CSIRO report on NBN slammed for Wikipedia references as Telstra shareholders urged to fight split plan

A report provided to the Government by the CSIRO used to justify the $43 billion investment in the National Broadband Network has been attacked for including references to Wikipedia and a lack of data regarding cost.

The attacks on the report, led by the Opposition, the Greens and independent senators, couldn’t come at a worse time for the Government, as it attempts to have legislation passed through the Senate forcing Telstra to split its wholesale and retail networks.

The vote was delayed again yesterday by Communications Minister Stephen Conroy, as Telstra shareholders express their anger with the Government’s plan.

The Australian Foundation Investment Company, which is Telstra’s second-largest shareholder, has told shareholders at a briefing in Sydney they should fight the Government’s plan.

Telstra and the Communications Department have been in negotiations for some time regarding the sale of Telstra’s networks. Using Telstra’s copper would significantly reduce the cost of the NBN overall.

”Telstra is entitled to get appropriate value for its assets, including its customer traffic. [And] shareholders are entitled to a fair outcome,” managing director Ross Barker said yesterday.

Meanwhile, the CSIRO report, which is separate from an implementation study conducted by KPMG and McKinsey for $25 million, has been attacked by several members of Parliament.

Greens senator and communications spokesman Scott Ludlam told the Australian Financial Review the report was not up to standard.

“It’s virtually a pamphlet and if that’s all they’ve done you’d have to be concerned,” he said.
Family First senator Steve Fielding also criticised the report, saying not enough information has been provided regarding the network’s viability. “$43 billion is a lot of money to spend on any project and I’d like to know as much detail as possible to make sure we are moving along the right lines,” he said. Fielding holds a critical vote in the Government’s battle for the telco reform legislation.

Independent senator Nick Xenophon also said that “at seven pages long, including references, that’s $6 billion a page. IT hardly seems like a rigorous exploration of all the options… this is further proof of the need to see the implementation study. We simply need more detail.”

A spokesperson for the minister has said the Government is relying on advice from a number of experts, including the CSIRO and other agencies.

“In formulating our enhanced National Broadband Network policy last year, the Government noted the advice in the Expert Panel report. The Government also sought advice from a range of other experts, including CSIRO, relevant Government agencies and the Department’s technical consultant (Gibson-Quai AAS), on the merits of fibre to the premise versus other technologies.”

“In response, the strong view was that FTTP is the superior broadband solution from a technical perspective, particularly in terms of speed, reliability and upgradeability. No one seriously questions that fibre to the premise is the most future proof technology.”

While the CSIRO study has reportedly found the current plan of laying cable to offices and homes was the best of six options considered by the Government, including wireless and satellite options, it has apparently made no comprehensive findings regarding advantages of fibre-to-the-node in terms of speed.

Additionally, the report has stayed clear of politics, reportedly staying that “neither cost nor regulatory issues have considered”.

Meanwhile, Conroy has announced the first retail service providers for the NBN in Tasmania, which is acting as a test-bed for the rollout of the network across the country. Primus, Internode and iiNet will all offer services on the network, with connectivity expected to be available by mid-year.

“NBN Tasmania remains on track to deliver the first high speed broadband services from July and the new Test Centre will assist in those preparations,” Conroy said in a statement. “It will provide the platform and capability for the service providers to test and refine innovative new services that will be offered to customers as part of the NBN.”

“Strong interest means more competition, more choice, better and more innovative services for Tasmanians… High speed broadband will deliver significant opportunities in Tasmania, and across Australia, and I’m pleased to be able to mark another milestone today.”