With the Telstra shareholder vote yesterday now approving the company’s $11 billion agreement with the Government, it seems the construction of the National Broadband Network has now jumped one of its most significant hurdles.
While there are still obstacles to overcome, it seems the passing of this plan, and yesterday’s release of a 12-month construction timetable, are signs that the NBN Co. is now truly on the job of constructing this network after years of debate and discussion.
There are still plenty of problems and debates to be had, but here are five reasons to be encouraged by the NBN’s progress so far.
While there’s still quite a few things to tick off with regard to Telstra’s $11 billion deal with the Government, one of the major hurdles has been passed now that shareholders approve.
Constructing the NBN itself is a huge undertaking on its own, and certainly one of the most expensive Government projects in the country’s history, but being able to split Telstra, use its infrastructure and then maintain a good relationship with the company is imperative to getting the entire job underway.
Telstra chairman Catherine Livingstone said in a statement yesterday that the NBN will “accelerate industry change… this is why, we are well advanced in preparing for both the change and the opportunities it will create”.
Of course the Australian Competition and Consumer Commission will still have its own views on the deal, and there may still need to be changes made, but overall, the approval of the deal, and the subsequent split of the company, is a huge industry shift.
After months of delays, debate and negotiation, now the Government can save some money, finally focus directly on construction, and start rolling out fibre across the country.
The public has understandably been disappointed so far with the NBN’s construction plan. Only a few areas have been connected so far and certainly no major metropolitan cities have been connected yet.
But yesterday’s announcement of a new 12-month construction plan, which includes 28 new sites to be connected within the next year, provides some hope the network is now well underway. With Darwin, Melbourne and Wollongong all set to be connected over the next year, the NBN is now moving from mere test sites in the country to connecting whole metropolitan areas at a time.
Although construction will take up most of the next decade, and some sites won’t be connected for several years, the roll out is definitely underway. The confirmation of a deal with Telstra also means that construction will proceed even faster.
One of the negative points often made against the NBN is that construction is just taking way too long. However, looking at the tender process shows the Government is at least making some progress on getting construction and support set up for the long-term.
Already, billions of dollars’ worth of construction tenders have been passed out to companies including Warren & Brown, Corning Cable Systems and Silcar, with some SMEs also getting in on the action as well.
There have been problems. Earlier this year a construction tender negotiation process was suspended with NBN Co. saying the prices quoted were just too high. But there is enough progress being made in this area to show industry is definitely getting its hands dirty with this project as well.
There has been a lot of discussion over the prices telcos will charge customers once the NBN is connected in their area, with plenty of advocates on both sides of the debate. But so far, it appears prices haven’t risen as high as some thought they would.
With iiNet, Internode and Primus all releasing their NBN plans, it’s become clear that there will be significant choice for users, who will be able to pick and choose from a variety of different plans.
It’s also encouraging that after the NBN lowered its access points for retailers, Internode actually changed its NBN prices and released an amended version. And with plenty of wholesalers signalling their involvement, it’s clear there will be plenty of competition.
It’s true that the NBN won’t necessarily be cheaper than what users are paying now. But it’s becoming clearer that users will be paying the same amount of money for a superior service.
The NBN plan dictates that some rural areas won’t be serviced by fibre, but by satellite and wireless connections.
In July, the NBN Co. launched the interim satellite service which will help users in rural areas connect to the network. This is to carry users through to 2015, when the company will launch two dedicated satellites for services.
While the service may not be at its final point yet, it’s encouraging to see the NBN take rural users seriously.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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