Opel funding may be at risk: IDC

THE $900 million in Federal funding for the Opel consortium to build telecommunications infrastructure in the bush may be at risk of being cut because of Telstra’s plan to switch on its ADSL2+ network, according to research group IDC.

The group says that inflationary pressures, and the Rudd Government’s commitment to trimming Federal budgets, means the Commonwealth might decide against going ahead with the funding plan.

It says that the Telstra decision to switch on ADSL2+ in 900 exchanges nationwide means that rural and regional telecommunications will be substantially improved regardless of the Opel funding plans.

“We believe that the announcement from Telstra to activate their remaining ADSL2+ ready exchanges as a result of Ministerial assurance and the Government’s requirement to cull more than $10 billion dollars of funding are related,” said IDC telecommunications program manager David Cannon.

“As a result the Opel Pty Ltd funding will potentially be a casualty of larger macro economic inflation management processes,” he said.

“The activation of the ADSL2+ exchanges gives regional and rural communities metro-like broadband services and will counterbalance any negative public sentiment should the Opel funding be withdrawn,” said Cannon.

Opel is a joint-venture between Optus and Elders.

But with Optus already saying will not build its 3G network to cover 96 per cent of the population – instead rolling out only to major metropolitan and regional areas – and Vodafone apparently under pressure to reassess its own 3G plans, IDC says a lack of competition in the bush will mean continued higher prices for regional and rural Australia.

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Regional communications review begins

THE Rudd Government moves to assess communications services in the bush has begin, with its Regional Telecommunications Independent Review Committee beginning a convening a nationwide series of public meetings.

The Committee, chaired by eye surgeon and former Australian Medical Association president Bill Glasson, held its first public meeting in Perth yesterday and will travel across the country to 19 destinations to hear from regional, rural and remote communities on telecommunications issues.

“The Committee is encouraging individuals, businesses, community and industry organisations, education, health and government service providers, carriers and others to contribute their views to the Review by attending the public meetings,” Dr Glasson said.

“The Committee’s ability to provide sound advice to the Australian Government on areas needing attention depends on the views of those living in Australia’s regional, rural and remote communities.”

The committee’s consultations will be conducted through until May, and a report on communications in the bush will be handed to the Minister for Broadband, Communications and the Digital Economy Stephen Conroy in August.

“This will enable the Committee to take into account other Australian Government policies that will improve regional telecommunications across Australia, such as the National Broadband Network which will bring fibre-to-the-node broadband services to 98 per cent of the population,” Senator Conroy said.

Dr Glasson, who is also a member of Government’s Northern Territory Indigenous Taskforce, spends a considerable amount of his time in the bush treating infectious eye diseases and performing life-changing cataract operations.

Other committee members include National Farmers Federation telecommunications specialist Mark Needham; Queensland cattle station owner Bruce Scott; Northern Territory lawyer Josephine Stone; and Victorian agriculturalist Alexandra Gartmann.

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Opel pays $65m for Wimax spectrum

JOINT-venture regional broadband provider OPEL has shelled out US$65 million to acquire Austar’s 2.3GHz and 3.5GHz spectrum to set up its national WiMAX voice and internet service.

OPEL is the joint-venture company between Optus and Elders which won $958 million in Federal funding last year to assist the construction on a broadband network covering rural and regional Australia.

Access to the Austar licensed spectrum will allow the OPEL Venturers to build a state-of-the-art WiMAX network which will keep pace with the developments in international standards.

The OPEL network will ensure that regional Australians have access to a broad range of world's best broadband access technologies including WiMAX and ADSL2+.

The OPEL venture has been incredibly quiet since it was awarded the Federal funding last year. Even the $65 million acquisition of critical spectrum from Austar went unannounced (it was left to Austar to trumpet the sale.)

The awarding of the funding has been fraught with controversy and is now the subject of a Federal Court case between Telstra and Government.

The funding had consisted of $600 million Broadband Connect Infrastructure Program funding which the joint venture bid for. But it also included an additional $358 million in additional funding to extend the regional network that Telstra has cried foul over – saying it wasn’t given a chance to bid for the extended network.

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Conroy postpones CDMA closure

TELSTRA will keep its CDMA mobile phone network operational for at least three months longer than its planned January 28 closure after the Rudd Government said it was unhappy with its replacement network.

Communications Minister Stephen Conroy said it was not yet possible to “declare equivalence” between the CDMA coverage and the Next G network that replaces it – a condition of allowing Telstra to shut down the ageing CDMA system.

“I have notified Telstra today that at this point in time I am not in a position to declare equivalence between the Next G network and the CDMA networks,” Senator Conroy said.

“Telstra will provide me with advice within two weeks on how they will address the issues that have been identified, and report to me on the rectification to enable me to reconsider this matter.

“Telstra have advised me that this can be done by 28 April. This seems reasonable.”

Senator Conroy said that a report from the Australian Communications and Media Authority (ACMA) had found that while the coverage footprint of the Next G network was the equivalent of the CDMA system, some Next G handsets did not provide equivalent coverage.

“I appreciate that Telstra has been very active in working with customers affected by this situation, including exchanging handsets in genuine cases where this is required to give them equivalent coverage,” Senator Conroy said.

“I have made it clear to Telstra that it should continue to do everything possible to ensure that customers are using the correct Next G equipment. This should include replacing handsets at no financial penalty in genuine cases.”

Telstra Country Wide Group Managing Director Geoff Booth accepted the decision to postpone the CDMA closure and welcomed Senator Conroy ruling that the Next G Network provided equivalent network coverage footprint to the outgoing CDMA network.

“We have been on a path to resolve customer issues by 28 January and we were confident we would meet our deadline,” Mr Booth said.

“The Minister has made a different assessment but we are very pleased that he has given us a clear goal for closure, a process to get there, and a clear message to CDMA customers that they need to move quickly.”

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Farmers call to action on CDMA

THE National Farmers Federation has made an urgent call to its members for feedback on coverage in the bush of Telstra’s new 3G network – and stands ready to fight the CDMA closure if coverage proves patchy.

Communications Minister Stephen Conroy will make a decision by January 21 on whether to allow Telstra to close its CDMA network – which is used predominantly in rural and regional areas.

Telstra wants to shut the network down on January 28. But Telstra’s licensing conditions state that the company must continue to operate the CDMA network until its 3G coverage is “equivalent or better” that CDMA.

Senator Conroy this week received a report on Telstra 3G network coverage from the Australian Communications and Media Authority (ACMA). He says he still wants to hear feedback from users before making the decision.

The issue is shaping to be the first big test of Senator Conroy since the election. On the one hand, Telstra is applying pressure to be allowed to switch off CDMA because it will save the company millions.

On the other, the NFF – and people in regional areas generally – are wary of the switch, and are already annoyed that the consultation process has been hampered by a lack of 3G network hardware.

As late as last month, the NFF was lobbying Government to force Telstra to keep the CDMA network operational. It is a conducting a new survey of its membership to see things had improved.

“Realistically, farmers haven’t had much time to get, and test, the new hardware to know whether 3G is up to scratch – especially with the Christmas period and other priorities... i.e. for those farmers able to get a crop during the current drought, they’ve been busy harvesting,” the NFF said in a statement.

“We are now re-surveying farmers – through our member organisations – to assess not only 3G coverage, but the service, given the new hardware is now available.”

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We’ll proceed without Telstra: Tanner

THE Rudd Government was unfazed by Telstra blunt rejection of plans to build a national broadband network based on joint public-private funding and ownership.

Newly sworn-in Finance Minister Lindsay Tanner has told ABC Television the Labor Government would proceed with the $4.7 billion plan for the national network with or without Telstra.

And the Government’s new Minister for Broadband, Communications and the Digital Economy, Stephen Conroy, said Labor remained committed to building a national fibre-to-the-node network.

Senator Conroy said government hoped to complete the tender process to select partners to build the network by the middle of next year.

“It will be open access, promote competition and put downward pressure on consumer prices,” Senator Conroy said. “We will hold an open and transparent process to determine who will build the network with our ambition being to complete the process by the end of June next year,”

“We expect that there will be much public commentary, jockeying and lobbying from parties as they work to convince the Government that they are best placed to build the new network and seek the terms that are most favourable to them.”

Labor promised in March that it would contribute $4.7 billion in public money toward a public-private national “open access’’ network. Government will issue tenders next year seeking proposals from the private sector to build the network.

But Telstra chief executive Sol Trujillo last week last week rejected the plan, saying the company would only participate in projects that “we own and control.”

Mr Tanner said the Government’s plans were not contingent on Telstra taking part.

“The policy we put forward some months ago is a position that still stands. We are going to proceed,” Mr Tanner said.

“It is Telstra’s choice as to what role they want to play or not,” he said.

Government would wait until seen private sector proposals as part of the tender process before deciding how to structure the network.

Mr Tanner said the policy had been kept as flexible as possible so that the private sector could develop new ideas for implementing a cost effective and technologically efficient network.

“We are going to proceed with the position that we put to the Australian people,” Mr Tanner told the ABC Inside Business program.

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Google confirms wireless spectrum bid

SEARCH leader Google has confirmed it will participate in the US Federal Communications Commission’s spectrum auction – underlining the company’s interest in entering the wireless voice and data device markets.

As part of the US’ mandated transition to digital television, the 700 MHz spectrum auction – which begins January 24, 2008 – will free up spectrum airwaves for more efficient wireless internet service for consumers.

Bidding for the spectrum will start at a reserve price of US$4.6 billion (A$5.2 billion). Google announced it will enter the auction without the assistance of a partner. Some industry observers had thought the company would partner with a telecommunications firm for the auction.

The auction stipulates that part of the spectrum be used for open access purposes – under which the winning bidder is compelled to give customers the right to download any application they want on their mobile device and the right to use any device they want on the network.

“We believe it's important to put our money where our principles are,” Google chairman and chief executive Eric Schmidt said. “Consumers deserve more competition and innovation than they have in today's wireless world.”

“No matter which bidder ultimately prevails, the real winners of this auction are American consumers who likely will see more choices than ever before in how they access the internet,” Mr Schmidt said.

The 700MHz spectrum is attractive to communications companies as it wavelength travels long distances and easily penetrates obstacles like concrete walls. This means the spectrum requires fewer communications towers and is therefore cheaper.

Regardless, a national wireless network would be expected to cost the owners an additional US$7 billion.

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Internet capacity problems by 2010: Study

CONSUMER and corporate internet usage demands could outstrip global network capacity by 2010 if billions are not invested now, a new report reveals.

The findings of the Nemertes Research study indicate that by 2010, the Internet’s capacity will not likely accommodate user demand and users could increasingly encounter internet “brownouts” or interruptions to the applications they’ve become accustomed to using. It may take more than one attempt to confirm an online purchase or it longer to download the latest video from YouTube.

“The immediate impact of the inadequate infrastructure will be to slow the pace of innovation, Nemertes warned. The next Amazon, Google or YouTube might not arise – not from a lack of user demand, but because of insufficient infrastructure preventing applications and companies from emerging,” the report said.

The investment required to bridge the gap between growing demand and capacity was between US$42 billion (A$48 billion) and US$55 billion for the US market alone. And this required investment is above and beyond the US$72 billion that service providers are already planning to invest.

The new study, from Nemertes Research, found the required investment globally was estimated at US$137 billion. The research, titled to “The Internet Singularity, Delayed: Why Limits in Internet Capacity Will Stifle Innovation on the Web” indicates that Internet access infrastructure, specifically in North America, will cease to be adequate for supporting demand within the next three to five years.

“This groundbreaking analysis identifies a critical issue facing the Internet – that we must take the necessary steps to build out network capacity or potentially face Internet gridlock that could wreak havoc on Internet services,” said Internet Innovation Alliance co-chairman Larry Irving.

“It’s important to note that even if we make the investment necessary between now and 2010, we still might not be prepared for the next killer application or new internet-dependent business like Google or YouTube,” Mr Irving said.

Nemertes Research president and senior founding partner Johna Till Johnson said: “This is the first study to independently model both Internet capacity and demand.”

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USO should cover broadband: ACS

THE Australian Computer Society has called on Government to include minimum broadband service standards under the terms of its Universal Service Obligation (USO) requirements.

The ACS said in a submission to the Department of Communications, IT and the Arts’ (DCITA) review of the USO that expanding the requirements to include broadband would help reverse the “digital divide”.

The USO is a set of requirements imposed on telecommunications carriers to ensure anyone who wants a phone service has access to it, regardless of where they live. It also covers services like ensure adequate numbers of payphones and emergency numbers like 000.

The ACS said the USO review should consider the way mobile communications is developing as a universal information platform with significant potential for remote internet access.

Regardless of which party wins the upcoming federal election, Australia needed a USO that encompassed broadband and mobile technologies, according to ACS Telecommunications Board director, Professor Reg Coutts.

“Australia faces a growing digital divide, which is being exacerbated by the huge disparity between the quality of telecommunications services provided in our cities and those available in rural and remote parts of the country,” Prof Coutts said.

“The USO was written at a time when a standard fixed line service was all anyone needed, but times have changed.”

Prof Coutts said the long debate over Telstra’s privatisation had delayed “any meaningful action” on broadband for several years, and that the issue needed to be addressed in the next six to 12 months for Australia to maintain global competitiveness.

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Carriers’ security confidence grows

A NEW survey from IBM has revealed security concerns among telecommunication carriers had reduced dramatically in the past two years.

The results of the 2007 State of Security for Global Telecommunications Carriers survey mark a turning point in a competitive industry where the delivery of new services often has come at the expense of security considerations.

A key finding in this year's report reveals that only 36 per cent of survey respondents said security concerns were hindering their rollouts of Internet Protocol (IP) based service bundles including voice, video and data. That number is down sharply from 2006 when 55 per cent of carriers said security concerns were hindering delivery of new services.

“This survey shows what the market is already experiencing from recent mergers and acquisitions, including Verizon/Cybertrust and IBM/ISS: that security is a key ingredient for carriers as they move into next generation services and solutions,” said Current Analysis senior research director for telecom services Counse Broders.

“Clearly, those providers without a security solution in place risk losing their competitive edge.”

Security concerns still plague the telecom market especially in the area of next-generation, IP-based networks (NGNs).

NGNs represent a major evolution in telecommunications involving the convergence of voice, data and video onto one network.

The 2007 Global Telecommunications Carrier survey revealed that the wholesale migration to next-generation, IP-based architectures is imminent, with almost 85 per cent of respondents indicating that they will roll out this kind of architecture in the next five years.

However, fewer than half of respondents (46 per cent) said their companies had a strategy in place for mitigating security risks posed by NGNs.

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Google offers US$10m Android prize

SEARCH giant Google has offered a US$10 million prize for the developers who build mobile applications for its new Android mobile phone operating system.

The company said the Android Developer Challenge was designed to support the developer community and to spark innovation on the platform. Cash prizes ranging from US$25,000 to $275,000 will be awarded to developers whose applications are picked by a panel of judges.

“We've built some interesting applications for Android but the best applications are not here yet and that's because they're going to be written by developers,” said Google co-founder and technology president Sergey Brin.

“We'd like to reward these developers and recognise them as much as possible.”

Google director of mobile platforms Andy Rubin said the company was challenging developers “to stretch their imaginations and skills” to leverage the full capabilities of this new platform and to create something amazing.

Google announced Android a week ago through the Open Handset Alliance, a group of more than 30 technology and mobile companies backing the Android open source platform.

The OHA includes Google, China Mobile, LG Electronics, Intel, eBay, Motorola, NTT DoCoMo, and Qualcom.

Last week, the Alliance released an early look at the Android SDK through a developer’s blog.

The US$10 million total in the Android Developer Challenge will be distributed equally between the Android Developer Challenge I and II. Submissions for Challenge I will be accepted from the beginning of January to March 3, 2008, and the 50 most promising entries will be recognised by end of March, with each receiving US$25,000 awards to fund further development.

These 50 entries will be eligible for more funding with a further ten awards worth $275,000 each, and another ten worth $100,000 each.

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Conroy lashes bush broadband plans

THE only promise Federal plans for broadband in the bush will deliver will be “city-comparable prices” for second rate services, shadow communications minister Stephen Conroy says.

Under current plans, Senator Conroy says that by mid-2009 Australia could have wasted $1 billion of taxpayer funds on a sub-standard, two-tier broadband network.

Writing in The Australian newspaper, Senator Conroy attacked the government’s broadband plans, in particular its awarding $958 million in support to the Optus-Elders bush phone joint-venture.

Communications Minister Helen Coonan had misled regional Australians about the likely speed of the OPEL wireless services, Senator Conroy said, quoting speeds only attainable with optimum conditions and without factoring the vast distances and difficult topographies of some remote areas.

The Wimax solution was an inferior option. Senator Conroy also attacked the Minister over the handling of the Broadband Connect tender won by OPEL. He said only OPEL – and not other bidders like Telstra – had been informed that money beyond the $600 million earmarked for the project could be written into bids.

Labor is proposing spending $4.9 billion on a fibre to the node network that would provide superior speeds to both city and regional customers. He said the FTTN proposal would not only give the bush comparable pricing, but comparable services as well.

“Labor has spent the past five months travelling around Australia talking about broadband. Australians in rural and regional areas know the Government is locking them into a sub-standard, second-class system,” Senator Conroy said.

“Far from abandoning broadband in rural and regional Australia, Labor is committed to turning around the poor quality of telecommunications for all Australians, including those in the bush,” he said.

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eBay cuts strike price for Skype deal

ONLINE auction site eBay has cut as much as A$1.36 billion off the potential A$4.9 billion it agreed to pay for VoIP phenomenon Skype when it acquired the company in 2005 because of under performance of the unit.

The write-down in the Skype sale prices came as the company restructured senior management at the VoIP unit, with Skype co-founder Niklas Zennstrom stepping down as CEO of the eBay Skype unit.

The management changes and cost write-downs are seen as an admission of the lackluster performance of the Skype acquisition.

eBay announced that it had paid about US$530 million (A$600 million) to settle all of its future obligations under the earn-out agreement signed with certain Skype shareholders when eBay acquired Skype in 2005.

The earn-out agreement provided for payments of up to approximately US$1,700 million (A$1,925 million) based upon specific active user, revenue and gross profit targets that were to be achieved in 2008 and the first half of 2009.

“eBay believes that the (A$600 million) payment is reasonable given the progress and anticipated rapid growth of Skype's active user base,” the company said in a statement.

Having stepped down as Skype CEO, Mr Zennstrom will become non-executive chairman of the Skype board of directors, while eBay chief strategy officer Michael van Swaaij will become Skype’s acting CEO until a permanent successor is found.

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Australia lags on Broadband: OECD

THE latest OECD report card on broadband access has found Australia lags other developed nations with slow internet speeds and high access costs.

The Organisation for Economic Cooperation and Development found Australia’s download speeds were the second slowest of any OECD club member – slower than Hungary and Turkey, and only marginally faster than last-placed Slovak Republic.

The OECD Communications Outlook 2007 report also found a bundle of typical telecommunications services – including fixed-line, mobile and local and long distance calls – were far more expensive in Australia than comparable economies in the OECD.

In particular, the report found typical communications bundles used by small businesses were especially costly.

Although Telstra’s internet download speeds have improved since the data for the report was compiled in 2006 (top speeds have jumped for 1.5Mbps to about 24Mbps), countries like Japan and South Korea are now offering customers speeds of up to 100Mbps.

The report found that overall investment continued to rise and consumers were generally paying less for their communications services among OECD countries.

It found that 60 per cent of the OECD’s 256 million internet subscribers had access to broadband connections at the end of 2005.

The move to introduce broadband services has presented challenges for incumbent communications service providers.

“(Broadband) offers an additional revenue stream for telecoms operators to make up for their declining revenues from voice communications, which still make up the bulk of their revenue,” the OECD report said.

“Broadband remains one of the main growth areas for telecoms firms and one of their key challenges, looking ahead, will be to decide how much and how soon they should invest in next-generation networks, such as fibre-optics, rather than continue their investments in traditional copper networks,” it said.

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Optus offers first phone-broadband cap plans

NUMBER Two phone company Optus has set its sights on the fixed-line telecommunications market with the launch of capped monthly plans that bundle voice and broadband services.

For one fixed-price a month, the company's new Optus Fusion Cap gives customers unlimited local and national landline calls, unlimited calls to Optus mobiles, and a broadband connection with no excess download charges.

The capped packages – which range from $69 to $99 – include the cost of line rental.
Optus Fusion will be available to customers on the Optus Direct (Unbundled Local Loop) network and on Optus' cable network.

The Optus Direct service is planned to reach 366 exchanges by the end of the 2008 financial year. When it is completed, 3.9 million Australian homes will be able to take advantage of the new Optus Fusion caps.

The $69 cap plan gives customers the telephony package with 2GB of broadband data, while the $99 cap gives the customer the telephony package, a wireless modem and 20GB of broadband download.

"Optus Fusion is a powerful demonstration that Optus is committed to offering new and existing customers sensational value, while we continue to grow our fixed subscriber base and improve our scale on the Optus network," said Optus' consumer managing director Warren Hardy.

"The fixed line market can now enjoy the type of competition that the mobile market has enjoyed for some years. Caps allow people to use their services more, for a fee that is well below what most people would be paying today," Mr Hardy said.

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New industry referee takes TIO chair

THE telecommunications industry has a new ombudsman with the appointment of former Western Australian Ombudsman Dierdre O’Donnell appointed to the chair.

Ms O’Donnell replaces the long serving John Pinnock, who was the Telecommunications Industry Ombudsman (TIO) for 12 years. She started in the role this week.

Ms O’Donnell has most recently served as the Western Australian Ombudsman, and is highly regarded in the telecommunications sector.

She has previously served as the Deputy Telecommunications Industry Ombudsman and has also held senior roles in industry regulation and the telecommunications industry.

Communications and Information Technology Minister Helen Coonan welcomed the appointment of Ms O’Donnell and acknowledged the significant contribution of Mr Pinnock.

“I am sure Ms O’Donnell’s experience and understanding of this dynamic sector, along with an ability to draw on different perspectives will serve her well,” Senator Coonan said.

“Mr Pinnock’s tenure as Ombudsman has been significant due to the growth in the size and complexity of the telecommunications industry. This has lead to greatly increased pressure on the position of Ombudsman,” she said.

“During this period of change Mr Pinnock has maintained a strong focus on investigating, resolving and determining consumer complaints with great dedication and commitment.”

The TIO is a free and independent dispute resolution scheme for small business and residential consumers with unresolved complaints regarding their telephone or internet services. The TIO has the authority to make decisions that are legally binding upon telecommunications companies.

Ms O’Donnell said that she was looking forward to the challenge of improving outcomes for telecommunications consumers while at the same time helping to increase the standard of complaint resolution within the industry.

“Telecommunications is one of our most dynamic industries and that rate of change brings significant challenges for providers and consumers alike,” Ms O’Donnell said.

“The TIO has proved that it has an important part to play in the relationship between consumers and the industry. I am looking forward to ensuring that the TIO maintains its high standard of professionalism.”

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Spending grows as telco’s look to IPTV

WIRED communications infrastructure spending will rise in 2007 to its highest level since 2002, with most of the additional global spend attributable to new IPTV investment.

California-based research group iSuppli says telecommunications companies will spend nearly US$41 billion on equipment this year, a modest rise of 1.6 per cent.

The growth in total equipment spending is small, and represents a slowdown compared to the 10.7 per cent increase in 2006 and 8.3 per cent in 2005.

But with telco revenue growth expected to increase on ly marginally this year, iSuppli says spending increases have been directed at new revenue opportunities.

“The major reason for the slowdown is focused spending and a ‘pay-as-you–grow’ strategy among telcos,” according to iSuppli’s principal analyst for IPTV, broadband and digital home, Steve Rago.

“The marginal increase in 2007 spending is being driven largely by telcos’ purchases of equipment to deploy Internet Protocol Television (IPTV) services. iSuppli estimates $9 billion will be spent on IPTV-related communications equipment in 2007.”

The major motivation for companies to invest in IPTV infratstructure is the flagging fortunes of the their core voice communications businesses, Mr Rago said.

The telecommunications companies have been losing an average of 4 per cent annually from their subscriber base, and more than 4 per cent per year from voice revenue, he said.

The phenomenon is universal, with no region and no telecommunications company unaffected.

“The telcos hope their massive investments in IP broadband networks and IPTV will pay dividends in terms of a new source of revenue from providing video and other multimedia services to consumers,” Mr Rago said.

Global IPTV subscribers will soar to 105.8 million in 2011, rising at a stunning 98 per cent compound annual growth rate from 3.4 million in 2006, iSuppli predicts. To serve this huge base, the telcos’ IPTV budget will have to grow to account for 20 per cent of their total capital spending by 2011, including networking equipment, software and customer premises equipment.

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Gloves come off in FTTN campaign

A GROUP of 11 telecommunications and internet companies have joined forces to counter what they say is an orchestrated Telstra campaign of misinformation on broadband, competition and regulation in Australia.

The companies – AAPT, Austar, iiNet, Internode, Macquarie Telecom, Powertel, Primus Telecom, Telarus, TransACT, WestNet and Unwired – have sent a letter of complaint to the consumer watchdog asking it to investigate whether the Telstra campaign represents misleading and deceptive conduct.

The complaint to the Australian Competition and Consumer Commission details a series of instances, including a media release, a teleconference and an email to customers where it says Telstra “has simply not told the whole truth.”

“Telstra is pushing the false impression that Australia’s regulatory regime somehow ignores its costs and legitimate business interests,” the group said in a statement.

“This is not the case, and if past performance is any indicator, Telstra is on a rampage to force both sides of politics to weaken the Trade Practices Act so it can increase prices.”

Calling themselves T4, the group has launched an education campaign called Tell the Truth Telstra that targets MPs, regulators and the public with what it call “the facts behind the state of broadband and telecommunications regulation in Australia.”

The T4 group has launched a web site at tellthetruthtelstra.com.au to counter some of the claims coming out of Telstra’s own campaign web site, nowwearetalking.com.au.

“As the nation debates the future of broadband, it is time to set the record straight about communications services in this country and the central role of competition in satisfying consumer demand.

“With an election looming, Telstra has turned up the volume and strayed a long way from the facts,” said the T4 group.

The group says that since government introduced competition in Australia, competitors had pioneered innovations like internet access for home and business, capped plans for mobile, and fast broadband using ADSL2+ and 3G services.

It says that “time and again” Telstra has only introduced new services and lower prices when it was forced to match the competition.

“Now Telstra is acting as though it can hold the country to ransom – positioning itself as the only company that can deliver Fibre-to-the-Node (FTTN) and demanding to be allowed to increase prices before it will do so.

“The regulator has told a Senate hearing that Telstra had ‘walked away from upgrading its network to a FTTN because it could not get a green light to artificially inflate the price for existing broadband services in order to be able to justify charging higher prices for access to the new network’.

“Pretty much everyone but Telstra is united in the desire to create better broadband through effective competition rather than watered-down regulation,” the group spokesman said.

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ACS enjoys broadband view from the fence

THE Federal election is months away, but it’s already too close to call. So the Australian Computer Society is taking a punt on both parties.

The Coalition government and its Labor opposition might have spent the day savaging each others policies for rolling out a nationwide broadband capability, but the ACS liked what it heard. And it has backed them both.

Forget the stark differences in their approach, the ACS says they’re both right, and is happy enough that there is a debate at all.

The peak professional body for the ICT sector took a seat on the fence – where it could get a comfortable view of the debate – and “welcomed comments on the need for investment into broadband infrastructure from the Minister for Communications, Information Technology and the Arts, Senator the Helen Coonan and Shadow Minister for Communications and Information Technology, Senator Stephen Conroy.”

“The important point is that equitable and affordable access to broadband is achieved – how that’s achieved is of secondary importance in our view,” ACS chief executive Dennis Furini said.

“We are pleased that both sides of politics maintain a focus on broadband access as a critical national issue and we commend them for moving the issue of broadband infrastructure up the agenda,” he said.

Mr Furini said high speed broadband infrastructure would have a “catalysing effect” on content, product and service innovation.

While welcoming the current debate, the ACS has a more ambitious view of what “high-speed” means – an order of magnitude higher than either political party.

It wants 30Gbps minimum to every Australian household by 2015.

Labor said this week it would invest up to $4.7 billion in a joint-venture with private sector companies to roll out FTTN-based (fibre-to-the-node) 12Mbps broadband access to 98 per cent of the population. The other two per cent – in rural and remote areas – would get access to improved speeds using more appropriate technologies.

Labor says it will pay for the plan by drawing down $2 billion from the Communications Fund, as well as Telstra dividends from the Future Fund, and receipts of further sell-down of Government’s remaining 17 per cent stake in Telstra.

The Coalition recognises the need for improved broadband speeds, but has not mandated what speeds should be and says the market should decide where investments go and what technology – DSL, fibre, wireless or satellite – should be used.

The ACS says it doesn’t care who oversees the roll-out of broadband. It just wants it done.

“Mobile communications and hardware convergence will create new user markets and a market for software and content – areas where Australian ICT is strong and provides leading solutions,” Mr Furini said.

“However without a consistent, reliable, high speed national broadband infrastructure that employs the latest technologies, Australia’s economic growth will suffer,” he said.

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ACCC dismisses Telstra broadband “bluster”

THE competition watchdog has dismissed as “noise and bluster” Telstra’s claims that regulatory uncertainty in the industry was hampering investment and causing a broadband drought in Australia.

Australian Competition and Consumer chief Graeme Samuel told a telecommunications conference in Sydney yesterday that far from suffering drought conditions, broadband in Australia was booming.

Mr Samuel said Telstra claims that Australia was lagging the world in broadband take-up were disingenuous, pointing to Bureau of Statistics numbers that say more than 1.8 million broadband customers were added from March 2005 to September 2006 – growth of more an 50 per cent in 18 months.

He argues that too much is made of OECD figures that say Australia ranks 17th out of 30 developed countries for broadband take up.

The same survey found that Australia’s rate of growth in broadband subscribers is the second fastest in the OECD, suggesting it is now moving up the rankings, Mr Samuel said.

Increased market competition had spurred carriers – including Telstra – to roll-out ADSL2+ services, which were now available to about 46 per cent of households.

“In addition, mobile broadband is now available to 98 per cent of the population,” Mr Samuel said.

“This suggests broadband is booming,” Mr Samuel said. “But despite this, Telstra argues we are in a ‘broadband drought’.”

Addressing the annual Australian Telecommunications User Group (ATUG) conference in Sydney, Mr Samuel also chastised Telstra over its claims that regulatory uncertainty made it difficult for the company to invest in higher-speed broadband services.

Telstra has said regulatory problems meant it was unable to roll-out ADSL2+ technology to exchanges that did not already have an ADSL2+ competitors’ equipment installed.

“Telstra argues that without regulatory certainty, it cannot offer ADSL2+ in exchanges where its competitors do not already offer this service,” Mr Samuel said.

“However there is a very easy way for Telstra to receive absolute regulatory certainty – by asking for an exemption from regulation for ADSL2+,” he said.

“Let me be perfectly clear: if the ACCC is satisfied that an exemption should be granted, it will not force Telstra to give access to its competitors to this particular service.”

“You can't get much more certainty than that,” Mr Samuel said.

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