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yARN: The Coalition’s broadband strategy could be a winner

Although the IT industry and many tech-savvy Australians have come out against the Coalition, the target was always the average voter
The ACS' ICT policy debate in Canberra with Communications Minister, Senator Stephen Conroy, Shadow Communications Minister, Tony Smith, Sky News host, David Speers, and Australian Greens Communications spokesperson, Senator Scott Ludlam.

The ACS' ICT policy debate in Canberra with Communications Minister, Senator Stephen Conroy, Shadow Communications Minister, Tony Smith, Sky News host, David Speers, and Australian Greens Communications spokesperson, Senator Scott Ludlam.

Many IT-savvy Australians and industry experts think the policy is terrible, but the Coalition’s broadband strategy could be a successful play for the mainstream vote.

In speaking with the ISP industry, ARN found most were critical of the Coalition’s plan and supportive of the Government’s National Broadband Network.

“[The Coalition] hasn’t given it the sort of thought or in-depth consideration that we would have expected,” iiNet chief regulatory officer, Steve Dalby, said. “It’s likely to be outstripped by demand in a short space of time.”

Industry bodies that represent technology companies around Australia were worried about the policy and gave it a thumbs down.

“The general consensus is that it was a bit short of the mark,” Australian Computer Society CEO, Bruce Lakin, said. “I’d personally leave the Coalition in a failing grade…it doesn’t seem to be technically elegant or offer the platform to move with the evolution of technology.”

The mood from commenters on ARN was no better, with many blasting the Coalition and its plan as inferior.

“What a total waste of $6billion!” singo79 said. “This plan it outdated on paper, it was outdated back in 2006 when they thought the plan up and it will be a decade behind if it was ever to get rolled out.

“We have already outgrown 12Mbps and it is an absolute insult to be told by a lacklustre Liberal Party that it is state of the art.”

But the simple fact is the Coalition never planned on winning over the IT industry or tech-savvy Australians. Instead, the target audience is everyday Australians who want faster Internet without spending huge sums of cash.

Opposition leader, Tony Abbott, was slammed by many Net-dwellers for coming out on the 7:30 Report and rebutting host Kerry O’Brien’s questions with the comment, "I’m no Bill Gates here, and I don’t claim to be any kind of tech-head in all of this”, when failing to answer questions.

The majority of Australia will identify with these comments. With illegal immigration, the environment, the mining tax and now high-speed rail on the agenda, a leader that delegates because he doesn’t know what “peak speed” Internet rates are is not going to become a pariah.

Abbott’s use of these terms is also important because most Australians don’t see themselves as ‘tech-heads’ and consider Bill Gates to be little more than a wealthy nerd that makes Windows. By citing those two points, he has connected with plenty of everyday voters.

The fact of the matter is that sacrificing the NBN and spending its money in other portfolios was always the main game.

During the well-rehearsed ICT Policy debate in Canberra, it was clear that Communications Minister, Senator Stephen Conroy, was playing for the audience. He made technical jokes that the IT executives laughed at and demanded answers on hot-button topics like “spectrum availability”.

In contrast, Shadow Communications Minister, Tony Smith, made simpler statements assuring Australia that his plan would offer faster Internet than they currently experience for a fraction of a price.

Or as he put it at the press conference, “It’s proportional, sensible and responsible.”

As soon as the cameras turned off and the networking began, Conroy and Ludlam stayed to talk with the industry as Smith made a swift ‘exit-left’ before the tough conversations could come.

But the Coalition’s strategy isn’t that one-dimensional. It has put several billion dollars into getting faster Internet and offered 60-70,000km of back-haul fibre along with fixed wireless and satellite services and the result is that most in the industry see it as a positive step in the right direction with plenty of technical limitations.

In this situation it is ironically Conroy’s excess of intelligence that has stifled his ability to fight back. The Minister came out swinging and demanded to know what spectrum the new wireless broadband would be provided in.

He also challenged the ability of hybrid fibre-coaxial systems to support 100Mbps burst speeds for a series of users connected on a single network while claiming LTE download speeds could not be sustained with user loads when moving further away from mobile phone towers.

All of these are excellent points and none of them will translate well in mainstream publications or on television news programs.

The bottom line is the Coalition’s offer in the final stretch is a solution it acknowledges is worse than Conroy’s. But it’s better than what most Australians have right now and it will cost them far less money.

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

More about: ARN, Australian Computer Society, Bill, etwork, iiNet
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Comments

1

Greg

Fri 13/08/2010 - 14:22

The Libs are spot on, why would you want to waste money so that the nerds can download a movie in 5 mins instead of 15 and then forcing Joe public to sign up even if they don't want it. This is not nation building it is a total waste of my money.

2

James

Fri 13/08/2010 - 14:27

Abbott is spot on, what is the real benefit to the average family. Internet TV in HD for mum and the kids and HD porn for Dad

3

Giuseppe De Simone

Fri 13/08/2010 - 14:47

Anyone who knows anything about the internet knows the real issue is not internet speed at the last mile but across the Pacific where 70% of the content gets delivered at present. Laying fibre there makes a lot more sense. It's no use having 100 Mbs to view ARN advertisements when you can't get 1Mbs to download Microsoft Windows patches.

4

Marcus

Fri 13/08/2010 - 14:53

So when your children's school asks for more internet speed to get faster access to the the rest of the world's information which is on a faster network? And they can't get it due to Liberal Policy that they stopped the NBN or costs too much instead of being there for them already. What will you tell your kids then?

Yeah I voted for the Liberals thinking I would save tax payer the money and now I wish I didn't?

By that stage it will be too late to spend what could be $120 Billion instead of $43 Billion in todays terms......

Also you expect your local school/State Government to pay for a fibre connection for all the schools when they need it? Instead of it being provided by the NBN for free? They all have their costs as well to provide for more immediate needs.....

5

Joanna

Fri 13/08/2010 - 14:54

waste of 6 billion on a short term 'solution' and extremely short sighted hence after many years voting Liberal they now have lost my family's vote at this election

6

Simon Sarfaty

Fri 13/08/2010 - 18:24

By pro-actively investing now in HSBB, we will help to secure our children's and our grandchildren's future as well as that of the nation. It's also a viable asset a future government (of any persuasion) can sell off at the right time to pay for further infrastructure projects, health care, etc., the same way as was done with Telstra and, in some states, railways, etc. If the business community alone should build a system that won't, to all intents and purposes, properly do the job, then a future government will not be able to meet its own costs for the next generation. It also means that big business - and big business alone - would get the final say on how a second-rate system should be managed, i.e. stuff the consumer. Think about it...

7

Abba Dabba Doo

Fri 13/08/2010 - 19:39

lol... Just gotta love those folks whose world view of the internet is movie downloads...

That's it? That's all you've got? ROFL!

The average Australian undestands that we must invest in the future, otherwise why build new roads and freeways?

Why upgrade water systems and drainage systems, why upgrade rail systems?

Why upgrade airport and flight systems?

Why build a Snowy Mountain Scheme?

Why didn't we just stay with 28.8kbps modems if all bigger speeds were for is internet movies?

After all, all our competitors internationally are not investing if 100Mbps networks, correct?

Ooops, they are... But we know they are wrong because the pinnacle of technology based industry wisdom rests with Abbott and Smith... Beholden for a decade to Telstra's whims, they know which horse to back...

And that horse was Sol Trujillo...

8

Tim BIG PICTURE GUY

Fri 13/08/2010 - 22:27

The biggest benefit of fibre is replacing the degraded copper telephone network.
Basic science: Copper, Water and electricity mixed together what do you get? have a think or look it up

Ask your self how many times has your phone cut out?

How many interuptions do you get on your current internet?

1 Replacing a degraded telephony system that is rotting away due to lack of investment or incentive to maintain and improve services

2 Fixing the current issue of the dominant telcos.
as NBNCO is a "WHOLESALER" not selling to the public only to the Retails Service Providers (ISPS in todays terms). so therefore there is no CONFLICT OF INTEREST

3 Faster loading of websites as they become more and more media based. Remember EBAY when it good be used quite well on 56K? Now it is too slow on 256K speeds. Loads FACEBOOK faster. FASTER downloads, Faster emails, better skype, better video chat

4 Competition in our international capacity is intensifying and will only get better

5 We have to build as the private sector has FAILED to come to the table

6 Deliver the service: the customers, services, jobs, money, benefits will have a flow on affect

7 To say the demand is not there it is a lie.
School's need it, Mine's wan't it, any IT buisness want's it, UNIVERSITY needs it

8. One cable to deliver you: Tv, internet, Phone and much more.

9 WORK FROM HOME NEARLY ANYWHERE IN AUSTRALIA!!!
WITHOUT THE CURRENT DELAYS

10 Prices will not be as bad as people think they will be with fibre.
Without it prices will have to rise to the degradation and constant building of wireless towers to compensate for the unrelability.

11 More "GENERAL PUBLIC" information is needed

12 Ask yourself what frustrates you about your computer at the moment? Is it speed? well most problems associated with speed i have found is that the persons internet connection is too slow to handle the services/features they want to achieve

13 Better Backups

14 Think of it as this: Road/Raid Infrastucture of the future that requires less maintenance than existing, is more reliable, is much easily upgradeable. e.g. turn a single lane road into a highway overnight more or less

15 WE ALREADY GET BETTER INTERNET THEN WHAT IS BEING OFFERED BY THE LIBS AT REASONABLE PRICES! ADSL2, CABLE

16 Wireless does not work well with multiple users. E.G:
you can get a nice fast 20+Mbps dongle from the incumbent $T
however depending on your surrounding physical landmarks, interuption, amount of users on the tower. You will not get that speed. Most wireless connections are at 3.6Mbps. with most download rates at 70KB-300KB/S. inferior in comparison

17 Yes there is a better way to deliver the services at a affordable policy however it would take forever to explain this. in breif:
FTTP in metro, FTTN in regional connecting houses using copper but using VDSL2. Really remote areas get Wireless/Satellite based on economic/land scenarios

i hope you enjoyed reading this

9

Daniel

Sat 14/08/2010 - 02:16

Tim, thank you. Could not have put it better myself. People do not understand the whole internet problem we have and you have outlined it perfectly. If only Gillard would explain all these steps to the average person who does not understand technology, it would go along way in helping her win the vote. WE NEED TO UPGRADE OUR TECHNOLOGY otherwise we are just going to fail.

Being in america for 6months really opened my eyes about how far we really are. Point 8 is all people really need to read, one cable to deliver you tv, internet, phone. In doing this, the prices will drop, you will get packaged deal and overall it will be a hell of alot cheaper.

10

Gav

Sat 14/08/2010 - 05:08

Love the comments about not spending the tax payers cash on 'nerds'

NEWSFLASH: Nerds pay taxes too!

The NBN will only cost 4% of the annual budget, what's the problem?

$1.1 trillion will be spent on welfare this year, and that's all within budget - not something triggering debt.

Yet a national broadband network, that costs a mere 4% of the budget, is such a waste of cash?

The NBN will save everyone money, you like paying alot of cash at current for your service?

NBN plans in Tasmania start at $2 per month with 25Mbps (faster than ADSL2+) and home phone included.

But sure, it will just cost you money, right? $2 for your phone and internet is expensive, if they go any further they might even be giving it to you for gree!

People seriously need to look into the future, no wonder Australia is falling so far behind.

11

Tim

Sat 14/08/2010 - 11:11

Sorry, but $43 BILLION is just too much to spend on a network. It's an insane amount! That sort of dosh should be able to cover what Labor is promising twice over!

I'm with the Coalition based purely on this one - the money is better spent on schools, hospitals and other important things that have to be fixed Right Now!

12

Duke

Sat 14/08/2010 - 11:21

Check todays polls, the NBN is a deal breaker. And it is infrastructure for the future, at 4.3 billion a year is cheap as chips and not a Maquarie Bank balance sheet writeoff. The clever folks will vote under the line in the senate to kill the filter and reject the Libs broadband mud pie swill.

13

Marc

Sat 14/08/2010 - 12:39

Anyone who knows anything about technology realise that Australia needs the NBN. If we dont build it within the next few years, we will be building it within 15 years. We need it, wether the general population realises it or not. This is an infrastructure that will be used for the next 50 years, and 43 billion will seem cheap then. The coalition wants to tie us to a technology that is already out of date, is slower than the connection most of the population already has and that maintains telstras monopoly and high prices. Australia doesnt have the population to support a level playing field in terms of internet communications, its been proven over the last 15 years.
If you are happy with the speed and price of your current ISP plan, and you think you will be happy with the same speed and prices for the next 15 years, vote for the Coalition. If you think, along with the rest of the telecommunications industry and anyone who understands the subject, that Australia desperately needs more competition, a level playing field, much cheaper prices, and of course much, much faster speeds, then vote accordingly.

14

Pharaoh

Sat 14/08/2010 - 14:02

I'd like to see someone explain exactly how the Coalition's plan will actually affect the status quo of most Australians' Internet connections. Will 'optimising DSL' speed up your 2.5Mbps sync and if so how? What sort of wireless is being deployed in metropolitan areas and will it be parallel to DSL or only in areas without it? Will it supplement or compete with Telstra's 3G? Will it cost 10x more per GB than fixed line?

15

Steven

Sat 14/08/2010 - 16:46

I find it interesting that some people are quite happy to have worse internet availability and functionality at a much higher cost than many supposedly 'developing' countries - that is where we currently stand at the moment.

Internet has gone far beyond a mere tool to download movies and play games, it is now a vital part of our social interaction and our most widely used knowledge repository.

A massively improved ocean floor fibre upgrade combined with wireless towers instead of household fibre would have been my preferred solution - however since that was not on the table, I would rather the proposed 1gbs fibre proposal over the lackluster 'alternative'

16

Stirling

Sat 14/08/2010 - 18:14

You're wrong where you say it will cost us less money. The coalition plan involves throwing money at the private sector, without any revenues to speak of. The Labor plan involves a monopoly carrier that will pay itself off and then deliver a profit for the country. End users will not see lower prices under the Liberal plan, because Telstra will still have a strangle hold on the last mile - and the Coalition have pledged not to separate the company. While non-tech-savvy voters might be convinced that they don't need to build the NBN, those voters will most likely be Coalition aligned already. A Labor voter is not going to swing to Liberal because of this, and there are tech-savvy Liberal voters who will be disappointed by the Coalition policy. The effect will in fact be a further piling out from major parties into the Greens.

17

Canberra Watcher

Sun 15/08/2010 - 10:45

What people are failing to realise is that the NBN isn't a technology project. All the proposed technology already exists and can be ordered off a vendor's price list.

The NBN is a large-scale civil works project. The challenge is the scale. Success or failure isn't down to whether they can deliver 10M, 100M or 1G - success depends upon them being able to roll a service to all users on time and on budget.

So far there are 70 homes connected to the NBN. 20% of the proposed schedule is behind them, with only 0.0007% of the customer base connected. Promising an extra 300,000 homes connected or a speed increase to 1G is just a distraction from the complete lack of traction in this project.

18

Some Guy

Sun 15/08/2010 - 13:34

I would just like to point out this difference in pricing since some people believe it will cost more, Now this is comparing Wireless pricing which is approximatively standard pricing for all ISP's compared to Internodes Fibre Optics broadband that was recently rolled out in 3 areas of Tasmania

Wireless Pricing
http://go.bigpond.com/wireless/?ref=Net-Head-Int-Plans-Wireless

Firbe optics Pricing
http://www.internode.on.net/residential/broadband/fibre_to_the_home/estates/plans/

Now current Wireless speeds are "supposed" to be 8mb/s max however i'm currently "stuck" on it due to Bigpond refusing to upgrade the exchange and would only receive approx 512kb/s

Now compared to the Fibre optics which at maximum speed available would essentially equate to 200x faster than what I currently get at a fairer price and larger bandwidth allocation than Wireless Technology... Geez I wonder what i would pick...

19

Bob

Tue 17/08/2010 - 14:52

An 8 lane highway might seem overkill now, but when the population of your city doubles and then doubles again that 8 lane highway will still be going strong. That is what labor is offering.

A 3 lane highway may lessen your current traffic problems but it is just a band-aid when you NEED a 4 lane highway at a minimum, and that 4 lane system would need to be upgraded soon after implementation anyway (which will cost more every time it needs to be upgraded). This is what the Liberals are offering.

20

TuffGuy

Wed 18/08/2010 - 19:39

All those knocking the NBN and waffling on about the 43 billion it will cost seem to forget that this is only a maximum estimate. If labour structurally separate Telstra and pay them the 11 billion the NBN will then acquire all of the infrastructure too. All the pipes and ducts and stuff they will not have to build from scratch that they can just roll the fibre through, all the backbones already there, etc. They forget it cost less to buy existing trenches, ducts and pipes than to build new ones.

21

Jerry

Thu 19/08/2010 - 19:51

To 1Greg
Fri 13/08/2010 - 14:22
So just because Britain have a sh!t policy for regional broadband we should follow them?
Television and Radio content will be delivered through fibre in the future. The ethernet cables that connect to the back of your computers will also power everything in your home including your tv......http://www.hdbaset.org/
Although I do not believe that FTTH needs to be as comprehensively distributed to every house hold as the government plans it be. Some places are better off using advanced wireless for the last mile.

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Tags: Australian Computer Society CEO, Bruce Lakin, Communications Minister, National Broadband Network (NBN), Opposition leader, Senator Stephen Conroy, Tony Abbott
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