costly and people have got to build the business case – they can't expect that the Government is going to give more than $4.7 billion.”
Perhaps there is hope yet that FTTH will get up as the main proposal.
On Thursday I will be attending a round table hosted by Paul Budde, at which an industry body will present to Senator Conroy our "Industry Vision on the National Broadband Network Plan". Simon Perkins from Silk Telecom will also be in attendance presenting on Smart metering and how FTTH can help.
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