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G9 fires back at Telstra for "useless" broadband report

By Ashley Clark
13 May 2008 02:12PM
Tags: g9 | telstra | useless | broadband | report

Telco consortium, the G9, has rubbished the network information that Telstra supplied to Government officials last week for its National Broadband Network bid.

The group has labeled Telstra's release as “useless,” claiming it does not provide the necessary information needed by bidders who want to provide detailed offers.

"Aside from a mathematical model the only ‘real world’ data available is a set of street addresses for telephone exchange buildings and average distances for
copper cables,” said G9 bid manager Michael Simmons.

The G9 is urging the Government to pass legislation that is set to be introduced into the Senate tomorrow.

The bill would force Telstra to release the required information to help bidders make accurate proposals.

Simmons believes Government intervention is the only way Telstra will release the extra information, and allow the bidding process to be fair amongst all competitors.

“For the sake of Australian consumers, today and into the future, [Telstra] must be forced to compete on a level playing field,” he said.

However, Telstra believes the report does in fact provide the information required by the Government and questions why the G9 is even discussing the report since it is has not put down the required $5 million to be an official bidder.

“My reaction is how would they know?" said Telstra spokesperson Jeremy Mitchell.

"Only serious bidders have access to the information, and to our knowledge they haven’t put $5 million bond on the table."

"It seems that those who are talking aren’t doing, and those who are doing aren’t talking.”

Simmons says that the G9 indeed does not have enough information about the network to make a proper bid and that rushing through the bidding process could mean major problems in the future.

"It’s difficult to commit $5 million to a bond to enable a compelling bid when the information they’ve provided isn’t sufficient, and that’s come from third parties who have looked at the information," he said.

"I think it’s really important to have more time, so we can have a compelling and competive bid."

"Rushing into tight time frames seems ridiculous, we don’t have the information to put a compelling offer in, I don’t understand what’s important about rushing this and ending up with the wrong outcome."

   


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Thoughts on this article? Add a comment below.
Comments: 7
The "G Whine" has started up!!!

The delay tactics continue at the behest of progress.

This is becoming a "joke" and would be funny if it wasn't so serious. The future prosperity of this country is being held back for the sake of Boptus. These guys dont get it that the "Gravy Train" ride is over and that they are overplaying their "Poor Little Optus" card which has worked for the last decade!!! The public are aware of their little game and they have had just as much time as Telstra. If not why did the G9 totally scrap their entire original 'wonder plan' and start over? And now have the hide to whinge that it's all being rushed through - lol!

Paul Sullivan and Michael Simmons would be better of going to "whingepool with the other "whingers.

iTnews - comments icon Posted by jimMay 13, 2008 2:37 PM
Get real Jim, without a level playing field what hope have any of us (consumers got). Ok, Optus might well be whinging but without them or some other telco keeping Telstra honset you, me and everyone else will be paying a fortune for technology that costs others a fraction where competition exists.
iTnews - comments icon Posted by PeterMay 13, 2008 4:22 PM
Let's cut out all of the crap... re-nationalise the landline infrastructure of the Telstra network, give everybody and anybody access to it and go from there. The customer has to be king... not the shareholder.
iTnews - comments icon Posted by Ian HughesMay 13, 2008 4:23 PM
Ian & Peter future technology come with a cost. I sure if you had a business you would let you competition have full access to your technological & customer information. now let get real G9 can get the required information if it puts up it cash, so far all they have put up is hot wind it time to put or shut boy's.
iTnews - comments icon Posted by MickMay 14, 2008 7:32 AM
"whingepool" ??
It is the voice of the Tech-Savvy consumers that want a network with comparable speed and plans as other countires without signing over their firstborn. These are also the people that their family and friends turn to for help and advice. Belittle and ignore at your own peril

As for Telstra's "progress, I don't think Optus and co. are responsible for delaying progress, they do that quite well on their own thanks very much.

Slowest, most expensive, least reliable and most restricted networks around and we want them to provide our future infrastructures unhindered. I don't think so

Time is well overdue for taking back Wholesale for the Government and see how Telstra go as retail operation.

iTnews - comments icon Posted by ChapsMay 14, 2008 9:51 AM
While in a perfect world, I believe the Government should own the network itself, I don't believe that its a requirement to ensure open access, fair competition.

Structural separation as a requirement for the NBN tender would allow all retailers to complete on a level playing field while allowing private enterprise to own the network.

Basically... If Telstra were to win in the current environment, They would be selling their own services over the network and also on-selling those services to other retailers (a regulatory requirement).

Look at history as an example of what is to come... Remember when Telstra upped their wholesale line rental charge to the point where their customers could rent retail phone lines for less than Telstra's wholesale customers could rent them.

I don't see what the Government has against structural separation of the winning bid. All it means is that the company who win the Tender cannot sell a retail service on their network, and as far as I see it, the only parties with anything to lose under that system would be parties who intend to extract monopoly profits and engage in anticompetitive behaviour.

iTnews - comments icon Posted by Alex MacaronisMay 14, 2008 10:49 AM
Alex...Your dreaming mate!!!Your first line says it all. ""While in a perfect world, I believe the Government should own the network itself".

Well mate they don't. Telstra does.


The talk of monopolies is not genuine as it is a fact that if no competitor can challenge their opponent with investment and superior products and service, them that challenger is being rejected by the consumer because his product is inferior. Forget the ACCC, forget the whinge of G9 the Australian public will decide. If as has been claimed Telstra prices are to high another investor who feels they can supply a cheaper product will soon appear.

iTnews - comments icon Posted by "The Truth"May 14, 2008 9:43 PM
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