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NBN’s latest bizarre twist – Quigley decides to examine broadband options four years too late.

Published on: February 22, 2013

The CEO of NBN Co, Michael Quigley, has today proposed an inquiry into alternative technologies for very fast broadband to be carried out by the Communications Alliance, the peak telecommunications industry group.

This is the most bizarre twist yet in the debate over broadband policy. Even more bizarre because Mr Quigley has made the announcement without obtaining the agreement of the Communications Alliance to commission the inquiry.

For almost four years, ever since Labor’s $50 billion fibre to the premises NBN was announced in April 2009, the Coalition and many others have called for an independent, transparent review of the options for delivering fast broadband to all Australians. These calls were motivated by our concern that Labor had chosen the slowest and most expensive way of achieving such an upgrade.

We noted that Kevin Rudd had gone to the 2007 election pledging that no major infrastructure project would be funded by the Commonwealth without a rigorous cost benefit analysis and we urged Labor to honor that pledge with the NBN – the largest infrastructure project in our country’s history.

Throughout this period Mr Quigley and the Government repeatedly and scornfully dismissed such calls. And Labor’s NBN plodded onward, consuming vast amounts of taxpayers’ cash but providing broadband to only a tiny fraction of the 2 million or so Australian premises with inadequate service.

If the Government provides equity to NBN Co at the rate set out in the 2012-13 Budget, by June some $7.8 billion will be committed. NBN Co has entered into contracts that the MYEFO review of the Budget stated expose taxpayers to at least $2.8 billion in contingent liabilities. The amount spent on salaries alone at NBN Co is approaching $2 billion.

Yet despite all of this money NBN Co itself projects only 54,000 users will be connected to its fibre network by June 2013 – and few observers expect even that milestone to be achieved. As of December 2012 the number of users on the fibre network was only 10,400. Since the start of the ‘volume rollout’ more than eighteen months ago not a single household has been connected outside the Eastern States.

Now, just months from an election, Mr Quigley suddenly wants a review – but a hazily conceived and nebulous review on his terms and timing. This isn’t policy on the run; it’s policy chaos.

Mr Quigley must immediately provide answers to the following questions for his call to be taken with any seriousness:

Why has Mr Quigley rather than Senator Conroy announce the proposed inquiry?

Since when have such announcements been an matter for GBEs rather than the government of the day?

Who will determine the terms of reference, and what exactly is the inquiry’s objective?

How widely did Mr Quigley consult with the industry ahead of today’s call?

Why is the Communications Alliance, an industry lobby group, better placed to conduct this inquiry than independent bodies with economic expertise such as the Productivity Commission or Infrastructure Australia?

If the Communications Alliance declines to sponsor this inquiry, will Mr Quigley then request the Productivity Commission or Infrastructure Australia to conduct a formal, thorough inquiry into the various options for delivering very fast and affordable broadband to all Australians?

What role will prices for end users and value for money for taxpayers play in evaluating the alternatives?

Will NBN Co assist the inquiry by releasing all internal work its staff or consultants have performed on alternatives to the FTTP network, including any conclusions regarding the cost savings or lower end user prices that a switch to fibre to the node would generate?

Unless clear and credible answers are provided by NBN Co and the Government to all of these questions, Mr Quigley’s remarks today will be exposed for what they appear to be – a cheap stunt to distract attention from NBN Co’s appalling record in executing the rollout.

59 Responses to “NBN’s latest bizarre twist – Quigley decides to examine broadband options four years too late.”

Paul Hahn says:

Are you worried Malcolm? You should be. Yes you can huff and puff about questions that need to be answered, but what it will do is make you and the Coalition give detailed answers as to your own ‘non’ policy. Answers that will sink your farce quicker than the Titanic.

Abel Adamski says:

France has now announced it is discarding all Copper and will be FTTP wireless or satellite by 2025 at a cost of 20Bill Euro’s
I may well be wrong but I would believe that Both Quigley and Turnbull would have been aware of the impending French announcement. After all France is already partly FTTP and was rolling out FTTN, now completely discarding FTTN and Copper, and what is MT’s option for Australia, advanced Nations DISCARDS
Retaining copper is impractical and poor economics

That is why the vitriolic hissy fit from Malcolm.

P.S
Smart investment choices from our Merchant Banker Pollie
Guess good reasons why we don’t have Bankers providing essential national infrastructure

scarytas says:

Seriously Malcolm…give it a break. The time has come to stop demanding and start giving. You have argued long and hard about doing a CBA on the NBN and have committed any Liberal/National Government to undertake a CBA immediately upon taking over.

What I ask is simple: When will you publish the guidelines for any such CBA and will you abide by any recommendations that the CBA puts up?

Without such assurances your words are as empty as Quigley’s.

GENIII says:

“Labor’s $50 billion fibre to the premises”

Mal, you couldn’t even get 3 sentences in without the lies starting.

“consuming vast amounts of taxpayers’ cash”

Another lie.

“This isn’t policy on the run; it’s policy chaos.”

Sounds like the coalition. Can you say back flip, forward flip, and useless.

“Mr Quigley must immediately provide answers to the following questions”

We have been asking you for a very long time to answer our questions but you still avoid all questions that will show your FTTN for the dead horse that it is.

Mal, do us all a favour and retire before you make yourself look more of a fool. Surely your FTTP investments in France are offering decent dividends.

Anthony Wasiukiewicz says:

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Actually for the sake of an honest argument, the NBN does consume taxpayer cash.
But not enough to be seriously significant on a Per Annum basis.

‘vast’ is a description as good as a length of string.
And Turnbull is being politically misleading

It’s easy to calculate how much it’s costing the govt. And it’s all in the corp plan.
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Daniel says:

Your forgetting FTTN is in the past multiple times tried and yet you continue to lie to us.

Your the one who is stuck in the past.

Anthony Wasiukiewicz says:

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Because that’s where the memory of Howard lies…
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Daniel says:

And stop attacking Mike Quigley.

You have done this about 10 times already, including when he was appointed as CEO of NBN.

Daniel says:

Perhaps Read Nick Ross’s new article on the differences of the Your NBN and Labor’s NBN..

http://www.abc.net.au/technology/articles/2013/02/21/3695094.htm

Anthony Wasiukiewicz says:

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He likely has.
At the same time Grahame Lynch did…..
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GENIII says:

While holding each others cock telling each other how good they are.

What an utterly disgraceful rant, Mr Turnbull.

Full of demonstrable errors, misrepresentations of Mr Quigley’s statements, and hypocrisy.

So much for you calls for the abandoning of rhetoric and an improvement of the political debate. Maybe you should lead by example.

Dave says:

Once again demanding answers of others, yet providing non yourself.

Give a little and you may receive.

Unless of course you’ve got nothing to give that won’t jeopardize your position entirely.

Anthony Wasiukiewicz says:

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Turnbull is likely scared of the findings.
Afterall, what has he got to loose?
Why all the Bro ha ha?
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Peter says:

Instead of just talking about maximum download speeds, if you are next to the node. What we want to know what is the guaranteed Minimum Download and Upload Speeds (yes upload is just as important) and what is going to happen if these minimum speeds cannot be achieved.

Anthony Wasiukiewicz says:

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“The working groups under Communications Alliance designed the original reference architecture for the NBN several years ago,” he noted.

“Of course industry remains vitally interested in the directions in which the network might sensibly evolve and develop over the course of a multi-year rollout program.

“For such a project to proceed it would need to feature a broad and inclusive, evidence-based debate that could sit above the level of politics in this, an election year.”

http://www.itnews.com.au/News/334118,quigley-calls-for-industry-to-inform-nbn-debate.aspx
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raoulrules says:

Mr Turnbull,

The NBN has become a liability with the cheer squad becoming smaller by the day like the Skeksis. The NBN is all over the shop and is a revolving door.

Some articles by a few online bloggers have no foundations with just empty slogans. I am sure the silent majority will see the faster and cheaper broadband from the Coalition come to fruition.

Anthony Wasiukiewicz says:

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Skeksis – Isn’t that a fairy tale RR?
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What evidence do you have to provide that the ‘cheer squad’ is getting smaller?
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Again, Malcolm you should reside in the faith that people like RR still ‘argue’ your cause, even without any data… As you haven’t provided any.

“Empty slogans” – Like your claim that the cheer squad is getting smaller?

Faster and Cheaper? Really?

HOW????????

Where are the measurements?
Where are the reports?
Where is the analysis?
Where is the costings?
Where is the proof?

BT?
So there copper length is the same as ours is it?
So there copper age is the same as ours is it?
So the copper has been maintained the same as ours had it?
So there copper is owned by a vertically intergrated monopoly is it?
So their housing density is the same as ours is it?
So there economy is the same as ours is it?

Faster and Cheaper = LESS

Less fibre
Less Distance
Less speed
Less UPLOAD!!!!!
Less lifespan
Less competition

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Malcolm give us some hard data to work with!!!!!

You say you can deliver it cheaper and faster? How!!!!!

How much is it going to cost for HFC upgrades?
How much for FTTN?
How much for wireless?

How much wireless do you plan?
How much satellite?
How many nodes?
What is the longest distance from premise to the node?
What is the shortest distance?
What is the average distance?
How much are the nodes going to cost to maintain?
What are the cooling technologies used?
What type of batteries are used?
How many homes can get VDSL with Vectoring?
How much copper will need to be replaced?
How much is it going to cost the end user?
How much UPLOAD is allowed for?
How many people will be able to get 80mpbs?
At what cost?
How many people will get 12mpbs?
At what cost?
When will HFC get upgraded?
When will HFC get overbuilt with FTTH or RFOG?
When will FTTN get upgraded?
How much will it cost for a direct fibre link?
How much will it cost for p2p?

And many many more…….

To many questions Malcolm. And the ‘Finance Guru’ who depends on numbers, still supports you even though you haven’t given any!!!

Now that is Faith if I have ever seen it!!!

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I hope this is how you imagined your career MT….

A whole lot of spin, with no detail…
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Do the maths people! Seriously!
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Anthony Wasiukiewicz says:

Appologies for the incorrect use of ‘there’.
Please substitute with ‘their’.
aw

Dominique M says:

OK here’s what you’ve posted:

> Now, just months from an election, Mr Quigley suddenly wants a review – but a hazily conceived and nebulous review on his terms and timing. This isn’t policy on the run; it’s policy chaos.

And here’s what the AFR says:

> The study appeared to be aimed at putting to rest ongoing arguments over the most cost-effective and viable method of rolling out fast broadband to Australian homes.

I hate to point it out because it’s seems like such a trivial statement, but what Mr. Quigley seems to be trying to do here is not to find another technology for rolling out the NBN. Of course, in some terms, FTTB is going to make sense for some premises or the exact circumstances of ADSL DSLAMs in TUSMA areas are of importance, but this is not about the vast majority of the NBN.

It seems to be to stop once and for all the claims that FTTN is the most cost-effective or viable method in the *long*-*term* for a large enough numbers of Australian premises. Or the claim that FTTP over FTTN is going to be a cost-effective solution once more than a minutest fraction of premises want FTTP over-the-top.

Australia deserves this discussion about infrastructure.

I have faith in Mr. Quigley to conduct this as an apolitical debate, and he deserves credit for that and the coalition would be wise to acknowledge his results. The fact that this has been announced by NBN Co rather than the DBCDE should be taken as a sign of that, even if it is just symbolic.

Daniel says:

Now on 774 Radio trying to get Mike Quigley to Admission of Failer when it’s you that should admit failer.

Perhaps in future tell us the truth – you are not justice, you are not law.

Jimd says:

The “cheer squad becoming smaller” raoulrules. Maybe in the imagination of you and the troll armies rr but funny, I just joined and I’m going to help hammer the guff peddled by the likes of you, Malcolm Turnbull and Tony Abbott until September and beyond. Mr Turnbull is simply jealous the NBN wasn’t implemented by him. That’s his achilles heel, like Kevin Rudd- vanity .

Chris says:

Oh my god Turnbull, will you quit spinning BS!

Quigley is only requesting it due to you constantly spinning crap!

It will cost MORE and take LONGER for your plan, due to the state of the CAN. And also the huge amount of power that will be required to power 80,000 odd nodes. Oh cant forget the amount of batteries required.

And saying HFC will be fine? Have you bothered to investigate the huge amount of congestion on HFC?

As for the $50b.. where do you get that from? And it is NOT being funded by taxpayers!

$27b is being funded by bonds which will be repaid by NBNCo PLUS INTEREST. The other $11b is funded by private investment!

I think you should read the below article, as well as your suppoorters like raoulrules and others.
http://www.abc.net.au/technology/articles/2013/02/21/3695152.htm

Tony says:

What are you afraid of malcolm? Quigley is simply wanting to show what a waste FTTN is.

If you were so confident you were right I would have thought you would welcome this news.

Trying to pull the wool over the eyes of Australians are you Malcolm?

AJ says:

Bring It ON

Can’t wait for you to be exposed as the liar you are.

Bruce Wallace says:

It is obvious.
Quigley is asking for this to shut you up for once Mr. Turnbull.
He realises that Abbott is going to be the next P.M. and that means an unholy mess with communications from you and Abbott.
He knows what is the best plan for this country.
I do not want us to go back to the 20th century in communications that will happen with your plan Mr. Turnbull.

Able Amadowski says:

Malcolm Turnbull is happy to have fibre optic rolled out to his electoral office at tax payers expense, but refuses to allow normal Australians to have the same priviledge.

Jimd says:

He’s also very happy to invest in fibre to the home in France. Any updates on how that rollout’s going Mr Turnbull?

Abel Adamski says:

France has now announced it is discarding all Copper and will be FTTP wireless or satellite by 2025 at a cost of 20Bill Euro’s
I may well be wrong but I would believe that Both Quigley and Turnbull would have been aware of the impending French announcement. After all France is already partly FTTP and was rolling out FTTN, now completely discarding FTTN and Copper, and what is MT’s option for Australia, advanced Nations DISCARDS
Retaining copper is impractical and poor economics

That is why the vitriolic hissy fit from Turnbull

Yes the merchant bankers investments are going well indeed

Darren says:

“Will NBN Co assist the inquiry by releasing all internal work its staff or consultants have performed on alternatives to the FTTP network, including any conclusions regarding the cost savings or lower end user prices that a switch to fibre to the node would generate?”
Hopefully it will take into account the very short usefull life of FTTN, the cost to upgrade it and the resultant higher prices your plan would produce.

Aaron says:

Should be great to see. You should be scared malcolm – you’ll be exposed as a lying fool.

John says:

Anyone who still believes Malcolm’s claim that the NBN under Liberal will be cheaper and faster should read the article at http://www.abc.net.au/technology/articles/2013/02/21/3695094.htm

I would happily vote Liberal if they would just accept that the currently proposed NBN is in the best interest of Australia and stop playing politics with such an important issue.

Our current experience is this – we pay Telstra over $1,600 a month for a business grade connection of 5Mb/s down, 5Mb/s up with 100GB download limit. The cost under the NBN from iiNet would be $154.95 for 100Mb/s down 40Mb/s up with 1,000 GB download limit. That’s 20 times faster, 10 times the amount of downloads and 10% of the price.

Under Malcolm’s proposal he would not even be able to give me an indication of the download or upload speed they could provide – because it will either be an ADSL connection using 30 year old copper (which is no longer maintained), a VDSL connection, a HFC connection, a wireless or a satellite connection.

And the NBN as it currently stands provides a Return of Investment of 7% in the long term – how is this wasting taxpayers money as the Liberals claim?

The reality is that Malcolm’s proposal will be slower and more expensive. The only reason Liberal can still claim that their policy will result in a cheaper and faster NBN is because people have not done their research.

Please spend 10 minutes researching the two NBN proposals and make up your own mind.

Please encourage the Liberal party to continue with the NBN rollout as it currently stands and I will be voting Liberal as well.

[...] a blog post late on Friday, Turnbull said that the proposal was “bizarre” because Quigley made the [...]

Renato says:

Malcolm
I expect facts from you – not fiction. Please leave the fiction to Mr. Abbott.
IMHO, this Nation would be better served by arguing the coalition’s NBN policy by stating the FACTS. Cut the obfuscation, misinformation and spin. Back up your statements with data to support the facts.

You have many agendas on this issue and people can see through them.

You are paid by the tax payer to act in the interests of this Nation – not the Liberal Party nor self-interested business groups.
If Politicians executed their responsibilities to this Nation first – not their damn parties – everyone would be better off.

Neville says:

I have no clue about what the NBN is about. All I know for sure is that the current one will be built in the next 10 years. If the libs have something better why don’t they say so? I’ve heard of a different but the same thing they want. Great but without telling me what it is and when it will be done and how much ( even though I couldn’t care how much as it’s all wasted ) why should I take any notice of you?

[...] communications minister Malcolm Turnbull isn’t about to pass up on in a hurry, especially if his latest  invectives are anything to go [...]

Jason says:

What Turnbull represents is incredibly depressing. More so, the seeming likelihood that he will be a Minister in the next government and implement this madness.

[...] the suggestion was violently rejected by Turnbull, who sees it as a “cheap stunt to distract attention from NBN Co’s appalling record in [...]

[...] the suggestion was violently rejected by Turnbull, who sees it as a “cheap stunt to distract attention from NBN Co’s appalling record in [...]

Kevin Cobley says:

Mal should put his mouth where his money is !and all the dough is in FTTH.
I would like to see Mal live on my node where 3 weeks a year it’s off (internet and phone) and very time it rains speeds plummet as they do in peak hours, and I’m less than a klm from the exchange so I’ not going to see any fix under Mal’s scheme he’s talking nodes to “the last mile”, the real problem is the copper in the last mile!
FTTN is only going to be cheaper if FTTH is never built, all Mal is doing is kicking the can down the road.

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geniidumbucket says:

GenIII – 100 million sperm and you’re the moron that got through. Please eff off to North Korea where scumbuckets like you belong.

GENIII says:

“Pathetic commenters”

wow you didnt even change your writing style (but i notice you have changed your name) before you came back here.

Once again thanks for your well thought out arguments.

buenos dias acabo de enterarme de tu web y la verdad es que me parece genial no sabia de mas personas interesadas en estos temas, aqui tienes un nuevo lector que seguira visitandote a diario.

James says:

The NBN cheer squad never batted an eyelid when the estimated cost moved up and down by tens of billions of dollars. Once FTTP was mentioned that was it, they wanted it at any price.

And anyway, Conroy has them convinced they won’t actually have to pay for it, by playing a thimble trick with off-budget outlays, public ownership, and a “commercial rate of return”. As if a monopoly would fail to reach any revenue target it aimed for; and as if paying it off in future monopoly prices rather than future taxes makes it any easier for the public to fund.

Like the infamous Sydney Cross City Tunnel, the revenues are underwritten by a government commitment to do whatever it takes to ensure Australians cannot get fast broadband without going through NBN.

That’s not efficiency — efficiency does not need a monopoly. It’s not overdue retirement of obsolete infrastructure either — if it were, then the Telstra and Optus HFC assets would be worthless and there would be no need for the taxpayer to pay billions to shut them down.

If FTTN creates a high demand for FTTP then guess what — under the free market carriers will be allowed to meet that demand by extending fibre from the node to the premises. Who’s going to stop them? Do you think Minister Turnbull is going to say “That’s all folks, no one is allowed to add anything to the broadband infrastructure”?

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GENIV says:

Hello GenIII,

You can be smug all you want. Your beloved Conroy will soon be out on the street, as will Gillard and Rudd. So… take solace in your family’s open arms, because that’s all you’ll have left, your political heroes will be the zeroes they’ve always been.

Thank you very much and please, eff off.

Yes, thank you.

No, really, thank you.

Yes, I really mean it. Thank you for supporting Labor scum. The country needs more idiots just like you. Congratulations.

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Neville says:

I only have one question. Which network when completed will need upgrading again sooner? FTTN or FTTH? If the state of copper is as bad as Telstra and others claim I can only assume the 100’s of billions needed in the future after the FTTN fails will be the nail in the coffin to the Australian economy. Good work Libs :(

GENIII says:

Wow you bought so much to the discussion.

Thanks.

Pathetic commenters says:

How about a polite EFF YOU, Mr GenIIIuscumbucket. All you want is everyone else’s money for your own slice of NBNirvana.

Well, please EFF OFF. Friggin fund it yourself you selfish pie-hole filler.

I AM SICK TO DEATH OF SOCIALIST COMMIES WANTING EVERYTHING AT THE EXPENSE OF EVERYONE ELSE.

Please MOVE TO FRIGGIN’ CUBA or NORTH KOREA. You will be welcomed with open arms.

Thank you.

GENIII says:

Ok ill bite,

“How about a polite EFF YOU, Mr GenIIIuscumbucket”

Thanks for this i had actually forgotton the last part of my monkia.

“All you want is everyone else’s money for your own slice of NBNirvana.”

I dont need nor want anyones money for the NBN. I will be one of the happy paying customers that looks forward to enjoying the benefits the NBN brings to myself and this great country.

“Well, please EFF OFF. Friggin fund it yourself you selfish pie-hole filler.”

Wow a new job for me? When do i start?
As stated above i will be funding a small slice of it when i pay my RSP to use it and enjoy all the benefits it brings with it.

“I AM SICK TO DEATH OF SOCIALIST COMMIES WANTING EVERYTHING AT THE EXPENSE OF EVERYONE ELSE.”

You really didn’t think this part through did you? But to answer the 2nd part of your rant i dont want anything at anyone elses expense as stated above im quite hapy to pay for my share via an RSP.

“Please MOVE TO FRIGGIN’ CUBA or NORTH KOREA.”

After you sir.

“You will be welcomed with open arms. ”

I dont need to leave the country for this, im welcomed home every afternoon after work.

“Thank you.”

No, thankyou.