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yARN: You’ve got to be joking, Mr Minchin

Why the ICT industry must rebuke the Shadow Communications Minister for his reckless comments on the NBN

Shadow Communications Minister, Nick Minchin, needs a head check and the ICT industry should give it to him.

The minister’s comments in the last few days on the proposed national broadband network (NBN) reek of base and reckless opportunism with scant regard for the support given to the idea by the industry he will need to work with if ever gets the chance to replace the incumbent, Senator Stephen Conroy.

On the back of a survey by the Australian Communications and Media Authority (ACMA) which showed more than 80 per cent of small to medium enterprises (SME) are satisfied with their broadband Internet services, Minchin jumped at the chance to attack the Rudd NBN plan. “The Rudd Government is basing its debt-laden plan to build a $43 billion National Broadband Network on the highly questionable assumption that the overwhelming majority of Australians are deeply dissatisfied with the range of existing services," Minchin said. “There is no evidence in this ACMA report to justify the Rudd Government risking billions of dollars of taxpayers’ money.” You have got to be joking Minister. Was that the purpose of the report and is that really the only thing the Government is basing its plan on?

Mr. Minchin you can’t seriously be trying to say because we are not so disappointed with what we have now that the country doesn’t want, or need, the best of the best networks that are available today.

Unless the Minister has had his head buried in the sand he surely would know that the ICT industry, and arguably most other sectors in the economy, contends the rollout of the NBN will not only place the nation at a significant competitive advantage in the global economy but also provide job, innovation and business opportunities that are severely limited by the existing networks.

Yes, this comes at a cost. But would you rather pay it now and reap the rewards from being bold or pay for it later – because we will need to do it at some stage – and suffer the opportunity cost?

If we all settled for our existing mediocre ICT existence, as Minchin seems intent on arguing for, we would never innovate or try to improve our lot in life and the country would lose the opportunity to gain a considerable competitive advantage over other nations.

But maybe Minchin actually does believe the NBN is only about fast Internet – a week earlier after Australia came in at 11th position in a broadband penetration survey conducted by US-based firm, Strategic Analytics, he had this to say in a press release:

“Communications Minister, Stephen Conroy, loves portraying our country as a total broadband backwater, but in terms of access and penetration of services Australia remains in an extremely credible position internationally.”

In both examples the research was far from comprehensive and unlikely to be used as the sole reference in any serious investigation of the issues. There are just as many reports that indicate Australia is seriously lagging in its ICT infrastructure.

Minchin knows this, but has consciously decided to play opportunistic politics – the kind that now has his leader in dire straits after the Oz Ute email scandal. If, as a decision maker – who is ultimately accountable to the public and not his party politics – Minchin can’t rise beyond the reckless comments he has been making, leaders in the ICT industry should pull him aside and give him a serve that leaves the minister under no illusions as to why it wants the NBN.

Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.

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Comments

1

Anonymous

Wed 24/06/2009 - 20:55

The only problem with Mr. Minchins comments are that he's right. We don't need it! And if there is ever a real need for it in the future the gap will be filled by private enterprise. The NBN is one monumental waste of money.

2

Anonmous

Wed 24/06/2009 - 21:32

A "Problem" would indicate there is an actual problem....

If private sector was to deal with this problem, including that of Rural/Regional, it would have done so, but obviously not advanced (technology) enough nor quick enough (money) to do so.

3

Anonymous

Wed 24/06/2009 - 21:45

"...will be filled by private enterprise." LOL another person with their head in the sand. They tried that already and it was called Telstra. The NBN does far more than just provide a network. It neatly breaks the monopoly on the telecommunications sector in this country.

4

Anonymous

Wed 24/06/2009 - 21:49

Re: The only problem with Mr.

Instructions:

1. Stick head so far in sand that nothing from the real world gets to your eyes or ears

2. Pretend any discussions or debate on real world market and technology matters/conditions, that do not make you the hero, are delusionsal bleatings

3. Fool yourself that the Telstra monopoly is a good thing for Australia

4. Restate in yourself that ther Telstra monopoly is a good thing, ignoring any and all realities

5. Fondle your Telstra paycheck...

6. Logon to ARN and claim that nobody needs the NBN, as everything is just super duper dandy in the Australian telecoms market

7. Call Sol back and have another chuckle about those backward racist Australians hicks...

5

neil_mc

Wed 24/06/2009 - 21:56

dissapointed

There are so many ways business can be conducted differently that have nothing to do with how happy users are with their current speed etc.

It's extremely short sighted by Mr Minchin. I thought he was smarter than that. Maybe it's just part of the political game looking for things to attack that might resonate with voters.

For me it's echos of Alston's comments in 2002:

"Well for example, people will tell you that pornography is one of the major reasons why there's been a high take-up rate in South Korea."

"My scepticism has really been about whether there is any compelling national interest in the Government spending money on subsidising roll-outs to consumers," "Because at the moment it's pretty much more of the same but a bit faster for most consumers."

So here we are 7 years on...... should we all just be happy with dialup? When alternatives to dialup speeds were becoming attainable people were questioning what was the real use of it. So I guess we just don't plan for anything and just be prepared to deal with one crisis after another?

6

Anonymous

Wed 24/06/2009 - 23:32

Private enterprise is not motivated by need, they are only motivated by profits.

7

Anonymous

Thu 25/06/2009 - 00:26

LOL private enterprise?
Since

LOL private enterprise?
Since when do they care about what you NEED?
If they can keep milking their current cashcow they will and nothing will stop them unless its competition(which is busy milking too) or government regulation(has been weak in the howard era).
This is a well documented and understood.
To say private enterprise will expand to all needs is ridiculous and completely out of touch.
The way things are "supposed to work" and the way things DO work are entirely different.

8

Sydney Lawrence

Thu 25/06/2009 - 07:33

Investments must pay.

Very soon Australians are going to see that the Government does not have any money and all the handouts (and proposed NBN) are being paid for on the never never and must be repaid. Any Government investment, the NBN included, must have a return on investment as does any private investment.

9

DC

Thu 25/06/2009 - 09:43

Dear Mr Clarke & disapointed

I think by reading the comments here you will realise the average Australian actually has a clue.

Dear Disappointed
The difference between now and 2002 is that up until now
provision has been driven by need. NOT by someone's attempt to make their mark on the Australian Political Landscape.
We have today what we want and need because the need came first and it didn't cost us 43 Billion dollars and risk our economy.

No-one including KRuddandco(tm) can divine the future of technology. In 8 years we may be down the dunny to the tune of $43B(or more) with an obsolete network where the average person has to fork out for a dark fibre connection because well 100Mbs is Sooo 2009

DC

10

peril *whirlpool*

Thu 25/06/2009 - 10:47

Are you kidding me? We don't need it? I wonder if once upon a time someone said we don't need a copper netword.

When will people realise that Plumbing, Electricity, gas and Communications (Fibre) are staples.

The copper network is soon to be redundant... Lets skip the crap go straight for FTTH that way we won't be stuffing around whilst the rest of the world is.

Hey we should even use the opportunity to fix up some of those other staples. Lets clean up the power poles and undeground conduits.

In 15years when the network is the best in the world and Telstra is just another provider you will all be thanking your selves.

It is unfortunate that conroy seems to be unable to sell this project properly. It is also unfortunate that he is shotting himself in the foot with all this filtering crap that %90 of Australians won't use!

11

Anonymous

Thu 25/06/2009 - 11:35

We do need it

Any Australian small business requiring decent uplink speeds pays through the nose at the moment. As a small video post production company with international clients we rely heavily on FTP to deliver our work.

SOHO grade ADSL2+ gives us 2mb/s uplink speed but its not enough when you're working with HD video files that are many GBs in size.

Next step up is 4mb SHDSL at around $1800 per month (unlimited with 1:1 contention ratio)

Anything beyond 4mb (like 10mb/s ethernet) you're looking at prices in excess of $5000 per month.

If the NBN delivers performance anything like Verizon FIOS in California than we should be able to get 20mb/s uplink for about the same price as what we pay now for SHDSL. That would be a tremendous boost to our productivity and profitability.

Just hurry up and roll it out already, we crying out for affordable bandwith.

12

Anonymous

Thu 25/06/2009 - 13:01

Must they?

Investments must pay, when was the last time you saw a main road show a return on investment? How about a hospital? The police? Fire fighters? How about the sewage system?

This investment is about infrastructure and like a road it is about moving something from one place to another in a timely manner.

The return on investment will be more of less esoteric in so much as the better network will spawn innovation and new business. That will, in turn, generate more in taxes and thus start to pay back some debt.

13

Johnny

Thu 25/06/2009 - 14:33

NBN not really JUST about broadband

I think the MAIN point that MOST people do not understand about this network is the roles it can (and will) play in areas OTHER THAN BROADBAND.

It has the potential to fulfill so many roles and do so much. It is an infrastructure upgrade NOT a broadband upgrade as once it is completed we will have a lot more than just broadband running through it.

It is future-proof
It will provide jobs
It will pay for itself (in the same way any major road / train network does)

Thankyou and Good-day

14

Anonymous

Thu 25/06/2009 - 15:30

Pffft

Michin's about the same age as Alston and sound like he believes the same thing ... Internet is only useful for delivering faster pr0n :P

Minchin and Alston's 1950's type thinking really needs to be overhauled and updated with regards to the new emerging digital economies ...

I for one would love to host all my home videos and photos of my kids growing up on a server that my friends and family only have access too (and is not controlled by somebody else, ala facebook, youtube, etc) ...

I would also love to have a webcam running while the kids play and their grandparents can interact with from half-way around the world (instead of the current capped 256kbps upload that only allows 320x240 video at 1 frame per second) ...

Thanks Minchin, but no thanks, go join the likes of Alston somewhere far far away in a country that doesn't have the backbone to provide even half decent communication services, may I suggest Ethopia or Tanzania ...

Peter

15

Anonymous

Thu 25/06/2009 - 15:32

Pffft

Michin's about the same age as Alston and sound like he believes the same thing ... Internet is only useful for delivering faster pr0n :P

Minchin and Alston's 1950's type thinking really needs to be overhauled and updated with regards to the new emerging digital economies ...

I for one would love to host all my home videos and photos of my kids growing up on a server that my friends and family only have access too (and is not controlled by somebody else, ala facebook, youtube, etc) ...

I would also love to have a webcam running while the kids play and their grandparents can interact with from half-way around the world (instead of the current capped 256kbps upload that only allows 320x240 video at 1 frame per second) ...

Thanks Minchin, but no thanks, go join the likes of Alston somewhere far far away in a country that doesn't have the backbone to provide even half decent communication services, may I suggest Ethopia or Tanzania ...

Peter

16

Anonymous

Sat 18/07/2009 - 09:45

NBN: Warm rhetoric

Logic suggests it is a good thing.
My gut says its a good thing.

My tax payer dollars say: show me the business case, paint me some pictures of what the future may offer 5,10,20 years from now.

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