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Our Blogs The Big House NBN's small footprint a big opportunity for Telstra
Our Blogs The Big House NBN's small footprint a big opportunity for Telstra | NBN's small footprint a big opportunity for Telstra |
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| by James Riley | |
| Friday, 16 October 2009 | |
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And that presents enormous opportunities for Telstra's wholesale operation, regardless of the outcome of its discussions with Government. NBN Co is, of course, building an open access, wholesale-only fibre to the home network. This will be universal, delivered to all homes and business (90 per cent of the population gets fibre, the rest some other broadband technology) But its fibre will connect homes to the nearest interconnect point. It focus is giving retailers open access to a fat pipe into homes and businesses, replacing the last-mile choke point that has bedevilled the industry. And it will certainly not be the only wholesale provider of services. As a clearer picture of the NBN Co's place in the industry starts to emerge, it is in what the company won't do that is most telling. The NBN will not build international capacity: That's for the market to undertake, based on demand and where that market thinks it can turn a profit. It will not deploy backhaul fibre all over Australia as a sole backbone provider. While NBN Co will clearly build backhaul services to geographies and markets inadequately served by commercial infrastructure, it will largely rely on the market for this infrastructure. The NBN Co will not provide services beyond a Level 2 bitstream. It wants to remain as low down on the value chain as possible – leaving actual contestable service delivery to retailers and managed service providers. Aside from providing the premises to the point of interconnect fibre (or satellite/wireless,) the NBN Co thinking is straight-forward: Where there is a contestable market for services or infrastructure, it will rely on the market. This still leaves an almighty task. There is a well-worn path to the company's executive chairman Mike Quigley's door from people and companies seeking to get involved in the company. The queue that has formed includes the biggest multinational companies, it includes governments, councils, utility companies, railway interests, construction firms – and not a small number of individuals who want to get involved. CONTINUED Page 2 |
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