Telco entrepreneurs slam NBN, propose new multi-technology network for $3 billion

A group of telco entrepreneurs, including Pipe Networks founder Bevan Slattery and AAPT chief executive Paul Broad, have released a manifesto for the future of broadband, denouncing the NBN and proposing a new type of network using multiple technologies including the use of 4G broadband.

The release comes after Exetel chief executive John Linton posted on his blog yesterday the NBN should be abandoned, saying the prospect of 1Gbps speeds is “just plain stupid”.

The statement also comes as the future of the NBN remains uncertain, with political negotiations in Canberra continuing. Tenders and hiring at the NBN Co. have stopped while a government is formed.

The release was written by several entrepreneurs in the mid-tier telco market, including Vocus founder James Spencely, Eftel chief John Lane, BigAir chief Jason Ashton and Allegro Networks founder and chief executive David Waldie.

Ashton says the plan puts a large emphasis on mobile technology, saying the market is heading towards mobility and wireless internet is the future.

“That mobility would give access to rural areas, and places that don’t already have broadband connectivity. There is a global shift towards mobility, and both the Government and Coalition are overlooking that. They expect the existing mobile networks to take care of that.”

“A 4G network would have incredibly capacity, and combined with a 3G or 4G modem, could easily be used as a fixed broadband replacement.”

The proposed price of $3 billion requires, as Ashton says, “more analysis and investigation”. However, he says networks are already interested in mobile technology and such a venture would “naturally attract private equity”, with government intervention necessary for blackspots where it is uneconomic for companies to build.

Together under the name, “The Alliance for Affordable Broadband”, the entrepreneurs say while national broadband capability is as important as railways were in the late 19th century, the current fibre-only NBN policy has “failed to convince” and there is no mass requirement for speeds of up to 1Gpbs.

As a result, the group says the greatest priority is to give broadband access to those that don’t already have it, with an emphasis on schools, hospitals and businesses. It says a “combination of technologies” will deliver the best outcome, in a plan they call the third version of the NBN. The plan would include:

• A 4G mobile wholesale network, covering 98% of Australians at speeds of up to 100Mbps.
• Fibre or equivalent high speed broadband to schools, hospitals and most businesses at speeds of up to 1Gbps.
• Fibre-based solutions for areas of “demonstrated need via commercial return”, or where there is a demonstrated improvement in productivity.
• Satellite in remote areas, with speeds of up to 12Mbps.

These technologies would be rolled out in a public-private endeavour, with incentives offered to help solve Blackspots.

“For example, in wireless, consider offering the 4G spectrum asset with the obligation to build a national wholesale only 4G network, delivering 100Mbps over say 98% of Australia, and to start and finish within a term of government, with government incentives where the build is uneconomic.”

It pinpoints the cost of the project as a major drawcard, saying it would only cost $3 billion, with much of that given by private investment. “We believe further research should be undertaken on such a scale.”

As a final warning, it says investment by the taxpayer for any NBN infrastructure “must be subject to serious investigation and independent cost estimations, cost-benefit analysis, genuine industry and public consultation as well as a review of its impact on the Australian competitive telecommunications landscape”.