Government needs to coordinate the various NBN segments
We all know that the stakes are very high in relation to the $43 billion NBN project and it is most satisfying to see that a high level of industry participation and broad agreement exists around the developments that need to take place. There is clear evidence of a passionate ‘can do’ approach. The trans-sector concept is certainly kicking in; which is leading to activities in and around the NBN – or perhaps more broadly around the opportunities of the digital economy.
All the way up to Prime Minister Rudd the government is showing leadership on these issues. As he had promised, the Minister has opened up the process to basically everybody involved – not just in the NBN itself but also to those in the various sectors who wish to be involved, to participate and contribute. The Trans-sector Broadband Forum organised by the government in late 2009 is a clear example of its vision and leadership.
At that forum we also discussed the next step in the process – the central coordination of all of these activities, many of which are now truly trans-sectoral. The reality, however, is that there are still many silos and many vested interests that need to be convinced of the need for a more horizontal approach in order to reap the synergy benefits the NBN has to offer in relation to our society and the economy as a whole.
With some financial support from the government Communications Alliance is playing an excellent coordinating role in the telco component of the NBN, and perhaps such a model needs to be explored further. Similar coordinating support funds should be made available to ensure that we are all moving in the same direction, and that we continue to do so.
While this industry consultative process is working well we need to make sure that every voice is heard. Of course the stakes are higher for some players than they are for others, and some people/companies put more effort into the process than others. There is nothing to be gained from sitting on the fence complaining that certain issues are not given enough consideration – positive and active contributions are needed from all players.
Having said this, in the end the government needs to take all the elements into account and judge whether all the issues have been addressed and treated fairly. Supported by their advisors they need to make sure that the vested interests on the various issues are weighted against the overall national interest. And I am not talking just about Telstra here. Many of the players engaged in the NBN process have their own vested interests and agendas; they include health industry (incl. insurers), electricity utilities, greenfield operators, wireless operators, satellite service providers, etc.
For example, we need to be careful that we don’t create a patchwork of little islands within the NBN by generating different implementation arrangements between greenfield and brownfield areas, and across different geographic jurisdictions or different sectors. We are aware that NBN Co is seriously concerned about this and wishes to make sure that there is one national architecture and design. The size of the project and the possible fragmentation based on different ownership, different business models and, of course, different starting points could mean that some of these islands could become the future blackspots.
Within the greenfield policy there is also a need for an equitable funding model. Currently it appears that in greenfield estates FttH will continue to be developer-funded, with costs being recovered against the price of house and land packages. This model of end-user funding differs from the expectation that FttH in established areas will be government-funded from the $43 billion that has been earmarked for the purpose, and thus creates an inequity in the market. The reduced control that accompanies the requirement for greenfield developers to make their own arrangements may also contribute to the development of isolated FttH islands that are not fully integrated into the NBN.
The various electricity companies have different plans regarding their smart meter/smart grid deployments. Enormous synergy exists here and some government coordination could be appropriate in this sector also, to ensure that the smart meter rollouts and the ONTs (optical network terminal) of the NBNs are coordinated. This could easily save more than $1 billion.
Perhaps the government needs to formalise the coordination of all the trans-sector activities that are taking place in these areas, and to allocate some seeding money to ensure that such coordination does take place. They are already doing this with Communications Alliance and similar models should be explored for the other segments as well.
Paul Budde
- Australia – National Broadband Network – Overview & Analysis
- Australia – National Broadband Network – Critical Considerations
- Australia – National Broadband Network – Competition and Regulations
- Australia – National Broadband Network – Deployment Strategies
- Australia – National Broadband Network – Early Projects
- Australia – National Broadband Network – Industry at crossroads
- Australia – National Broadband Network – NBN Co and Infrastructure
- Australia – National Broadband Network – Overview & Analysis
- Australia – National Broadband Network – Telstra
- Australia – National Broadband Network based on Trans-sector model
- Australia – National Broadband Network Trans-sector projects
- Australia – National Broadband Network – Government’s Trans-Sector Conference
