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Telstra's $15b FTTN estimate "scaremongering" E-mail
by Stuart Corner   
Monday, 26 May 2008
Telstra did not specify the percentage to be served by FTTN but did promise to deploy fibre to "new distribution nodes in many rural areas."

Telstra put the total cost at $5.7b over three years and wanted government to chip in $2.6bn. It described this as the "best solution" saying it represented the lowest cost and most effective option for most Australians, that "alternatives would be too costly or quickly overtaken by service standards in urban areas," and that it would provide a platform for future investment to 12Mbps and beyond.

12Mbps to 99 percent of urban and 94 percent of rural was presented as a more costly alternative that would require $4.7b of government funding (this is where the figure in the current NBN RFP comes from - not as the result of detailed estimates independent of Telstra).

Telstra did not specify what its contribution would be but it warned that the technology for this solution was already "being overtaken by urban standards and would create different standards across urban and rural areas."

Until, and unless we see a viable alternative proposal from the current RFP process we will have made precisely zero progress in three years. Slattery, for one believes that Australia has in fact gone backwards. He has called  on G9 (now TERRiA) to boycott the entire process which he claims is completely flawed and designed, intentionally or otherwise to leave Telstra as the only party capable of responding.

TERRiA and others may have stumped up their $5m entry ticket but this should be no indication that they are really serious: they could hardly have done otherwise and the money - insignificant in the grand scheme of things will eventually be refunded. Without paying it they would not get access to the Telstra network information without which it would be impossible to accurately cost a bid.

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