Myopic NBN economics
Bill Glasson is an opthalmologist from Winton in Western Queeensland who now chairs the Regional Telecommunications Independent Review Committee. His Committee is doling out more than $60m in subsidies for rural satellite phone bills, indigenous phone services and remote broadband. His view on Telstra's proposal to upgrade it's urban cable network?
"Dr Glasson said it was not in the nation's interest to 'build two bridges over the same river five metres apart'." Extract from The Australian
Sure it is. Competition isn't roadworks, Bill.
It is absolutely in the interests of consumers and the market to have competing offers on a crucial infrastructure like the NBN. Five meters apart or nose-to-nose. Just imagine how much more insufferable Qantas would be if it were not for VirginBlue, or for V and Delta across the Pacific. [Hmmm... Maybe Bill won't like the Qantas analogy. After all, Winton is their home town too. Could that explain....?]
We can safely assume that if Optus elects to spend $billions on a parallel cable network then they think they've got a winning proposition (for consumers) that will return them a big profit. And you can assume that Telstra has also factored in this risk. Let the games begin!
Posted on 03/12 at 01:59 PM.
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