The Fibre To The Node (FTTN) tender period is drawing to a close albeit months late. It now appears that there are two contenders of note. Telstra versus the Rest. The winner of the FTTN contract will have a great opportunity to shape the future of network access in Australia. If Telstra wins it may become a question of what rules and regulations are put in place by the Federal Government to protect competition and investment.
The tale of Omeo in the Victorian highlands may give us an insight into the future if Telstra wins the FTTN contract. Telstra claims that the Telstra mobile network provides coverage for 98% of the Australian population. Random testing at many towns or popular tourist locations in Victoria shows that there is limited or no Telstra mobile coverage. Does this amount to more than 2% of the Australian population missing out on mobile coverage? It may if you do a head count during the tourist season. Why is Omeo important? It appears that Omeo has a hidden story about what happened after another carrier got access to put up a mobile base station in Omeo. An independent inquiry is certainly warranted into the situation in Omeo. Let me just say that I'm no demographer, but I'm betting that Telstra's claim that their mobile network provides coverage to 98% of the Australian population is just a big pork pie.
Are the other carriers any better than Telstra in making over ambitious statements about their networks and the coverage provided? Possibly not. I like to think that the Australian public are smart enough to realise that people in regional and remote Australia are getting a raw deal.
There is great anticipation as to what is going to happen next. For people in the technology industry the next couple of months will be like being an active participant in a hit soap opera. As the amigos start heading back to the good old USA, who will step up in Telstra to bash the Australian Competition and Consumer Commission and growl at the Federal Government at every public speaking opportunity?
Seeing the back of the three amigos is certainly a good opportunity for Australian managers to regain control in Telstra and put sanity back into the company. Australian's own Telstra (smalll investors and superannuation funds) and at the end of the day if Telstra continues with a high prices policy then only Australians will be hurt. Is there corporate logic here? We're going to charge you more just so we can give it back to you as profit through your super fund after the Government gets a big whack in tax.