[AusNOG] Backhaul providers lobby against NBN POI proposal

Sun Nov 14 16:03:15 EST 2010

Skeeve,

Whilst I agree with many points in the concept, I think too many people have drank the cool-aide and simply are not interested in the micro and macro-economic issues which surround the effective crowding out of competitive infrastructure to ultimately deliver a political directive.

You simply have to look back at where Australia was with its last Government owned telecommunications monopoly - Telecom Australia, to understand that's it's easily possible to have world class infrastructure which, in the absence of competition, is priced at a level which was/is inconsistent with other OECD nations at the time.  Furthermore you could see many examples, where in the absence of competition Telstra delivered products which were technically hobbled for commercial gain (think 1500/256Kbps -v- 512/512Kbps ADSL maximum port speed from Telstra L2).  These products were designed not to provide the user with commercially appropriate access to the technical capability of the product, but were designed to extract the maximum return on investment in the absence of competition.  It was not until the likes of iiNet, Primus, TPG, Internode and AAPT rolled out competitive infrastructure with competitive backhaul that users in Australia actually got to see the benefit of broadband, rather than be forced to eat the **** sandwich the monopoly was feeding everyone.

NBN 2.0 is an incredibly dangerous cocktail of unchecked political directive, without the transparency, accountability and consultation we were promised.  This project has already proceeded without a business plan and a sincere model or cost-benefit analysis to understand it's impacts on the country's productivity and accessibility to affordable broadband solutions.  Everyone agrees that at a Layer 1 level it is a technically superior network for fixed line services, however like everything the devil is in the detail and that sits as L2 and beyond. 

Regrettably many people are simply dismissing the views and opinions of competitive infrastructure owners as having a 'vested interest'.  I find this rather insulting and at the same time as ironic.  Insulting because it is only with the investment of the competitive infrastructure providers that has seen non-infrastructure providers flourish with new and exciting product offerings.  Insulting as IMHO those who have invested in competitive infrastructure  possibly have the best understanding of the value it creates for others.  I find it ironic as the people with the biggest vested interest is those who haven't risked infrastructure investment but those whose political career depends on the success of NBN 2.0 seem to escape such claims.

Regardless of peoples assertions, I can't remember many (or any) times when every single competitive infrastructure based carrier (and the respective industry associations), including Telstra, lined up and provided a comprehensive and concerted response which highlighted how the 14 PoI proposal disadvantages consumers, providers and competition.  I would strongly encourage people read the responses to gain a better understanding of why this is a recipe for disaster.

http://www.accc.gov.au/content/index.phtml/itemId/952292

Within 12 months Mike Quigley went from "we will absolutely not overbuild the competitive carrier infrastructure.  To do so would be a waste of national resources!" to now proposing to overbuild.  I wonder what other principles they are prepared to compromise for the sake of this project?  So far it's transparency, cost-benefit analysis, delivering a commercial return, tax payer contribution of no more than $4.7B, overbuilding to name just a few.

As I'm now moving out of the telco landscape I will leave everyone with one of my favourite lines and it's particularly pertinent wrt NBN 2.0 and that is...

"Be careful what you wish for... you might just get it!".

[b]

PS:   I expect that the AAB will be calling for the Independents to support Sen. Turnbulls Private Members Bill this week in an endeavour to get *some* transparency and accountability into this Enron-esque "black box" that is the NBN 2.0.

> -----Original Message-----
> From: ausnog-bounces at lists.ausnog.net [mailto:ausnog-
> bounces at lists.ausnog.net] On Behalf Of Skeeve Stevens
> Sent: Friday, 12 November 2010 3:21 PM
> To: Kai; ausnog
> Cc: ISOC-AU Members Discussion List
> Subject: Re: [AusNOG] Backhaul providers lobby against NBN POI proposal
> 
> Thing is... everyone is going to lobby against something if it affects their
> business model.
> 
> I'm not happy about the competitive backhaul being overbuilt, but I care just
> a little more about the regional population and them getting a fair go and
> equal services.  It is one of the reasons I put my hat in the ring and became a
> Director of the Internet Society - end users are the heart and soul of the
> internet - in this country and everywhere.
> 
> Originally NBNCo was not going to overbuild backhaul, and have some 100-
> 200+ PoI's, but then RSP's would probably cherry-pick which PoI's they would
> connect to... mainly due to cost issues and the expense involved in backhaul
> from the far regional pops.... which would raise the costs for the regional
> population. This is unacceptable.
> 
> I am sympathetic to the backhaul providers... and maybe there is some sort
> of middle ground where NBNCo bought or leased their infrastructure, but
> the needs of regional Australians should come first - and NBNCo should be
> applauded for a model which makes those people equal to metro folk.
> 
> There are whole vertical markets which are going to be affected by the NBN:
> - Greenfields estate infrastructure builders
> - Developers who have invested in infrastructure in their MDU's
> - Providers who deliver outsourced services into accommodation venues
> (like Universities), Aged Care, and other sites who may be overbuilt
> 
> And we have many customers who are in the above areas and I understand
> that they've built businesses (we've helped them!) around these services
> which may now be in jeopardy - but I have been advising them that while it is
> good to get together in lobby groups and associations and lobby for what
> they see as their rights, make sure they are diversifying their businesses as
> well - because if they lose then they're out of business.
> 
> Personally, I am 100% for the NBN.  I believe it is like a 16 lane highway being
> delivered into every home and business.  The internet runs in one of those
> lanes... and just like we expect the federal government to build highways - it
> is our job to build businesses that run over that highway.
> 
> Some people say they don't want it... I believe it doesn't matter... every
> home should be connected so that the next owner, or tenant can use it if
> they like - everyone should have the choice and it doesn't harm anyone
> having the option there.  Don't want it - don't order a service on it.
> 
> A lot of people say that landline based services are on the decline and
> wireless is on the increase and that young people would more likely have 3G
> or wireless technologies than a cable in their house.... I agree - to a point -
> based on today's technology offerings.
> 
> But if you can make a phone call and plug your PlayStation 5 into the NBN
> ONT and get a service with Sony Online and download games and participate
> in a dedicated low-latency high-speed gaming network - then 3G internet @
> home or not... I think this is the amazing sort of future we need to dream
> about.  Telstra today is coming up with lots of ideas with the T-Box and other
> things.  This is what we need to be thinking about - what can we use it for...
> how can we improve the lives of people - eHealth, Education, Entertainment,
> Communication.... the possibilities are limitless.
> 
> There are so many ideas that have been coming up in meetings with clients
> that may be able to be run over the NBN I am just amazed.  We need to think
> about what is possible and stop being so self interested in our own needs of
> today, and look forward on how we can improve everything to all of us.
> 
> ...Skeeve
> 
> (Not speaking as an ISOC-AU director, but clearly my opinions are obvious)
> 
> --
> Skeeve Stevens, CEO
> eintellego Pty Ltd - The Networking Specialists
> skeeve at eintellego.net / www.eintellego.net
> Phone: 1300 753 383, Fax: (+612) 8572 9954
> Cell +61 (0)414 753 383 / skype://skeeve
> www.linkedin.com/in/skeeve ; facebook.com/eintellego
> --
> eintellego - The Experts that the Experts call
> - Juniper - HP Networking - Cisco - Brocade - Arista - Allied Telesis
> 
> 
> > -----Original Message-----
> > From: ausnog-bounces at lists.ausnog.net [mailto:ausnog-
> > bounces at lists.ausnog.net] On Behalf Of Kai
> > Sent: Friday, 12 November 2010 1:20 PM
> > To: ausnog
> > Subject: [AusNOG] Backhaul providers lobby against NBN POI proposal
> >
> > Comments, anyone?
> >
> > Backhaul providers lobby against NBN POI proposal
> > http://itnews.com.au/News/238290,backhaul-providers-lobby-against-
> nbn-poi-
> > proposal.aspx
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