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Sunday, June 24, 2007

Access to Broadband - The Defining Issue


For me there is no other issue than the current governments attitude to broadband (Fraudband?) that defines their has been status. It is all catch up. Australia is a third tier nation in world rankings of internet infrastructure, with large sections of the population unable to access even modest broadband.

The technologies currently used, ADSL and wireless are plagued with inconsistent service, are relatively slow and relatively expensive. The monopoly telco, Telstra, which was privatised without really thinking through the current requirements for telecommunications services, by the government, wants to build the next big super duper mega fast roll out, keep all the customers and charge about three times what we are currently paying for our service.

So Australian in business strategy. Set up a monopoly or if you have to, a duopoly and carve up the market. How about some real competition. Thank goodness for the ACCC, who at least stand guard over predatory and monopolistic practices, which many Australian businesses seem to favor.

Whatever happens, Australia is likely to move up to the second tier in the next few years, once the men with the money figure out how to line their own pockets. A net positive I suppose.

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