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<DIV
style="FONT: 10pt arial; BACKGROUND-COLOR: rgb(228,228,228); background-origin: initial; background-clip: initial"><B>From:</B><SPAN
class=Apple-converted-space> </SPAN><A title=mmc@internode.com.au
href="mailto:mmc@internode.com.au">Matthew Moyle-Croft</A><BR></DIV><BR>
<DIV>
<DIV><FONT face=Arial size=2><STRONG></STRONG></FONT></DIV>
<DIV></SPAN><FONT face=Helvetica size=4></FONT>It's understood. The
point is that your not getting a NEW local loop.</DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=2><STRONG>Do you need a new local loop?
If so Why.?</STRONG></FONT></DIV>
<DIV><FONT face=Arial size=2><STRONG></STRONG></FONT> </DIV>
<DIV><FONT face=Arial size=2><STRONG>The most fault free part of the local
loop is in many cases the oldest part of it. There are extremely few
faults in main cables between the exchange and the DA pillars.
These main cables are installed much deeper than most other
services, go through concrete manholes etc. I can tell you with
authority that many of the CAN faults are due to poor repair processes and
maintenance practices. Why because many of the repair staff
aren't backed up with timely and appropriate support. To give an
example or examples. How many times do you see driving down the road
a slave cable with a temporary joint in a plastic bag. In a lot of
cases you only see the yellow guards with grass growing up through
them? Why ? Well what happens is someone cuts a cable
because they didn't ring dial before you dig, drives over a pit in a
vehicle and breaks the lid damaging the cable, a tree comes down over
the cable etc etc etc. A telstra faulty gets a job and an
expectation of a timeline in which the fault will be cleared. He or
she drives out locates the damage, rings his dispatcher and is told to
make the site safe get the customers back on the air and fill in a report
for a contractor to come and do the proper repairs. There is a
budget which controls how many of these jobs find a contractor. The
joints sit in plastic bags in the sun which either act like a sauna and
condense water or break down and let the rain and storm water into the
cables. This can be changed by employing a "fix it he first time
policy" which is cheaper to deploy, however this does not work well with
the appoint time based system used by Telstra and legistlated by the
government. Fix it properly the first time also requires
access to resourses which doesn't sit well with staff
planning. Ie to fix a handset fault is a finite amount of time
whereas to fix a cust cable may require machinery and additional hands on
deck that can require the job is 2 hours to 2 days depending on what is
required. The question then comes down to who is really responsible
Telstra or the careless person that didn't pot hole or get dial before you
digs, or the tree clearing policy that prevented preventitive
maintenance. FTTH will face the same issues, however the
repair timeframes will be longer.</STRONG></FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV> So at some point you're going to have to start replacing
it, I can guarantee it's not going to be cheaper in a decade or two from
now. </DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2><STRONG>This is done as part of the
maintenance program or when demand renders the existing cable
inappropriate. It doesn't mean you need to replace
everything.</STRONG></FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV> So, where do you go then? </DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=2><STRONG>So I am assuming you are saying that
we should replace the whole network because a pit is broken.
That is what you are saying</STRONG></FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV>You've saved money now only to spend more later?</DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2><STRONG>That is not true, there is such a
business 101 thing called the time value of money. Why spend $1
today if you don't need to. Tomorrow the technology or a business
case may have rendered it useless</STRONG></FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV> It also doesn't solve the fact that "$150" doesn't buy
you a fix in a RIM or for people at the end of loop too long. </DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2><STRONG>I am glad we have finally found some
area of agreement.</STRONG></FONT></DIV>
<DIV><FONT face=Arial size=2><STRONG>Now if you have read what I have
written on many response on the list, that is the area where we need to
focus. I have been totally consistent on that for years. But
it doesn't mean we need to replace the entire network. It also
doesn't mean that Tesltra should be the only option past the rim.
Each of these areas should be put out to competitive tender to be fixed
with a view to allowing open access and to a specification that will
address the needs in the future.</STRONG></FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV> For that you need FTTN at a higher cost, higher Opex and you
then have the same issues as NBN with a single entity controlling
it.</DIV></DIV></BLOCKQUOTE></DIV></BLOCKQUOTE>
<DIV><BR></DIV>
<DIV>So, good luck with the $150/port.</DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=2><STRONG>Lets say it is $300 per port which I am
told it is not. That is still a long way short or $3500 to 7500 or the
$14800 option on my previous email</STRONG></FONT></DIV>
<DIV> </DIV>
<DIV>So, you haven't answered the question. </DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=2><STRONG>If you want me to spend the time
providing you with a written template then I am available to consult. If
you list the blockers and I will reply. In saying that I did provide
some examples and solutions to some regulatory situation. I know there
are many more and I suggested a process to address them as
well.</STRONG></FONT></DIV>
<DIV><FONT face=Arial size=2><STRONG></STRONG></FONT> </DIV>
<DIV><FONT face=Arial size=2><STRONG>In my case I need a government
undertaking similar to the coalitions commitment in this area, that the
government will not destroy the value of my investment using government money
(borrowed) to do so. While you may not appreciate how confidence
destroying some of the comments regarding how Labor will legistlate to
bring Telstra to heel are, and while we may all love to hate Telstra we should
be mindful of the fact that we may be the next target. Soveriegn risk is
investment destroying. Labor have shown they don't care how
much damage they do. Look at what happened to the insulation
industry. They brought forward demand sucked in a lot of samll
operators and closed it abrupty leaving many with massive inventories and debt
with no real way of liquidating it with value and on the other side they have
destroyed the demand for the Australian manufactures of
insulation. They are about to repeat the same trick with the car
industry. Again it is business 101 stuff. Not every aspect of this
industry is about the sexy stuff like technology. In a similar way
how Conroy proposes to legistlate a force all ISP's to introduce the internet
filter. Does this explain what I am referring to. I am sure
those sitting in Telstra Optus Primus Pipe and others do. As I am of
some of the mining companies with regard to retrospective
taxation.</STRONG></FONT></DIV></DIV>
<DIV><FONT face=Arial size=2></FONT><BR></DIV>
<DIV><STRONG>regards</STRONG></DIV>
<DIV><STRONG></STRONG> </DIV>
<DIV><FONT face=Arial
size=2><STRONG>Tim</STRONG></FONT></DIV></BLOCKQUOTE></BODY></HTML>