#U/C: $43billion FTTH NBN

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Howie
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#U/C: $43billion FTTH NBN

#1 Post by Howie » Tue Apr 07, 2009 11:11 am

Massive news today. The government has scrapped the tendering process to build the new National Broadband Network (NBN) which promised broadband for all Australians through either a Fibre-to-the-node (FTTN) or Fibre-to-the-home (FTTH) network and unbundling the monopoly Telstra has over our network.

The government will now go it alone, and start a new company to build a $43 billion FTTH network covering up to 92pc of the population! Which will put us right up there with the best of developed countries in terms of broadband access and speeds.

It will create 25,000 jobs per year.... so my advice to you is, if you have any interest in technology and looking for well-paid work in the future, now is the time to get your Network Cabling, Network services certifications.. go do a tafe course or go through an IT training company.
NBN plan scrapped; govt seeks new partners
Mitchell Bingemann | April 07, 2009
http://www.australianit.news.com.au/sto ... 06,00.html

THE federal Government has terminated the tender process for its national broadband network project and will instead look to partners to build a $43 billion fibre to the home network.

A new company, National Broadband Network Corporation, will be created to build the new network. It will be jointly owned by the Government and the private sector, Prime Minister Kevin Rudd said.

Mr Rudd said not one of the private bidders for the NBN's request for proposals met the government's requirements.

"None of the bids offered value for money," Mr Rudd said.

"The panel noted the rapid deterioration of the global economy had a significant impact on the process."

Prior to today, the Acacia consortium, comprising wealthy businessmen and telco veterans, had been regarded as frontrunner for the project ahead of Singapore-owned Optus and Canadian telco Axia NetMedia.

Telstra, Australia's largest telco, was expelled from the tender process after it failed to meet government guidelines in December last year.

Communications Minister Stephen Conroy said the Tasmanian government's state-based bid for the NBN was still being considered and that negotiations would commence over the next 24 hours to decide a construction timeline. He said it would be likely that the Tasmanian build would commence in July.

The status of the other state-bidder, TransACT, remains unclear.

The NBN's original objectives of rolling out a fibre to the node network to 98 per cent of the population featuring minimum speeds of 12 megabits per second (mbps), will be replaced with a plan to deploy a fibre to the home network that will achieve peak speeds of 100mbps.

The government says the new network will connect 90 per cent of all Australian homes, schools and workplaces with broadband speeds that are 100 times faster than what is currently available.

The remaining 10 per cent of the population will be connected via a mixture of wireless and satellite technologies capable of broadband speeds up to 12mbps.

The network, which Mr Rudd described as the single biggest infrastructure project in Australian history, will be built in partnership with the private sector.

"This will be Australia's first national wholesale, open access network not controlled by Telstra," Mr Rudd said.

Private sector investment in the new network will be capped at 49 per cent.

The new NBN proposal will open the door for Telstra's re-involvement in the project.

"We are inviting all telcos, Telstra included, to be a participant in this network," Senator Conroy said.

The Government's investment in the network of up to $4.7 billion remains unchanged. The network's total cost is expected to be up to $43 billion over eight years, Mr Rudd said.

The Government's investment in the company will be funded through the Building Australia Fund and the issuance of Aussie Infrastructure Bonds, a new instrument.

The Government intends to sell down its interest in the company within five years after the network is built and fully operational, depending on market conditions and national and identity security considerations.

Mr Rudd the project will directly support up to 25,000 local jobs on average every year during the construction period.

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Re: Jobs galore.. Government creates new company to build NBN

#2 Post by Howie » Tue Apr 07, 2009 11:55 am

Quote from overclockers.com.au
....including requiring greenfields developments to use FTTP technology from 1 July 2010.

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Re: Jobs galore.. Government creates new company to build NBN

#3 Post by Wayno » Tue Apr 07, 2009 2:24 pm

matrix.JPG
matrix.JPG (22.29 KiB) Viewed 5890 times
Trinity (Gillard): I know why you're here, Neo. I know what you've been doing... why you hardly sleep, why you live alone, and why night after night, you sit by your computer. You're looking for him. I know because I was once looking for the same thing. And when he found me, he told me I wasn't really looking for him. I was looking for an answer. It's the question that drives us, Neo. It's the question that brought you here. You know the question, just as I did.
Neo (Rudd): What is the NBN?
Trinity (Gillard): The answer is out there, Neo, and it's looking for you, and it will find you if you want it to.

Neo (Rudd): I thought it wasn't real
Morpheus (Swan): Your mind makes it real
Neo (Rudd): If you're killed in the NBN, you die here?
Morpheus (Swan): The body cannot live without the mind
Opportunity is missed by most people because it is dressed in overalls and looks like work.

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Re: Jobs galore.. Government creates new company to build NBN

#4 Post by Howie » Tue Apr 07, 2009 2:30 pm

haha.. gotta hand it to the geeks. I've heard some good comments on other forums today.

Here's some ...
I know.. let's call the new NBN company, Telecom
You mean 90% of australian's get to use VOIP? Goodbye Telstra

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Re: Jobs galore.. Government creates new company to build NBN

#5 Post by stumpjumper » Tue Apr 07, 2009 3:31 pm

Howie, I suspect it won't be goodbye Telstra but 'Hello again, Telstra'.

After all who but Telstra will be able to deliver as the government's partner.

The only alternative would be an overseas agency or consortium. China Telecom, anyone? CT is already spreading its wings across the world:

"The international position of the CHINANET has been significantly raised and the CHINANET has now become the top Internet network in the Asia-Pacific and the worldwide as well. China Telecom has carried out international data communications cooperation with 42 telecom operators in 24 countries and regions, providing international data services to the whole globe, including the IPLC, FR, ATM, IP VPN and the corresponding value-added services. In 2007, China Telecom further strengthened the foreign cooperation for its international data services, attracted more overseas telecom operators to select China Telecom`s networks to provide their transnational customers with global networking. On the other hand, in carrying out the “Going Abroad” strategy, the capabilities of enterprises with China`s capital and Chinese merchants were further improved."

"Today, China Telecom has become the gateway provider for those operators in other parts of the world and those operators bordering with China for their international connectivity and also a bridge linking Europe, Asia, Oceania and other continents."

- http://en.chinatelecom.com.cn/corp/odaic/index.html

I'm not bashing the Chinese, just pointing out that unless the government knocks on Telstra's door for help with this project, we may end up with China, a foreign, non-democratic country, owning or operating our communications infrastructure.

That may appeal to Honourable Plime Minister Kevin Ludd as being the natural order of things. It certainly doesn't appeal to me.

Surely with the number of digital data carriers already operating here, we could have got something going.

The news from Rudd that the government will 'do it themselves' fills me with misgivings. Having made a hash of the tender process and wasted millions in doing so, the government, raising the budget from $4.5 billion to $40 billion ('financed by debt' of course) is going to have a go.

It will be interesting to watch. We might get China Telecom with Sol Trujillo as an advisor at some fee he feels is appropriate.

My suggestion, by the way? Go all mobile/satellites. Forget fibre-optics.

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Re: Jobs galore.. Government creates new company to build NBN

#6 Post by Wayno » Tue Apr 07, 2009 4:00 pm

stumpjumper wrote:My suggestion, by the way? Go all mobile/satellites. Forget fibre-optics.
I agree with you SJ. The financial ROI for a FTTN solution will quickly taper off - mobile wireless is the future for Joe Public. However, a FTTN solution will most likely spawn a myriad of "small connected businesses" in the burbs and across the countryside - which i believe is a good thing.
Opportunity is missed by most people because it is dressed in overalls and looks like work.

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Re: Jobs galore.. Government creates new company to build NBN

#7 Post by Howie » Tue Apr 07, 2009 4:35 pm

If you take a look at wireless speeds right now... at 802.11g you're talking 54mbps, at 802.11n you're talking maybe double that? What of the range? 50m from the access point with a couple of internal walls? Perhaps 100m for 802.11n? Then given developments of wi-max they may be able to push that into Cellular range. Currently we still have issues with what frequency do you broadcast at? How will it not interfere with other 2.4ghz products (microwaves, handphones, etc). Then you've got deadspots.

Don't get me wrong, I'm all for wifi hot-spots. But if we're going to be building a piece of infrastructure which has almost unlimited bandwidth and potential for uses in all sorts of applications which we can't even begin to imagine now (like virtual medicine, teleconferencing, home networking apps, etc), then why not go FTTH?

In 2001, they determined that the theoretical maximum bandwidth through a single strand of fibre was 150terabits per second. Or roughly 20billion phone calls a second. By the time, this is built, I wouldn't be surprised if the 100mb we're promised goes up to 1.5tb (just like what commercial fibre is now). You'd never have to upgrade the backbone ever again if it's built.

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Re: Jobs galore.. Government creates new company to build NBN

#8 Post by stumpjumper » Tue Apr 07, 2009 5:01 pm

I hope you're right, Howie.

I have a nasty feeling that FTTH is going to mean a higher average direct cost to the user than the public will pay. This in turn would mean either the exclusion of many users on cost grounds, or a highly subsidised service.

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Re: Jobs galore.. Government creates new company to build NBN

#9 Post by Wayno » Tue Apr 07, 2009 5:34 pm

i read somewhere (in the Fin Review i think) the target monthly subscription price is $45
Opportunity is missed by most people because it is dressed in overalls and looks like work.

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Re: Jobs galore.. Government creates new company to build NBN

#10 Post by Shuz » Tue Apr 07, 2009 5:48 pm

I'm eagerly looking forward to this. About time the Government started a Nation Building Project for the future.
Now how about a HSR while we're at it too? :P

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Re: Jobs galore.. Government creates new company to build NBN

#11 Post by Howie » Tue Apr 07, 2009 6:02 pm

Wayno wrote:i read somewhere (in the Fin Review i think) the target monthly subscription price is $45
That's totally fine by me if it means I get 100mbit+.

The backbone is meant to be open access, and wholesale only (unlike Telstra who is both retailer and wholesaler). It opens so much freedom as to who we can have as an ISP. The increased competition will mean more innovation and better pricing.

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Re: Jobs galore.. Government creates new company to build NBN

#12 Post by Cruise » Tue Apr 07, 2009 7:58 pm

The only problem i have with this is it is creating another asset the liberals will proberly sell off as soon as they can

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Re: Jobs galore.. Government creates new company to build NBN

#13 Post by Howie » Tue Apr 07, 2009 8:43 pm

Well labor has already said they'd dilute their share in NBN Corporation within 5 years of it's completion, and leave it an entirely wholesale arm. So they're being upfront about it. And in the end we're still in a better position than we're in today, with Telstra being the wholesaler and the main retailer of our copper network. I don't see any drawbacks to this investment. It'll create heaps of high end jobs, it'll be Australian built, massive investments will be made to ensure it happens, and we're left with the best broadband infrastructure in the world. I don't think those outside of the IT world fully appreciate what this will mean for our future and our kid's futures. And while $42 billion sounds like a lot, one person equates it to a $2000 stimulus bonus payment to every person in the country... small price to pay for what you get back.

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Re: Jobs galore.. Government creates new company to build NBN

#14 Post by Cruise » Tue Apr 07, 2009 8:56 pm

Seeing as i am borderline being computer illiterate i guess i should just admit i will never understand this 8)

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Re: Jobs galore.. Government creates new company to build NBN

#15 Post by Howie » Tue Apr 07, 2009 9:01 pm

In the meanwhile... Korea may be replacing their 100mbit FTTH network with a 1gbit FTTH by 2012! http://www.engadget.com/2009/02/02/sout ... 2#comments

Just when we thought we were catching up too 8) Oh well we'll still be right up there with the best of them. Americans are well pissed by this recent announcement... they're struggling on cable/adsl like we are at the moment, with no national broadband network plan in place for the near future.

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