Government told to back off as TelstraClear announce upgrades to its network

Following a recent announcement by TelstraClear of its intended plans to upgrade 80 000 cable broadband connections in Christchurch and Wellington the cable broadband provider went on to negative comments on the government’s plans, which is likely to push it further from the $1.5 billion that will be used for a fibre broadband initiative.

There is currently a significant difference between the attitudes and tone of comment being made by TelstraClear and rival providers Vodafone and Telecom with regards to the plans underway for the roll out of the $1.5 billion fibre-to-the-home initiative.

All three of the operators were struck a resounding blow when the government announced it would ban any retail operators from holding majority shares, and also the proposal of having 25 local fibre broadband companies made by Steven Joyce, the communications minister.

The decision that was being made regarding the shape of the governments’ fibre plans were to be delayed for two and a half months following two separate plans on a single national fibre network that were put forward by Vodafone and Telecom with the minister advising that there would be no sense in ignoring these plans. Both of the providers offered high praise for the current overall goals set by the government when entering their proposals. Telecoms proposals involved Chorus becoming the controlling body of the partially state-funded network and Vodafone’s proposal included a request for a 25 percent stake in the new fibre company.

The message that the government should keep out of the whole NBN process was made by Allan Freeth, the chief executive of TelstraClear, who appears to be taking the same stance as ex-Telstra chief Sol Trujillo. This, however, seems to be the exact opposite of the opinion of David Thodey, the new boss of Telstra Australia, who is trying to rectify the damage done to the relationship between Telstra and the Government by Sol following comments made regarding the National Broadband Network.

Source – www.nbr.co.nz