Telstra says that providers should co-operate rather than compete for backhaul

Following the decision by the Federal government to build its own National broadband network an offer of co-operation has now been made by incumbent, Telstra, as a different option to its plans for subsidised competition when it made its submission to the backhaul blackspot consultation.

It has been suggested by Telstra that the Government should work with it and invest the $250 million it would have spent subsidising competition serving rural communities to allow it to provide underserved areas with a fibre backhaul network.

Telstra said “Telstra estimates $250 million in funding, if allocated solely to extension rather than duplication, could connect 140 communities in Australia to the high-capacity, national transmission networks, removing barriers to deployment of high speed fixed and mobile communications.”

It went on to add “Some of these communities are the most remote and isolated in Australia. It could lead to improvements in service delivery by local government, health, education and emergency services, and open up new opportunities for regional business, industry and tourism. Schools and health services in remote areas that are today cut off from broadband-based programmes could have access to metropolitan standard Government services.”

This offer from Telstra looks to be great for the government as taking this option would allow it to claim responsibility for providing the areas of the country that presently have limited or no broadband access, which would make it very popular with the pubic. The provision of “a list of potential communities that could benefit from fibre transmission extension” from Telstra will also prove useful for the government with it listing the potential benefits of offering these underserved communities with a new high-speed broadband service.

The big problem seen by many industry experts is that at the moment areas where Telstra are dominant seem to have highly overpriced access services, which make any kind of competition difficult.

Source – www.itwire.com