Turnbull: NBN will strand existing fibre links

Shadow Communications Minister claims ACCC inquiry was “hasty” and created uncertainty for investors

The Shadow Communications Minister, Malcolm Turnbull, has claimed the National Broadband Network’s plan to limit the number of Points of Interconnect (PoI) will strand hundreds of millions of dollars of existing fibre links.

Update: Conroy responds.

A PoI is a location where retail and wholesale service providers connect to the NBN to provide and receive its access capability.

“The NBN’s proposal will bypass infrastructure that has already been built by private companies,” Turnbull’s statement said. “These links will be excluded from carrying fixed line traffic if the NBN’s plans go ahead.

“Further private investment in communications infrastructure in Australia will be reduced because of increased uncertainty and sovereign risk.”

Turnbull also used his statement to label the Australian Competition and Consumer Commission’s (ACCC) inquiry into locations for Points of Interconnect as “hasty” and claimed it created regulatory uncertainty for backhaul investors.

ARN contacted the office of Communications Minister, Senator Stephen Conroy, and was unable to get a response by time of publication, but one is expected by this afternoon.

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Tags points of interconnectShadow Communications MinisteracccMalcolm TurnbullPOINBN

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10 Comments

Daniel

1

Obviously Turnbull doesn't understand how much bandwidth we use locally and where most of our bandwidth comes from....

Internationally.

Mark

2

Yes but - as the NBN becomes pervasive we will be generating more and more of our content inside Australia. Maybe not pirated movies & TV shows but lots of video conferencing & other high bandwidth applications will be generating content that will largely be local (in Australia) traffic.

Tom Brown

3

Quote: President Abraham Lincoln

"It is true that you may fool all of the people some of the time;
you can even fool some of the people all of the time;
but you can?t fool all of the people all of the time."

Mr Turnbull appears to spruik inconsistencies, ambiguity, uncertainty, ignorance, and emotion to the reader. I must not be his target audience.

Mr Turnbull makes statements as facts of thing not yet decided or more so that are not facts at all. He questions the ACCC's role because the ACCC has not backed or in any way gave credence to the coalitions attacks on the government.

The quote “Further private investment in communications infrastructure in Australia will be reduced because of increased uncertainty and sovereign risk.” well sovereign risk is not relegated at all to the subject, the NBN. Maybe the statement refers to the economic market but if it is such a general statement he should not use in this context unless defined so. But he does as he knows few will know or bother to look up and interpret the meaning of sovereign risk but it looks good.

Without logical argument and the apparent inability to give actual facts Mr Turnbull is playing a Childs game of "What they don't know won't hurt me".

Mr Turnbull is running the risk of permanent damage to his reputation in a significant segment of this market, a segment with significant influence generally and specifically amongst decision makers.

lantana

4


Sounds as though Turnbull has been on the receiving end of some special pleading and self-interest.

Crying crocodile tears about the location of POI is a bit like saying that modern highways should never replace the old goat tracks because somebody might find the new alignment less convenient to them personally.

Andrew

5

I am an Aussie living internationally enjoying my 50 euro a month 240 meg connection. Would be nice however to be able to skype the family back home. Mum can only get dialup and dad is limited to a pretty crap adsl 1 connection.

If there is one thing that pisses me off about oz its the Turnbull's that seem to be far too prevalent. With that mentality its surprising we are not still all riding horses and posting letters in the absence of anything more advanced.

My only advice is to do what I do. Try to educate the older generation cause they are probably the only ones who might be fooled into believing his nonsense. (Apologies to any Tech savvy elderly, you are the exception)

Taxpayer

6

@Andrew, I'll bet you a US Dollar to a Euro that you are living in a major city, and "Mum & Dad" are in the outback or some small country town. The whole of Europe can fit in Western Australia, and the population density difference enormous, so your comparison is invalid.

It's not high speed internet that people are objecting to, it's the HUGE cost, without a business plan, of the NBN as well as Conroy's know-it-all attitude. Someone has to pay, Andrew, and that will be the Australian taxpayers for generations to come. Even those that don't need or want high speed internet. I would like it very much, BTW.

And you can use Skype on relatively slow ADSL connections - it only needs 16kbps (or less) for a voice call!

Henry

7

Taxpayer is spot on. I think sovereign risk refers to the fact that the nbn requires exemption from the trade practices act. No other company is allowed to compete with the nbn in the provision of fibre optics. Hence Malcolm talks about the bypassing of already functioning fibre o's and copper network that can be upgraded to provide speeds that many people would be fine with.

Andrew

8

@Taxpayer. You are right about me. I live in Helsinki Finland, about 10km out of the city. Wrong about the parents though. My dad lives in a new suburb in Sydney that was only built about 10 years ago (Glenwood). As for my mother she is 11.9 km from the centre of the Gold coast.

Population density for Australia is 2.92 people per square Km. For Finland it is 15.88. If you took out all the land in Australia where no one definitely lives it could be sort of close. I believe it is very much about attitude. Finns pride themselves on being technologically advanced and they invest in decent infrastructure. Hence many companies like Nokia, Kone etc. being born.

I take your point though about the government. Generally anything they try to do they screw up. Suppose I am just so frustrated with the whole situation I would just like some party to take action on it. Telstra is as useless as tits on a bull so nothing will ever happen there.

Andrew

9

@Taxpayer Sorry and one more thing about the Skype. You are right you can get a connection with it over dial-up. The connection speed from the Gold coast is 24 kb/s. Problem is though the lag starts off at about 1 second but will continue to grow as the conversation goes on so not the best solution :)

Taxpayer

10

@Andrew, I seem to remember that Finland topped the European list insofar as Internet connectivity goes;-) The weather means they are completely snowed in 6 months of the year (or more), making good indoor services essential! Hence the high tech expertise, especially in communications. But I'm sure Oz has better surfers and cricketers.

Nevertheless, I certainly look forward to ubiquitous fast Internet in Oz, but not if it becomes an "entitlement" for the dole bludgers.

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