Broadband network waste of money: iiNet

iiNet managing director Michael Malone has warned a Senate Committee that the federal government's national broadband network is doomed to be a huge monumental failure and a waste of $5 billion of taxpayers money.


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The senate enquiry should listen up to iinet and follow the example they have set. I have no connection with iinet, I am not a shareholder, but I am a satisfied customer of over 6 years standing and would challenge any telco anywhere to better the service and value for money they offer. It really is time to dismantle the Telstra monster and bring some real competition into the market. This initiative is a once in a lifetime opportunity, so lets start with a clean sheet and see what works and what doesn't... How long do Australians have to put up with high prices and shoddy services from what is proported to be the nations premier carrier? Wake up, the UK had the courage to dismantle BT. Results? a competitive market that grew through the innovation of new companies who were able to get into what was once a monopolistic market.

Simply iiNet and their fanboi's whining once more about Telstra, wanting it broken up so Telstra is unable to compete. Parasite ISP's like iiNet get cheap access to Telstra's buildings, power, air conditioning cable etc as they do not want to invest their own money, preferring Telstra invest the money then demanding cheap access to Telstra infrastructure

Once again iiNet is worried about its own DLSAM network. If they cared about regional areas, why didn't they build DSLAMs in remote areas? And if they were worried about the price customers pay, why is their existing ADSL2 product more expensive than TPGs ADSL2 product?

Wake up, David if you want to dismantle Telstra, that's fine, just ask the government to pay back what they have received from the sale of Telstra. I believe Telstra would be happy to let the company be run by a taxpayer like you.

If the national broadband network is so bad, why is iiNet placing a bid for it as part of consortium? maybe it's just that Terria's plans are bad

Spot on iinet. It is laughable that Conroy blindly continues ahead with this farce, telling anyone who will listen that it will be a great result. He is technology illiterate, a hot head and will not listen to anyone in the know.

I believe the key (and critical part) is not the last mile connections to a customers home, however it is a decent backhaul network and open exchange access. In many places in Australia, people who can not get broadband are only 20KM or less (not saying all) away from an exchange, where a company wanting to venture into fixed wireless would be able to service those areas. The issue is, in these country areas, it is nearly impossible to get a decent capacity, and if you can it is more than 4 times the price compared to the city (when talking about the only capacity is through SHDSL). The only solution (and problem) is access to a Telstra exchange. With Telstra guarding their exchanges with exorbitant fees, it makes providing a 'metro' service close to impossible. If the government could provide backhaul for a decent price, you would find many companies (emerging and established) willing and able to provide a service. I have delt with the DBCDE in relation to ABG funding and they are all clueless. It is easy to 'crunch numbers' however when it comes down to it, they do not have real world exposure to the dire situation broadband in Australia is in. This is backed up by thinking satellite broadband is an acceptable solution for people living 5-6KM from an exchange in a town with over 15000 people. I know, as I am part of a regional ISP whom has been rejected from the ABG program, working extreme out-of-business-hours to service our current dialup customers, just to be kicked in the teeth by the government that hands out satellite (whom many customers have returned to us because of the poor satellite connections) and stuff ISPs around with applications waiting to see if Optus can service 90-odd% of the country in a place where I work that doesn't even get Optus mobile coverage.

What a lame argument from David Morris from Perth. The 1 and only point you make for advocating the 'dismantling of Telstra' is because you're happy with the price and service of iiNet! In that case let's dismantle Porsche as you're happy with your Hyundai. Surely if Telstra's price and service don't offer value then that's exactly what competitors should be hoping for in order to win customers. But clearly as Telstra's business is in fact growing quite well, as their results show, and they are rapidly putting on new customers e.g. 90 thousand new Next G customers just in the last qtr, that's the reason the competitors are complaining. And moron's answer their calls to dismantle Telstra because Telstra is charging too much!!

So Derek - what is the cost of access to Telstra's buildings, power, air conditioning cable and how does it compare to the market rate for similar services? How does it compare to the prices charged to CLEC's in the USA or LLU providers in the UK or NZ ? It's all very well to claim that providers are leeching or getting a free ride off Telstra, but when you lack any knowledge of what those costs are, or how they compare internationally, your argument falls short.

Telstra have done nothing good to enhance our Broadband network at prices we can afford - at least iiNet et al are trying to provide a quality service at an affordable price. Telstra are good at two things - blocking/delaying technological progress and charging like there is no tomorrow. Bring on the separation of Telstra - and yes, I am a Telstra shareholder - I just care more about our future broadband options than I do my shares, as broadband will make or break this country.

iiNet and TPG is incomparable.

Stupid. Currently, speed is the bottleneck to block IT development. Imaging, if you have high speed internet, even just in Australia, IPTV, VOD, Video call on IP, network meeting, online gaming etc. All industries in IT will benefit. P2P will disappear as well, because single connection speed is accepted.

To Mr Malone, following your recent comment regarding NBN is just a waste of money, did you think of that before you formed Terria? Now after terria was 'born', and the deadline is closing down, you have a doubt over the NBN? Why not think about this in first place, so you don't have to waste your and the Australian public's time.

I don't think iiNet's position RE the NBN has ever changed. 2006 they published a document called 'The Myth of Fibre', 2007 they released a press release titled 'iiNet calls for more consultation on broadband future' and earlier this year they released another titled 'What price FTTN?' However the reality is that Conroy has shown that he will go ahead with this regardless and iiNet would be stupid not to ensure that it's involved from day one - hence their involvement in Terria.

They are 100% on the money, now that other facts have come to light. By using a bit of lateral thinking this makes perfect sense on more than just one level.

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