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NBN National Broadband Network: Turnbull reckons we can get by with 25mbps
Topic Started: 3 Apr 2013, 07:32 PM (8,911 Views)
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mel
15 Aug 2013, 03:22 PM
Apologies for posting entire articles - sometimes the links trigger a firewall asking for a password on my end. Does this happen to anyone else?

It's better not to for News Ltd and Fairfax articles. News Ltd complained a couple of years ago. I truncate them if I see a full News Ltd or Fairfax article posted.

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mel
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Thanks Alex. You would think they would be happy you are linking to their service. Ill try to avoid posting their articles in full.

Does anyone else have a problem hitting the link on the previous article?
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mel
15 Aug 2013, 03:45 PM
Thanks Alex. You would think they would be happy you are linking to their service.
Thanks Mel. They view it as potential loss of revenue. If people can read the entire article here they don't need visit the original site and potentially click an ad there.
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The NBN's high-speed path to where?

Sandy Plunkett

In the leaders’ debate between Prime Minister Kevin Rudd and Opposition Leader Tony Abbott, Daily Telegraph political editor Simon Benson asked the prime minister to outline what he meant by the ‘new economy’, how we transition into it and where people can expect the jobs to be.

It’s a great question, one that Rudd said goes to the “absolute core of the economic debate that lies ahead of us, for the nation”. Then Rudd spoke of a changing China and the death of the mining boom. But he didn’t answer the question.

Abbott, “not a tech head” by his own admission, steered clear of a definition by retorting that if the mining boom was over, it was because “Rudd killed it”. His pitch to voters focused on promises of traditional infrastructure upgrades, such as highways and new airports. These upgrades are important for new jobs and a great way to spend money when headed into a downturn. But they won’t transition us into the new economy.

So what do we mean by the new economy?

The new economy is one where sources of new wealth are increasingly derived from digital products and services. It‘s innovation-driven and it’s global, which means new ideas jump around the world fast. With some 220 countries and 7 billion people on the planet, there is increased breadth and depth in pockets of global opportunity. If you have something valuable it will spread. With high speed networking, it no longer matters where you are located.

The shift from the physical to the digital and from local to global is disrupting, transforming and killing traditional industries and jobs. But resistance is futile. Competitively we have almost nowhere to hide. Countries, governments and businesses are competing like never before for a share of the world’s best minds, managerial talent and customers.

IBM Australia and New Zealand managing director Andrew Stevens nailed the socio-economic shift when he said: “We know that the internet generation born in the mid-1990s is now outnumbering the baby boomers in the economy and, with the ’millennials‘ coming through, this (shift) is going to accelerate and is going to be the deciding factor at the competitive frontier between leader and laggard in every industry and every corner of our economy. If we get this digital transformation right, we will power Australia for generations to come.”

Stevens’ comment was part of the introductory remarks to a recent conversation about Australia’s national broadband network between Opposition communications spokesman Malcolm Turnbull and Business Spectator’s Alan Kohler. That event was followed by Lateline’s NBN debate between Turnbull and Labor’s newly installed minister for communications, broadband and the digital economy, Anthony Albanese.

Both NBN discussions, however, failed to excite or inspire, by staying down in the weeds of comparative net speeds. There was little discourse to enlighten business leaders and consumers on how either party’s version of a national high-speed broadband network could become a platform for innovation and business transformation and enable the more efficient delivery of vital services in health and education.

Whichever version of the NBN eventually materialises, it will most definitely play into Australia’s ability to transition and compete in the new economy. I view the different approaches to the NBN build-out in this way: Labor’s NBN may have the bolder vision and even the policy language of the new economy, but it has so far failed to prove that it can execute any scope of the project efficiently; meanwhile, the Coalition’s stripped-down fibre to the node version may materialise quicker, with lower (but good enough) ambitions. But with the structural separation of Telstra at risk, that model also looks like it may mean a reversion to a Telstra dependency and only a slightly-reframed Telstra monopoly.

As much as we should question’s Labor’s ability to execute the NBN without further cost blowouts, we should also question the Coalition on its vision. How much does the Coalition leadership care about how the NBN plays into broader innovation policy?

In Innovating Australia – How we Measure Up, an excerpt from an upcoming book for CEDA called Adjusting Australia, Professor Roy Green and Dr Danielle Logue at the University of Technology, Sydney state: “Australia’s recent economic history suggests that our commitment to innovation is sharpened by adversity, but conversely blunted by the wealth effects of a commodity boom, which engenders what former Prime Minister Paul Keating depicted as ‘policy indolence’.

Green and Logue examine the evolution in Australian innovation policy within the past decade. These include Backing Australia’s Ability, a five-year innovation plan launched by the Howard government in 2001 with its focus on public investment in science and technology, and Dr Terry Cutler’s Powering Ideas in 2008-9. Cutler’s review took a broad view of the national innovation ecosystem and its dependency on talent and creativity. More recently we had Gillard’s manufacturing taskforce and the development of the innovation precincts program in the Plan for Australian Jobs.

But Australia’s high wage economy and relatively low productivity growth presents significant challenges. Green and Logue argue: “This is an unsustainable combination as it means that unit labour costs are increasing much faster than in other advanced countries, with the prospect that we cannot match the intensifying global competition at the high end of the value chain or from lower cost, faster growing emerging economies.”

Innovative industries are as dependent on government policy intervention to foster success (or at the very least, not get in the way of it) as they are on industry big and small to make it happen. Policy leadership has to connect old and new economy transformation potential by creating “joined up” portfolios of expertise in innovation, skills and productivity. That means re-thinking industry linkages and political portfolios.

It also means having a stomach for failure, because without risk-based endeavour and the failures that come with it, success in the new economy is hard to come by.

From a policy standpoint, incentives need to be asymmetrical, with strong incentives for success and weak penalties for failure. The reverse is precisely why incumbent organisations tend not to be innovative. Once a company becomes successful and institutionalised, its incentive structure tends to be more about loyalty than rewarding risk-based endeavour. The same is true of nations, especially those who have initially enjoyed success but are now faced with the complacency effects of a commodity and resources boom.

Read more: http://www.businessspectator.com.au/article/2013/8/19/information-technology/nbns-high-speed-path-where
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mel
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How the NBN Differs from ADSL2+, Cable and Wireless

NBN Differences

The National Broadband Network (NBN), if you don’t know, is a far-reaching scheme set in motion by the Australian Federal Labour Government that seeks to bring super-fast broadband internet to 93% of all Australian households, with the remaining 7% receiving regular broadband speeds where before there were none.

Initial NBN broadband speeds will be variable, with the range of speed chosen by the user, rather than the ISP. Currently there are four tiers of speeds available: 12Mbps, 25Mbps, 50Mbps and 100Mbps. The 12Mbps and 25Mbps options are comparable with average to maximum ADSL2+ speeds, while 50Mbps and 100Mbps are closer to current Telstra and Optus Cable speeds without costing quite as much.

Eventually the speed of the NBN will be increased with maximum speeds of around 1Gbps (over 1000Mbps) being estimated.

Installation of NBN broadband connections will be free of charge for residential households and do not require the occupant of a premises to sign up to an NBN plan straight away. There will be plenty of time for people with new NBN connections to finish up their current broadband contract before switching over to an NBN plan.
The Difference Between NBN and ADSL2+

The main difference that a user will notice between an NBN connection and ADSL2+ is the potential to receive much faster speeds. While ADSL2+ has a maximum potential speed of 24Mbps, most users get much less than that.

This is because ADSL connections rely on close proximity to a DSLAM or interchange. This DSLAM is where the fibre optic cable from an ISP transfers over to the traditional twisted-pair copper used in telephone networks. This copper cabling is not designed to carry large amounts of data and as such is quite inefficient at it. Anyone living more than 5km from their nearest DSLAM would likely be unable to obtain broadband speeds over an ADSL2+ connection.

The current Fibre to the Home (FTTH) architecture of the NBN is much more modern and employs fibre optic cabling all the way to the user’s premises. This negates the problem known as “last mile”, where ADSL connections switch over to copper wiring. This means that much faster speeds can be delivered.

NBN plans vary broadly in speed and cost, but the 12Mbps and 25Mbps tiers are comparable to ADSL2+ pricing in many respects. While some people on ADSL2+ might not notice a speed difference on a 12Mbps plan, speeds approaching 25Mbps are enjoyed by very few ADSL2+ users. To get this kind of speed on ADSL2+ a user would have to live almost on top of the DSLAM. Moreoever, many ADSL2+ users receive less than 12Mbps and ADSL1 users receive only a maximum of 8Mbps under ideal conditions.

In summary:

NBN plans vary in price, but can be as cheap as ADSL plans
Cheap NBN plans boast similar speeds to what some users already receive on ADSL2+
NBN plans have the potential to be much faster than ADSL2+
The NBN uses a modern architecture that is designed specifically for the high speed transfer of internet traffic while ADSL and ADSL2+ relies on an infrastructure that was not originally intended for more than telephone calls

The Difference Between the NBN and Cable

Optus and Telstra high speed cable broadband is similar in many respects to the NBN. Where they differ is once again in the “last mile”. Cable connections employ fibre optic wiring to a node, after which the signal is transferred to coaxial cabling. Coaxial cabling is a form of copper cabling, but is much better at transferring high speed data than the twisted pair wires of an ADSL network. As stated earlier the NBN will feature fibre-optic cabling all the way to the premises.

It is important to note that the current plan of the Federal Opposition (The Coalition) is to substitute fibre optic cabling in the “last mile” for coaxial cabling. This essentially means that there will be very little difference between traditional cable broadband and the NBN infrastructure.

Current cable broadband speeds can vary between 30Mbps and 100Mbps, depending on geographical location and provider.

While it is true that initially the FTTH NBN will be equal in speeds to the fastest cable broadband connections of Telstra and Optus, it will also have the option of being cheaper, once again depending on provider.

Future upgrades to the NBN network should improve its speeds far beyond the capabilities of cable.

In summary:

Initially NBN maximum speeds will be similar to Optus and Telstra Cable maximum speeds
NBN plans can be noticeably cheaper than Cable plans
The NBN will eventually be upgraded to far exceed the maximum speeds of cable
The current FTTH architecture of the NBN may be switched in favour of one more similar to current cable standards. This is the current plan of the Federal Opposition, if elected
Cable requires an installation fee, the NBN does not

The Difference Between the NBN and 4G Wireless Broadband

At the beginning of the NBN debate it was often suggested that a wireless solution be entertained, as it would be much cheaper to install. These arguments have mostly been traded in in favour of the Opposition’s new coaxial plan, but many Australians are still wondering why we wouldn’t opt for wireless.

Wireless broadband, especially the new 4G networks cropping up, are a fantastic way of providing broadband internet to portable devices. Many users even rely on them for their home connection, as there are little-to-no connection fees, your connection can be taken with you in public and moving house is much easier.

Despite the handiness of a portable connection and the new incredible speeds of 4G LTE, there are still many reasons why it would not be a viable solution for a country-wide internet infrastructure.

Wireless is simply not as reliable as fixed-line alternatives, nor are leading-edge wireless technologies as fast as their contemporary fixed-line counterparts. While it is truly amazing that 4G LTE has already proven itself to provide speeds of up to 60Mbps in metro areas, those speeds vary wildly and can drop to below 6Mbps in just 4km. Wireless broadband is also affected by surroundings (buildings, electrical wires etc), weather patterns and can show varying effectiveness from room to room in a single household.

In summary:

The NBN’s initial maximum speeds will roughly double what 4G users have seen in ideal conditions
Fixed-line connections like the NBN, ADSL and Cable provide a more reliable and stable connection than wireless
Wireless broadband is fairly short ranged with speeds dropping significantly over just a few km
Wireless connections can be unreliable in-doors
Some areas, such as built-up metro areas with high rise buildings, can block wireless signals
Wireless networks are generally cheaper and easier to create
Both wireless and the NBN do not involve charges for installation
Edited by mel, 19 Aug 2013, 11:07 PM.
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mel
15 Aug 2013, 03:45 PM
Thanks Alex. You would think they would be happy you are linking to their service. Ill try to avoid posting their articles in full.

Does anyone else have a problem hitting the link on the previous article?
The link only provides the first para or so. You can get round paywalls by copying the url or headline and searching with google news.
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The NBN is now Malcolm's Mess

Alan Kohler

Watching the new Minister for Communications, Malcolm Turnbull’s performance yesterday, one was forcefully struck by the thought that the NBN is now his, quickly followed by a second realisation that sometime in the past two weeks he has been struck by the same thought, which would, in turn, have been quickly followed by: “Oh Shit”.

The NBN is a complex government-owned, ubiquitous monopoly wholesale broadband network, connecting earth’s least populated continent, on a very tight business plan, that is running about as far behind schedule as a normal house renovation – that is, it’s more or less on track.

It’s not a mess yet but oh boy, it could be. And it would now go down as Malcolm’s Mess, which perhaps explains the tightness of the ministerial lips yesterday and why the key exhortation in his first “Statement of Expectations” to the NBN board, whose “offers of resignation” he has requested, was: “Keep Calm and Carry On”. As if.

The 2013-2016 draft NBN corporate plan, not released publicly but leaked yesterday to your correspondent and others, is 140 pages of terrifying, mostly incomprehensible detail. It describes an infrastructure project that, to the untrained eye, looks basically impossible (Turnbull pops the bubble of broadband nirvana, September 25).

The document revises the forecast revenue down by $1.4 billion because of the three-month rollout delay, but the forecast internal rate of return is still 7.1 per cent.

That return relies on this statement on page 21 of the document: “Subject to a limited number of exceptions, Telstra has agreed that it will use the NBN FTTP network exclusively as the fixed line connection to premises in the NBN Fibre Footprint for a 20-year period from commencement of the Definitive Agreements. That means following the Disconnection Date in respect of Rollout Region, Telstra will… only use the NBN FTTP Network to provide fixed line carriage Services to End-Users’ premises…”

It goes on: “Typically all households and business will migrate off the copper and HFC Networks within 18 months from the date on which NBN FTTP services are first available in their community.”

Later the document says: “NBN Co’s systems are being designed to provide an experience for Service Providers that is as close as possible to owning their own network.”

In other words, the NBN’s forecast return of 7.1 per cent, something only a government would be satisfied with, depends upon it being a monopoly wholesaler – a socialist throwback in which the State owns the means of communication.

And now it’s Malcolm Turnbull’s socialist throwback.

Coalition policy, for which it has both a mandate and an obligation, is based on the more contemporary notion of competition.

As the full-stop-rich policy document (Hope. Reward. Opportunity. Fast. Affordable. Sooner.) says: “Competitive and free markets have driven innovation and cost reductions in telecommunications since the early 1990s. The Coalition will remove or waive impediments to infrastructure competition introduced to provide a monopoly to Labor’s NBN.”

The change that matters with the change of government is allowing Telstra not to migrate all of its customers to the NBN, and allowing firms like TPG Telecom to connect the most profitable parts of the cities to its own wholesale fibre networks.

It is a matter of ideology. Malcolm Turnbull is right: the technology doesn’t matter – FTTN will be fast enough, and if the 7.1 per cent IRR can be improved with more copper, it should be done. And who’s on the board doesn’t really matter, as long as they are sentient beings who know how to recruit and govern.

What matters is whether it’s a wholesale monopoly. If it’s not, best to cancel it now while we still can.

Read more: http://www.businessspectator.com.au/article/2013/9/25/information-technology/nbn-now-malcolms-mess
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Quite a good little segment on NBN in Canberra from the ABC.

There's possibly an arbitrage opportunity in only buying in areas that are getting the fibre.

NBN - If you've got it, Flaunt it.

Peter Elford is an ex-colleague (and ex-competitor) of mine.
The truth will set you free. But first, it will piss you off.
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mel
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miw
5 Oct 2013, 02:00 PM
Quite a good little segment on NBN in Canberra from the ABC.

There's possibly an arbitrage opportunity in only buying in areas that are getting the fibre.

NBN - If you've got it, Flaunt it.

Peter Elford is an ex-colleague (and ex-competitor) of mine.
nice piece miw - i hope everyone gets the nbn but it's looking unlikely.

At the beginning of the video Peter says customers can call someone to have the fibre connected to the house which is what i (also) believed to be the case, athough i remember walking to the front door one day when someone was knocking until i heard what sounded like a foxtel type character saying "hello, hello!". That was enough for me to turn around and not answer the door.

moments later i heard the house shaking so i ran outside and there were a couple of blokes drilling the nbn box to the side of the house (i didn't contact anyone to have it connected)
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mel
5 Oct 2013, 02:40 PM
nice piece miw - i hope everyone gets the nbn but it's looking unlikely.
Maybe I'm suffering from confirmation bias, but I have this feeling that Turnbull is giving himself wiggle room so he can be persuaded.

If I was really keen to stop the fibre rollout, I would have stopped them already on the basis that termination penalties now justify cost savings later. As it is, Turnbull has pretty-much guaranteed that FTTN will not start to roll out for at least 12 months, and in the meantime fibre-connected homes will double. Not the actions of someone trying to nip something in the bud.
The truth will set you free. But first, it will piss you off.
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