Telstra targets 鈥榰pgraded鈥 NBN

September 30, 2020
Issue 
Photo: Jan Va拧ek from Pixabay

The corporate vultures are circling the ailing National Broadband Network (NBN), with the Telstra boss saying the federal government鈥檚 announced upgrade would make it a more 鈥渁ttractive鈥 target for acquisition.

Without a hint of irony, Telstra chair John Mullen said on September 28 that a 鈥渕ore efficient, better quality聽NBN鈥澛爓ould be 鈥渕ore attractive for all potential investors鈥 and that hopefully Telstra 鈥渉as a seat at the table鈥.

Predictions that the Coalition government will sell off the聽NBN if it wins the next election have surged since it announced plans to spend $4.5 billion over the next two years.

It will give almost 10 million households and businesses the option of internet speeds of up to 1 gigabit per second by connecting fibre directly to the premises 鈥 along the lines of the first plan 鈥 although for a price.

The connection would be free, but only for households prepared to pay up to $150 a month 鈥 substantially higher than the current lower speed $60 or $70 a month.

The current fibre-to-the-node system, which is almost complete, has been roundly criticised for its poor speed.

Laurie Patton, founder of the #BetterBroadband campaign, said on September 24 that the government would not risk another election with the NBN in the mess, overseen by former PM Tony Abbott and his then communications minister Malcolm Turnbull.

He described Turnbull demolition of Labor鈥檚 state-of-the-art fibre model as a 鈥減olitically-inspired demand鈥 and criticised NBN Co for spending billions of dollars on 鈥渄ud technology鈥.

鈥淒on鈥檛 let anyone tell you this is just an upgrade. Most of the outdated fibre-to-the-node technology out in the field will be redundant [by the next federal election] and will have to be junked.鈥

Patton said the pandemic had inspired a new trend, working from home, which will continue for many companies and employees. 鈥淭he pressure for a proper NBN was bound to increase.鈥

Communications minister Paul Fletcher has prioritised a $300 million allocation to rural and regional customers, which Patten says confirms that the upgrade is an 鈥渆lection move鈥.

鈥淢any of the millions of聽Australians struggling with slow and unreliable broadband connections live in highly contestable rural seats held by increasingly nervous National Party MPs.鈥

It has been estimated that by 2025, after retiring some debt and replacing other with government bonds, NBN will be worth about $100 billion.

Fletcher has not hidden the government鈥檚 plan to sell off the NBN, saying it had always been the government鈥檚 intention that the NBN聽will 鈥渢ransfer to the private sector鈥.

Kim Wingerei writing for MichaelWest.com on September聽25 said that the country is ranked 50 in internet聽speed worldwide.聽鈥淲e鈥檙e well below almost every country in Europe and North America and many including 鈥榙eveloping鈥 countries in South-East Asia鈥 as well as New Zealand.

鈥淸The NBN] cost $14.5 billion more than budgeted, is under-performing and now the government wants to spend another $3.5 billion to upgrade it, while competition looms.

鈥淎ustralia could have had a world-class telecommunication infrastructure utility. Instead, it has ended up with a substandard national broadband network that may be obsolete within a decade without further significant investment in fibre.鈥

The Labor opposition agrees that the聽NBN聽would be sold off, eventually.聽 To stop this from happening, the labour movement and community need to draw a line in the sand and demand that this critical piece of national communications infrastructure remains in public hands.

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