Alex Zaharov-Reutt
Monday, 05 May 2008 18:41
IT Industry -
Strategy
Page 2 of 3
According to Tasmanian newspaper, “
The Mercury”, Telstra says it isn’t at fault.
The Mercury quotes Telstra Countrywide southern general manager Noel Hunt saying that: “Tasmania was a high-cost low-volume route for internet traffic and the prices reflected a commercial return on Telstra's investment”, and that “the criticism of cabling and investment across Bass Strait shouldn't focus on Telstra.”
The Mercury also notes that Aurora, the company that is commercialising the second fibre cable, known as “Basslink”, was meant to commercialise the link “before Christmas”, presumably last year, but “nothing has happened” – while the Tasmanian State Government pays Basslink $2m per year for the Basslink cable.
Tasmanian Greens MP, Nick McKim, has put out a
statement saying Tasmania’s Internet environment is a “disgrace”, with low connectivity rates and high prices a result of “government incompetence”, although he says that the second Basslink cable is owned by Cityspring, which is owned by the Singaporean government.
McKim said that: “A highly connected community is crucial to this state’s future, and should be a core aim of the state government, yet its failure to ensure competition across Bass Strait means that connectivity rates and investment in broadband infrastructure are stalling”.
He continued: “Information is this century’s global currency, and Tasmania’s online communities risk becoming paupers rather than sharing in the riches. Broadband infrastructure will underpin Tasmania’s social and economic future, but unfortunately the state government’s incompetence is discouraging much needed investment in this area.”
McKim noted that “Tasmania’s connectivity rates are already the worst in the country”, and that “it is just not acceptable that it costs more to get data half way around the world than it does to get it across Bass Strait, and with an easy solution available the government must act swiftly.”
Mr McKim also said that he believed that the state Government is currently paying around $2m per annum to CitySpring, which means that there is no incentive for that company to open up the fibre to commercial data traffic.
“The state government owes it to Tasmania’s online community to disclose exactly what the contractual situation is with CitySpring, so we can understand exactly what has caused the delay in resolving this issue.”
What is McKim’s solution to the Tasmanian backhaul problem? Please read onto page 3.
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