NBN: Optic fibre manufacturers to win, distributors to be cut out
- 14 April, 2009 10:15
- Comments 1
The ICT industry may be rejoicing over the Government’s national broadband network (NBN) announcement but the project could leave technology distributors out in the cold.
The Federal Government announced last week that it will build the $43 billion NBN itself on a wholesale-only basis. A Government-led company will be established to oversee the project for the next 7-8 years. The network will be based on a fibre-to-the-premise (FTTP) technology.
Optic fibre manufacturer, Optimal, is one company in with a chance to get a cut of the $43 billion.
“We definitely see opportunities for our company,” Optimal marketing general manager, Paul Cross, said. “We won’t plan to get involved until the Government divulges more information but we are definitely interested.”
Cross said optic fibre manufacturers would have to work together to lay out the NBN.
“I’d be surprised if one company will roll it out alone,” he said. “Depending on how much cable the network needs, the Government will probably need multiple suppliers.”
Despite the potential boon, distributors would most likely be cut out of the action, he said.
“For our contract works we supply direct,” Optimal customer service manager, Wayne McKnight, said. “Our distributors include Madison Technologies, Page Data and PacifiCom but with big projects like the NBN it is usually a go-direct approach and no distributors are involved.”
After the surprise announcement last week ICT representative bodies welcomed the NBN decision, highlighting the potential for an employment boost in the industry.
However, not all the benefits will go to ICT.
Buddecomm director and analyst, Paul Budde, said construction and materials would be a big part of the NBN rollout.
“In terms of building the network, construction and laying out the cables is very important,” he said. “When the cables are in place, that is when the intelligence comes in and then you have to make up standards about technology.”
Alcatel-Lucent CTO, Ric Clark, claimed more than 50 per cent of the budget would go into civil construction.
“If anything, the NBN has a bigger impact in the contracting and building industry,” he said.
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Comments
Anonymous
Is this all going to be worth the wait?
It is good to see that the Government has finally decided to do something to bring Australia up to par with other developed countries in regard to data/telephony.
The concern that I have is that it is planned to take 7 -8 years, (how often do projects run to plan/schedule). We are already at least 7 - 8 years behind the rest of the world.
Here in Newcastle, so many people still can only get dial-up internet. Optus wireless has poor coverage, Telstra is expensive and unreliable, satellite is expensive, cable doesn't exist, ADSL2+ is not available at all exchanges, ADSL is not available to a lot of homes due to poor phone lines or phone exchanges being too far apart.
By the time the NBN is finished being built in the Capital cities, we will have been waiting another 4 or 5 years before anything even starts in our area, not to mention the people in further outlying areas. By the time the entire project is complete, the whole network is going to outdated and behind the rest of the world again.
Once the NBN is up and running, what are we going to have to pay to use it? When you consider that we have some of the worst prices for both phone and internet in the developed world, I don't think that anyone is going to be able to afford the "new high speeds".
What would be a better option, is rather than try to catch up with the rest of the world, take this opportunity to over take the world and look at new emerging technologies. Lets spend the in a wise way, lets look outside the box.
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