Comparing telco investments in Australia and New Zealand.
The comparison is disturbing.
New Zealand proposes to spend $1.5 billion on an investment in broadband infrastructure. This investment will take place after the country has made structural changes to its industry – and it all makes perfect sense.
Australia is trying to invest $4.7 billion on its broadband infrastructure but is struggling to work out how to invest this money, since there is great uncertainly surrounding the environment in which this investment will be made.
In the case of New Zealand there is a very good possibility that the taxpayers’ money will be spent responsibly, as all the companies utilising that infrastructure will be profiting equally from the investment.
In the case of Australia there is a good chance that the $4.7 billion will go straight to the bottom line of Telstra, a company that is already one of the most profitable telcos in the world. While we hear the Minister saying that it absolutely will not happen, on paper (the RFP) there is no guarantee that this doomsday scenario will not eventuate.
If the Minister ends up with only one potential winner in the RFP process it will be very difficult to negotiate a good outcome – he will have his back to the wall.
New Zealand is clearly showing the way here – get your house in order first, before you start throwing your money around.
In the end, implementing such an investment plan will be as difficult in New Zealand as it will be in Australia, but in New Zealand that investment will at least rest on a sound foundation.
Paul Budde
See also:
- Australia – Government’s National Broadband Plan
- Australia – FttH Special Interest Group
- Australia – Labor Government Policies – 2008
- Australia – Competition Issues – 2008
- Australia – Deregulation Process 1998 – 2008
- Australia – Operational Separation of Telstra
- New Zealand – Telecoms – Overview and Analysis – 2008
- New Zealand – Regulatory Environment – Telecommunications Act
