Leighton Holdings' Nextgen Networks has been awarded a $250 million contract to roll out fibre-optic backbone links in regional areas. Is this the first signs that the NBN will provide competition to Telstra in the backhaul network?

This week we have seen the government tell Telstra that it must split into two voluntarily or face a range of sanctions. Whilst this action by the government could be seen as a long overdue effort to split Telstra into two entities, even if they are only at arms length and thereby gain a clear view of the Telstra wholesale divisions pricing to the Telstra retail division and to other retail customers. Interest is now growing on what the government will do next. Will the government attempt to buy the Telstra wholesale division or some part of it and thereby create a new monopoly - the NBN.

An unexpected move by the ACCC could see the value of Telstra's copper network change and the outcome could be confusion. If the copper network becomes more valuable for Telstra over the next 5 years, will this reduce Telstra's need to participate in the national broadband network? Competitors Optus, Primus and others are likely to oppose the copper access pricing change in submissions to the ACCC.

Telstra's website makes the claim that for the Telstra Next G network 99% of the Australian population is covered. This claim just does not hold water. Many Australian towns and large regions of the country do not have Telstra Next G coverage. A recent journey through some of the regions bordering Australia's remote regions has found that Telstra's claim is very likely to be overstated. The Australian Consumer and Competition Commission must look into the accuracy of Telstra's claims.

The Government has made a giant leap and will now form a company that is 51% public owned to build fibre to the premise for 90% of Australians. The remaining 10% of the Australian public that will not gain access to fibre to the premise will be supported by better wireless and satellite broadband access.

More details emerge daily and summaries of what we have learnt to date abound. What is of more interest is what we have not learnt so far through all of the press releases and statements by Government MPs. The list of things we need to know is quite large and some of the more pressing items include whether a new cable will be laid to Tasmania or will the fibres laid with BassLink to be used to overcome the current Telstra connection bottleneck to the Apple Isle. What this leads onto is the question of a second national wholesale backhaul network and whether this is going to be built independently of the existing Telstra wholesale backhaul network or will Telstra be able t ... Read More »

The Federal Government has indicate the National Broadband Network (NBN) tender winner will be announced soon. Of more interest to people in the indusry is the legislative framework that will accompany the decision announcement. Will Senator Conroy be able to convince his colleagues to provide a truly competitive framework for the NBN such that the telecommunications sector can move forward with fair and reasonable competition for all.

Telstra is now out of the NBN race after submitting a non-conforming tendor response. Telstra's gamble on what the future holds will provide many twists and turns in Australia's effort to gain a next generation network.

Telstra now appears to be in the box seat to win the Fibre to the Node tender. The global financial crisis has caught competitors unaware and they will now find it difficult to fund their bids. Telstra should be immune from the problem of finding global finance for the rollout with anticipated revenues being redirected to cover the cost of the Telstra bid.

It now appears that the Fibre To The Node contract will either go to Testra or a consortium representing the remainder of the Australian carriers.

The OPEL contract for regional and remote broadband access has been cancelled.