[AusNOG] AAB Statement

Bevan Slattery Bevan.Slattery at staff.pipenetworks.com
Thu Sep 2 20:33:44 EST 2010


Hi Paul,

> Please let me know if I've paraphrased the proposal correctly - you
want to
> make the spectrum available for a reasonably-good wireless network
that reaches
> almost everywhere

Yeah - we want to deploy the right spectrum, put enough of it in a
contiguous chunk with multiple 20Mhz chunks + guard bands providing for
not just a 'reasonably-good wireless network' but a world leading
wireless network.  One that is mobile *and* wholesale only.

(satellite for the rest - a broadband fixed wireless
> safety-net-of-last-resort - providing ubiquity, but not extremely high
speed.

Yep - like NBN Co's plans.

> Leave  the commercial market to provide better connectivity and
compete with this
> new wireless network however they choose - DSL, cable, higher-speed
fixed and
> mobile wireless, fibre, just as happens now.

Not quite.  We are also saying that we believe in a fibre future.  We
(Government and Industry) needs to land on a Fttx strategy 'moving
forward'.  Whether that is in terms of coverage, cost and Government
investment, where there is a productivity or social equity return - not
a commercial return.  We are talking about as best as possible agreeing
on a fibre strategy that considers the basic principles of retaining
infrastructure based competition rather than removing it all together.
It's somewhere between 0-90%.  Just need to work out where it is.

***BACKGROUND***
You see the NBN 2.0 was completely dreamt up between the NBN 1.0
assessment team to divert the fact that NBN 1.0 was perhaps one of the
greatest examples of an ill-conceived, grossly under-budgeted,
technically untenable and practically impossible (without Telstra's
support) broadband solutions ever devised.  So, external to the
industry, the Ministers office along with DBCDE, KPMG and McKinsey had
to create a report that shielded the voters from the reality of the
horror show that was NBN 1.0, which they did by stating that none of the
respondents provided value for money.  However, having gone to the
election with an NBN promise the Government could not walk away empty
handed and could not let Telstra get away with calling their bluff.  So
the NBN 1.0 report included recommendations to the Minister that they
push fibre further than the node.  This would remove Telstra's block on
any advancements.  They spun a story that an initial equity contribution
of $4.7B, some Aussie Infrastructure Bonds which mum's and dads would
love because in the PM's words "The FttH NBN would make a commercial
return".  Well we're $26B in the hole now and with the declaration of no
commercial return anytime soon, in for the remaining $17B+ and therefore
a brand new 100% Government owned and funded fixed line monopoly.
***END BACKGROUND***

> And because the wireless network isn't
> trying to provide the fastest speeds, and doesn't have to serve every
house but only
> those that can't get anything else, it shouldn't have the scalability
problems that most
> commentators point to when comparing wireless with fibre - the
end-point
> density in urban areas is actually relatively low on average, only
having to serve isolated
> clusters, so you don't need too many towers.

Our example was a wholesale mobile wireless service providing the best
possible service to 98% of the people using 4G.  There are some great
developments happening in 4G territory.  Enough so that an old fibre guy
like me gets excited.  As for towers, well there are plenty of those
already.  What people don't realise is that most new mobile cell sites
in metro and regional are installed using Low Impact provisions under
the telco Act and not requiring 'massive towers'.  I'm not saying in
this example there will not need to be more.  You've probably missed
that this example was not looking to serve isolated clusters.  It is
looking to service ISP's/Wholesalers looking to provide a mobile
capable, high speed, wireless broadband experience to their customers.
We would expect the ISP's and their market will determine what that is.

Finally as for commentators pointing out that wireless doesn't scale as
well as fibre - they're right.  It has more contention issues than FttH,
has higher latency and for sustained high bandwidth users sitting in one
spot, would probably not be as attractive as FttH.  But wireless is
mobile, always there (on you), improving in performance, reliability,
latency, accessibility and cost to deploy.  It's is the fastest growing
market in the world and is going to continue to do so for a very long
time.  It is what people are actually delivering the hyped NBN 2.0
catch-cries of eHealth and Smart metering today and we feel it
imperative that Australia's best telco asset (the 700Mhz and 2.5Ghz
spectrum) is utilised for the most effective national purpose.

We believe a national, high speed, 4G/LTE, wholesale only network is
that purpose.

Cheers

[b]




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