This morning’s announcement is quite simply the most inspiring and visionary policy statement I have heard.
Since I was elected in 1996 I have been arguing the case for broadband.
This was very frustrating through the years of the Howard Government when I heard statements like ‘Australians weren’t ready for broadband’ and observed Telstra inhibit availability of and stifle the roll-out of higher broadband services through their monopolistic grip on the market. Combined with the nightmares that the pair-gain riddled copper network continues to inflict, Australia lost years in the race to be digitally enabled and ready for the 21st century.
So the Rudd Government decision to establish a new company to build and operate a new wholesale-only, structurally separated fibre to the home National Broadband Network is a dream come true.
The policy leapfrogs a generation of fibre to the node (fibre/copper) network which in turn removes the complications of the existing flaws and blockers (some million or so pair gain systems) that remain in Telstra’s copper last mile! Hooray for that.
I was struck by the relative importance of this announcement for a couple of reasons:
- First, the sheer magnitude of the investment, $43 billion dollars ensures it is the biggest single, therefore historical, nation building investment.
- Second, it ushers in a genuinely exciting era where we are now able to set our vision higher still for the uses of the network in health, education, creative digital industries and the vast range of software and online services. In fact we can set our sights higher than anyone else in the world! Who ever thought one day we would e saying that! There is a complementary policy now required to ensure that all these sectors are driven forward, with a comprehensive ICT industry policy needing to sit at its heart.
- Third, the government has acted to go straight to fibre to the home rather than take the intermediate step of fibre to the node. FTTN was as far as commercially constrained investment could stretch, but it did not create a clear path for that last step of fibre to the home.
- Fourth, Creating a new, structurally separated, wholesale network combined with strong regulatory reforms for the existing network is smart. It will allow competition to drive prices down for consumers and service quality up right away.
- Finally, how often do you get the PM, the Treasurer, the Finance Minister and the Communications, Broadband and Digital Economy Minister lining up together for a policy announcement!
It’s a good day for Australia.
Kate Lundy
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This is indeed a very positive direction. Perhaps as part of the work we could also look at the issue of charging for access based on volume rather than capacity. There’s really no justification for domestic traffic being charged on the basis of volume and looking at alternatives could very likely lead to enhancing the opportunities that this technology brings to Australia.
Cheers.