Patrick Elliot
Shaun InguanzoTelstra: We want broadband tender
July 8th 2008 11:33
Which telco for FTTN network?
Gamer Herald knows most of you are big fans of online gaming. To enjoy lag-free online gaming, there is one crucial ingredient - Broadband Internet. There's also games, consoles, network cable and account logins, but fast internet is the brains of the entire online operation.
In the weeks ahead, the biggest broadband project in Australian history will be awarded to either the Telstra Corporation or its rival, a consortium led by Singapore Telecommunications (Optus) called Terria.
The Federal Government is willing to chip in as much as $4.7 billion to help build the Fibre To The Node (FTTN) network, which will cost an estimated $12 billion.
For fast internet; that's a lot of money!
The FTTN network will deliver speeds of up to 12-megabits per seconds to 98 per cent of Australia's population.
At present, most broadband users experience speeds of only 1.5MB per second.
The quest for lag-free gaming is only just beginning.
Telstra group managing director of public policy and communications Phil Burgess recently told a business audience in Sydney that Telstra was the well and truly prepared to build the network.
The numbers required to build the FTTN network are simply amazing.
"FTTN boxes are about the size of two moderate-sized refrigerators," Dr Burgess said.
"80,000 of those have to be manufactured either in the US or the EU - that's where you make them.
"They have to be transported to Australia ... they have to be put on trains and hauled out to 80,000 sites around this country.
"Who has the ability to do this? How many of these companies who are bidding for this have already reserved assembly lines to produce the 80,000 boxes? We have."
The problem most people have with Telstra's bullish push for the tender is the pricing structure that is likely to follow.
Naturally, Telstra will want a large return on investment when it comes to pricing access to the FTTN. Quite simply, this will mean higher prices for end users.
If the Singapore Telecommunications consortium win the tender, prices will most likely be lower, due to the shared investment costs.
The consortium will also encourage increased competition, and we all know that also means lower prices.
So what does all this mean? Telstra is currently in a fist fight with the ACCC, Australia's competition watch dog over its bid to build the network.
The ACCC is sceptical about Telstra's ability to fairly price and lease access to the network to its competitors.
In return, Telstra has accused the ACCC of unfair treatment.
The federal government recently extended the original bid deadline from June 25 by at least 12 weeks to give the bidders time to examine Telstra's existing infrastructure.
We'll watch the developments closely and keep Gamer Herald readers up to date with how the FTTN network will affect broadband access, speed and prices.
Gamer Herald knows most of you are big fans of online gaming. To enjoy lag-free online gaming, there is one crucial ingredient - Broadband Internet. There's also games, consoles, network cable and account logins, but fast internet is the brains of the entire online operation.
In the weeks ahead, the biggest broadband project in Australian history will be awarded to either the Telstra Corporation or its rival, a consortium led by Singapore Telecommunications (Optus) called Terria.
The Federal Government is willing to chip in as much as $4.7 billion to help build the Fibre To The Node (FTTN) network, which will cost an estimated $12 billion.
For fast internet; that's a lot of money!
The FTTN network will deliver speeds of up to 12-megabits per seconds to 98 per cent of Australia's population.
At present, most broadband users experience speeds of only 1.5MB per second.
The quest for lag-free gaming is only just beginning.
Telstra group managing director of public policy and communications Phil Burgess recently told a business audience in Sydney that Telstra was the well and truly prepared to build the network.
The numbers required to build the FTTN network are simply amazing.
"FTTN boxes are about the size of two moderate-sized refrigerators," Dr Burgess said.
"80,000 of those have to be manufactured either in the US or the EU - that's where you make them.
"They have to be transported to Australia ... they have to be put on trains and hauled out to 80,000 sites around this country.
"Who has the ability to do this? How many of these companies who are bidding for this have already reserved assembly lines to produce the 80,000 boxes? We have."
The problem most people have with Telstra's bullish push for the tender is the pricing structure that is likely to follow.
Naturally, Telstra will want a large return on investment when it comes to pricing access to the FTTN. Quite simply, this will mean higher prices for end users.
If the Singapore Telecommunications consortium win the tender, prices will most likely be lower, due to the shared investment costs.
The consortium will also encourage increased competition, and we all know that also means lower prices.
So what does all this mean? Telstra is currently in a fist fight with the ACCC, Australia's competition watch dog over its bid to build the network.
The ACCC is sceptical about Telstra's ability to fairly price and lease access to the network to its competitors.
In return, Telstra has accused the ACCC of unfair treatment.
The federal government recently extended the original bid deadline from June 25 by at least 12 weeks to give the bidders time to examine Telstra's existing infrastructure.
We'll watch the developments closely and keep Gamer Herald readers up to date with how the FTTN network will affect broadband access, speed and prices.
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