Tag: National Broadband Network

Articles – The Age

Buy or beware – competitors gear up to do battle with NBN

No NBN price war, despite competition

My Comments

There have been some recent articles about next-generation broadband services appearing in or being planned for particular locales in Australia that compete with the government-backed National Broadband Network.

UK and France offering competitive broadband service

Two countries, namely the UK and France, have established the idea of competitive next-generation broadband after their success with achieving competitive ADSL broadband Internet service. This is because the governments in these countries have worked ahead by establishing a mandatory competitive telecommunications regime including encouragement of local-loop and sub-loop unbundling. They have even ben cited by the European Commission as examples when it comes to broadband-Internet service being competitive and affordable for most people.  

In France, the government have encouraged competitive fibre-to-the-premises service in the form of two methods. The first method is for one or more providers to share infrastructure, especially that which goes “to the door”, while the second method permits a provider or provider coalition to have their own fibre infrastructure “to the door”. That same country also encourages unbundled local-loop ADSL provisioning or “degroupage” in order to see competitive ADSL broadband service.

In the UK, the government is encouraging Unbundled local-loop ADSL provisioning and there are companies who are setting up or planning local next-generation broadband infrastructure in certain cities, towns and villages. These setups, which are based on either fibre-to-the-cabinet with VDSL copper runs or fibre-to-the-premises technoligy, are even being done as a way of giving rural households access to real broadband even though Openreach, the UK company in charge of the wired telecommunications infrastructure, are taking their time to provide this service. As well, Openreach is slowly rolling out a next-generation broadband network that will work on either fibre-to-the-cabinet or fibre-to-the-premises technology.

The Australian next-generation broadband direction

In Australia, regular wireline broadband is provided through one of two methods. Cable-modem broadband is provided by Telstra or Optus in the major capital cities or through TransACT in Canberra or Neighborhood Cable in Geelong, Ballarat or Mildura. These companies own their own cable infrastructure “to the door”. ADSL infrastructure is provided by different retail providers who either resell Telstra ADSL service or through Optus who either may resell Telstra service or use local-loop unbundling. Recently, some other ADSL providers are selling retail ADSL broadband in a “local-loop unbundled” manner with a few offering “naked ADSL” service which doesn’t provide classic landline telephony on the same line.

The Labor Party had started action on the National Broadband Network which is to be a fibre-to-the-premises network covering most metropolitan, regional and rural areas of Australia with wireless and satellite technology to cover the rest. It was also intended to be a replacement for the copper telephone network that is managed by Telstra and there was the idea for Telstra to decommission this copper network and hand it over to the National Broadhand Network authority. This is in a similar manner to how the Openreach entity has come about when it came to provisioning wireline telephone and broadhand service in the UK. Lately, there was a key issue raised about the service being delivered on an “opt-out” arrangement with customers being charged AUD$300 if they don’t have their property connected to the NBN during the actual rollout and want to continue with their classic phone service at their property after the copper network is decommissioned.

TransACT and Neighborhood Cable are offering National Broadband Network their infrastructure at a price that suits them or they will run a competing next-generation broadband service in their operating areas. As well, i3 Group are working with the Brisbane municipal government to set up a fibre-to-the-premises next-generation broadband service in inner-north Brisbane and intend to run it as a competing service if National Broadband Network set up infrastructure there.

At the moment, the main markets to watch when it comes to next-generation broadband are the metropolitan Sydney and Melbourne areas because of them being population centres in Australia. It will be interesting to see whether companies or local governments will set up next-generation broadband infrastructure there in competition to National Broadband Network.

Questions to be answered

One main question that is to be answered is whether it will be feasible for competing infrastructure providers to set up shop alongside the NBN especially in major markets. This includes whether a building landlord or body corporate can have control over the provision of infrastructure for competing service providers.

Another question is whether IP-based broadcasting and voice / video telephony will be controlled on the NBN so as to prevent access to the network by competing IP-based telephony and TV providers. This may be a game changer when it comes to the provision of subscription TV through Australia because it could open up a pathway for retail operators and others to offer competing or complementary multi-channel TV services. It may also affect IP-based telephony providers like Skype or “virtual-network operators” who don’t own their own infrastructure locally but want to provide competing or complementary telephony services.

Conclusion

If there is a desire to see competitive next-generation broadband service in Australia, there will have to be rules and regulations set up to ensure this kind of competition and if the government is serious about this, they should look at what France and the UK are doing to achieve the competitive broadband market there.

This morning, I listened to the ABC 11am news broadcast and read an article in “The Age” about the National Broadband Network being established in Tasmania on time and under budget (which I had written a post about). There was the typical response from the Liberal-Party / National-Party Opposition about it being a waste of money even though there was around a 50% takeup of the service according to these news reports.

The Opposition need to look beyond the perceived waste of money by assessing the value that the infrastructure will bring to that area. One thing I always think of in relation to any improved-broadband technology is that it could increase the area’s attractiveness to business or education / research. Then, whenever there are major employers in that state that support these high-value industries, there is also the likelihood of supporting businesses becoming established in order to serve the employees in these industries.

As I have said in previous posts on this site, it would be worth that the Opposition looks at countries who are deploying FTTH broadband setups like France and observe how many people are taking up these services. They should look at fibre-copper setups like Germany’s VDSL2 services and see whether these are also being set up to be future-proof with FTTH fibre.

 Coalition will ‘wind clock back’ with NBN axing – ABC News (Australian Broadcasting Corporation)

My comments

I have observed other countries like the UK and France push on with next-generation broadband Internet developments and they have taken various initiatives to achieve this goal.

In some cases, most notably in the UK, local communities had set up localised next-generation broadband deployment for villages and other areas which wouldn’t be serviced by this kind of broadband, let alone any broadband service. As well, a lot of European towns are “wiring up” with some form of fibre-based next-generation broadband and there has been efforts in place to assure competitive service to the customer’s door.

Similarly, Finland took the bold step of having broadband Internet with a minimum speed of 2Mbps declared as a universal service in the same manner as a home telephone or mains electricity.

At the moment, we have situations where people in the country cannot get proper broadband service either through issues like distance to the exchange or very old telephone infrastructure; and we have a common situation where people have to count bandwidth used because of ridiculously expensive Internet-access tariffs and quotas. In some cases, we have situations where multimedia Internet like Internet radio or YouTube streaming video cannot be enjoyed especially during the late afternoon in a metropolitan area due to poor bandwidth allocation.

Is the Coalition intending to provide us with a lesser-standard next-generation broadband service or why are they simply doing this? If there is an alternative solution being proposed for an improved-technology broadband infrastructure, it needs to be cheap to maintain, including low failure rate; cheap to adapt to changing demainds as well as being cheap to establish. It also must be able to provide robust always-live broadband-class Internet service to rural and remote households as well as more dense communities. Finally, the service must see a decent increase in value for the amount the customers are willing to pay.

Whoever gains power in the Australian Federal Government should look at what the UK, France and Scandinavia are doing to assure their citizens of proper value for money as far as broadband Internet service is concerned.

Electoral Disclaimer

This comment is based on my observation and research of other countries concerning their provision of Internet access and service and is a viewpoint expressed independently of any political candidate or party contesting the current Australian Federal Election.

There has been recent news coverage regarding the upcoming National Broadband Network that the Australian Government has recently launched. Initially it was meant to be a fibre-to-the-node setup for most of the populated areas built by a private company who has won the government tender to build it. The last year was dogged with so much bickering about whether Telstra, Optus or other companies and consortia are fit to build the network. Now the Australian Government wrote off the tenders and decided to make the network a publicly-funded “nation-building” exercise on the same scale as the Snowy Mountains Hydro-Electric Power Scheme.

Their idea would be to cover 90% of Australian premises with “fibre-to-the-premises” service with the remainder served by high-bandwidth wireless or satellite connections. This will be with Tasmania being a test-bed for this service and greenfield developments being prepared for fibre-to-the-premises.

But there are a few questions that need to be asked concerning the deployment of this service.

Deployments in multiple-tenant-unit developments

In most of the densely-populated areas of Australia, there are many multi-tenant-unit developments like blocks of flats, office blocks and shopping centres with many households and/or businesses in the same physical building. Similarly, there are high-density developments where multiple households or businesses in many buildings exist on one privately-owned block of land. There have been two different ways of connecting these buildings to a fibre-to-the-premises network.

The cheaper method, known as “Fibre To The Building”, is to run the fibre-optic network to the building’s wiring closet, then use copper wiring to bring the service to the customer’s door. This may be achieved through dedicated Ethernet cabling to the office, shop or apartment or use of existing wiring that is used for providing telephone or TV service to these locations but using VDSL2 or DOCSIS technology to move the data on these cables.  It would be similar to the “Fibre To The Node” setup which was originally being considered for the National Broadband Network, except that the coverage of a “Node” would be the building.

The other method, known as “Fibre To The Premises” or “Full Fibre To The Premises” would be to run the fibre-optic network to the customer’s door.  This would be similar to how the fibre-to-the-premises network would be provided to a sole-occupancy building like a house and would have a fibre-optic socket or optical-network terminal in the premises.

This issue could be answered by prescribing an installation standard for setups in all current and future multi-tenant developments or by allowing the building owner / landlord to determine which methodology to use for their property. Similarly, there would be the question of whether an existing building should be cabled the moment the infrastructure is rolled out past it or

Carriage of TV and telephone service over the NBN

There has been talk about the high bandwidth availability being the key attraction to the National Broadband Network. This has brought up the concept of video being transferred through the NBN and this may be considered a threat to commercial television and its stakeholders.

Most, if not all, of the high-bandwidth broadband networks in operation or currently being deployed are answering this issue by providing free-to-air and subscription television service through the networks. This has also allowed supplementary services like catch-up TV or video-on-demand to be provided over the same network. As well, the companies who provide retail Internet service based on these networks typically will resell subscription TV service with the service being delivered over the same pipe. There is also benefit for community and vertical-interest television providers because they can use the same bandwidth to broadcast their shows.

The standard for TV service that is available with this broadband technology would be a “best-case” standard which permits full high-definition picture with at least a 5.1 channel surround-sound audio mix and full two-way interactivity.

The landline telephone service hasn’t been mentioned in any of the discussion about the National Broadband Network. Yet it can benefit from the same technology through the use of VoIP technologies. This can lead to cheap or free calls around the country and can lead to households and “Mom and Pop” business users having the same kind of telephone service that is taken for granted in most of big business and government.

The same technology can bring through telephone conversations which have a clarity similar to FM radio. This would benefit ethnic groups who have a distinct accent; women; children; people with a speech impediment as well as voice-driven interactive telephone services. As well, the concept of the videophone, largely associated with science fiction, can be made more commonly available.

Could this be the arrival of the “single-pipe triple-play” service on the Australian market?

This is best exemplified by the typical “n-Box” (Livebox, FreeBox, Bbox) service that is being promoted by nearly every major Internet service provider in France. It is where a customer buys or rents an “n-Box” which is a WiFi router that connects computers to the Internet and works as a VoIP analogue telephone adaptor for two phones; as well as an IPTV set-top box that connects between the “n-Box” and the TV set. The customer pays for a single-pipe triple-play service with cut-price telephony, broadband “hot-and-cold running” Internet and many channels of TV.

Universal-access service and the cost of the service

There is the promise of 90% coverage for Australia but will this promise be of reality? As well, there will need to be a minimum standard of service for all to benefit from the Internet using this technology.

I have talked elsewhere in this blog about achieving a standard of universal access for the Internet in a similar manner to the landline telephone service and other utilities. Issues that may need to be raised include reserving funds for the big infrastructure projects that need to reach certain communities and whether to create subsidised access plans which provide a basic level of service at a very low price or for free.

This would then cover access to decent Internet service for disadvantaged communities including indigenous people, income-limited people and migrant / expatriate communities who would benefit from this technology.

Conclusion

Once the questions regarding about how the National Broadband Network will be implemented are answered, we will be able to gain a clearer picture of the service that it will provide for all customers.