Telstra has revealed the addition of almost one million new mobile services in the six months to December 2011, but Sensis revenues plummeted 24 percent in 12 months.
The consortium of eight carriers that announced plans in April for an alternative FTTN rollout to that planned by Telstra has released an interim working paper – prepared by dandolo partners and the Allen Consulting Group - criticising the Telstra proposal as a prelude to a promised "detailed proposal which "avoids the problems associated with Telstra's FTTN model".
The consortium, comprising AAPT, Internode, iiNet, Macquarie Telecom, Optus, Powertel, Primus, Soul and TransACT promises to release its detailed proposal within two weeks.
The working paper claims four fundamental problems with Telstra's FTTN plan:
- With its FTTN network reaching only four million homes and businesses, Telstra would create a two tier Australia, with less than half of Australia able to receive high speed broadband, and the remainder stuck with lower speed broadband;
- It would establish Telstra as the monopoly provider of FTTN — because there is no way for competitors to use 'unbundled' elements of the FTTN;
- It would seriously damage Unbundled Local Loop Service (ULLS) based broadband competition (which the paper suggests "appears to be a significant motivation for FTTN";
- It would enhance Telstra's capacity to sabotage its competitors.
The paper says that the 'node' is too small for competitors to install their own electronic equipment and it would be pointless for competitors to build their own nodes next to Telstra's nodes because there would be no way for the competitor to interconnect with the copper wires into customers' homes.
"FTTN network cannot be unbundled..[because] only around two hundred, as compared to the ten thousand or more served from an exchange. It is economically viable for a competitor to invest in putting its electronic equipment into a Telstra exchange but not a node."
The consortium claims that, unlike the existing copper network, the FTTN network cannot be unbundled. "This means that Telstra will face only weak resale competition, rather than the more intense competition emerging and growing that is based on unbundled services over Telstra's copper."
It points out that Telstra has failed to consult with industry on its proposed network redesign and suggests that this is :"because Telstra has no interest in working co-operatively with the rest of the industry to upgrade Australia's broadband infrastructure. Instead, it aims to use FTTN to stifle competition."
David Bass
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