Telstra Flicks the Switch in Shadey Deal
Telstra Flicks the Switch in Shadey Deal
October 11, 2007: Thanks to $98 million in grant money, Telstra have announced they will finally flick the switch and enable ADSL in 211 exchanges across the country which were previously unable to access broadband. The only problem is some of these exchanges can already access ADSL services and the grant deal paying for the switch to be turned on is having doubt cast over it.
The Australian Broadband Guarantee (ABG) is aimed at providing broadband services wherever there is a ‘blackspot’ or area where no broadband is currently available. Towards this project has been flung a decent chunk of government change to the tune of $163 million.
“The Australia Broadband Guarantee provides a safety net for all Australians who cannot receive an affordable metro-comparable broadband service.” Communication Minister, Senator the Hon Helen Coonan said.
Today’s announcement from Telstra and the Communication Minister, Senator the Hon Helen Coonan will see ADSL services ‘turned on’ in 211 exchanges, the only problem is some of those exchanges already have ADSL services active and available.
“There is 3 out of 211 exchanges where ADSL is already being provided by somebody other then Telstra” says John Lindsay, Carrier Relations Manager at Internode.
Put simply, Telstra is using ABG grant money to finance ADSL services in exchanges where other internet providers already have services, which can hardly be called a ‘blackspot’ if ADSL is available there. Lindsay explained that those exchanges are Coonalpyn, Tintinara and Minlaton which are all clearly identified in Senator Coonan’s press release as being part of the 211.
The governments own website states that “The Australian Broadband Guarantee will fill in those broadband blackspots remaining, whether in metropolitan or rural Australia” which reinforces the intention of ABG money to go where there is no existing broadband services.
Looking further into the deal reveals that many of the exchanges Telstra are being paid to enable ADSL access in have already had the technology installed. Which translates to the ABG grant money being used to pay for installations that Telstra performed last year but was unwilling to turn on.
“Telstra had already built the ADSL technology, as a result of our building efforts (in the three exchanges) we could see that Telstra already had the capability to turn ADSL services on last year” Lindsay explained.
With regards to the other exchanges which have no ADSL services from anyone, they could genuinely be considered a ‘blackspot’ in dire need of broadband services. The problem here is that Telstra are only enabling ADSL1 services, when they could quite easily and for no extra cost enable ADSL2+ services which can be up to ten times faster depending on your distance from the exchange.
According to Lindsay, you cant buy ADSL1 only exchange equipment these days, the equipment Telstra has already put into exchanges is quite capable of servicing the much faster ADSL2+ product, Telstra is just unwilling to enable it.
This is backed up by the Australian Consumer and Competition Commission (ACCC) who told the AFR Broadband conference back in August the same thing.
“Telstra could simply flick the switch to light up areas without ADSL2+ but it won’t do it” says Michael Cosgrave, Group Manager Communications at the ACCC said . “Telstra is uninterested in offering ADSL2 services unless a competitor has already started offering it in that exchange” he said.