Firms to patch cannon-balled broadband plans
Several companies in the telecoms industry are taking the uncertainty over the future of the National Broadband Network as an opportunity to drum up some profits.
TPG - one of the country’s largest internet service providers – has embarked on a project to build a fibre-optic network of its own, mimicking what would have been delivered under the Rudd/Gillard government’s fibre-to-the-premises plan. TPG’s rollout would compete directly with the Federal Government’s introduction of its National Broadband Network, which will most likely provide fibre-optic connections only as far as regional nodes.
In briefing documents for recent financial results, TPG revealed its plan to bring high-speed connections to peoples’ homes.
TPG will be “leveraging and expanding [its] existing fibre network” to deploy “fibre to the building”, with “500k units currently in design”.
“The Group is planning to increase the number of buildings directly connected to its fibre network in metro areas,” the company documents revealed, “with the evolution of new technologies now enabling speeds of up to 100Mbps, this will enable the Group to commence offering very high-speed broadband services to its customers at ADSL2+ prices.”
TPG’s plan has been labelled FTTB or fibre-to-the-basement; the company is seeking to install fibre-optic internet access to large apartment buildings or offices where it can be shared across multiple account connections.
There has been speculation that systems such as TPG’s ‘mini-NBN’ will lead to a situation like that in the United States, where people’s choice in providers is limited to whoever could afford to build the nearby infrastructure.
Telstra are getting moves underway to scoop up some of the opportunities trimmed from the NBN by the incoming government. The phone company have built a test site to model the Coalition government’s preferred NBN plan, aiming to bid for contracts under the new regime.
Telstra’s Coalition NBN example has been seen as an effort to secure some of the billions of dollars worth of contracts which will be re-negotiated under the new government’s broadband plans – when it is revealed.
Telstra are eager to place both feet back inside the door to NBN contracts, after it was shut by the Labor government when other contractors came in cheaper. Insiders also say handing construction contracts to Telstra will provide incentive to give up its ownership of the current copper network.
Many of NBN Co’s billions of dollars worth of contracts will be re-negotiated – including the $11 billion previous deal with Telstra for its copper network - so that the new Federal Government can bring out a slower, cheaper but faster and easier to install National Broadband Network.