Former Telstra executive Phil Burgess slams NBN
http://www.adelaidenow.com.au/business/former-telstra-executive-phil-burgess-slams-nbn/story-e6frede3-1226077276035
Why does it have to be government owned, and why does it have to be a monolopy ?Phil and his attitude is some of the best evidence of why we need a wholesale-only, open access government owned infrastructure monopoly as a base for communications services.
Why does it have to be government owned, and why does it have to be a monolopy ?
Yep, if you want objective, accurate reporting, look no further than Piers Akerman.What a despicable fat old slimebag he is.
Personality aside, the irony of his complaint about Quigley allegedly failing to reveal the whole truth is absolutely breathtaking, considering all the pertinent facts he decided to omit from his blog, and the inaccuracies within.
Nobody is claiming that Quigley or Beaufret knew of, approved or in any way were involved in the bribery. While 3 of the countries involved were at some stages under the Americas region Quigley administered, the sham consultants worldwide were the product of Alcatel Standard based in Switzerland, which reported through Europe (outside Quigley's region).
NBN Co chief executive Michael Quigley has made a number of major contradictions or errors over his knowledge of corrupt activities engaged in by his previous employer, Alcatel.
While Quigley and the NBN chief financial officer Jean-Pascal Beaufret, who also came from Alcatel (now Alacatel-Lucent) have never been accused of direct participation or involvement in the Alcatel illegalities, almost every statement Quigley has made about Acatel’s involvement in corruption has turned out to be exaggerated or incorrect when compared with official court records and proceedings.
The closest anyone has come to such a claim is Pier's story, which I would suggest is on the knife edge of being libellous. I would hope there are some very highly paid lawyers looking it over right now.
The SEC didn't even seek to question either of them during their investigation into Alcatel, and they are not named in any SEC documents. There is absolutely no evidence implicating them in anything. Despite extensive digging no-one has been able to find any, no doubt to the chagrin of Turnbull et al. The whole incident is a coalition attempt to play the man instead of the ball in their attempt to derail the project. Piers (as the self-appointed mouthpiece of everything right-wing) is only too happy to aid the smear.
I think the AFR's David Crowe sums the whole thing up quite well:
http://www.afr.com/p/business/technology/hint_of_mccarthyism_in_coalition_gpkarfG0Zr1dhRO0qzes6J
It's a pity, because from all reports Mike Quigley is a very good man, who rose from being a cadet at STC in Sydney to being 2IC at one of the World's largest multinational communication companies. He fought and beat cancer, twice, and donated his entire $2M first year's salary to Australian cancer researchers. But us Australians love nothing better than cutting those tall poppies down to size, facts and consequences be damned.
I had thought it wasn't possible, but reading Pier's pathetic smear yesterday lowered my opinion of him even further.
Phil and his attitude is some of the best evidence of why we need a wholesale-only, open access government owned infrastructure monopoly as a base for communications services. Because when a private, vertically-integrated monopoly is calling the shots, you get the farce that is current Australian telecommunications.
The HFC rollout of the 90s is a good example.
Because communication cables are a natural monopoly. It is a tremendous waste of money, time and resources building parallel infrastructure. You wouldn't want multiple, competing sets of power lines running down every street and into every house, so why would you want multiple communication lines?
Build the infrastructure, regulate it as open-access, then let the private sector compete in the retail market.
Yep .... discredit the messenger by insults first.
SEE ........ not saying HE did anything wrong whilst the CEO of the company. CORRECTLY stating that he exaggerated or incorrectly stated compared to the official court records and proceedings. Got the bull by the tail on this one.:
OH really?? And what inaccuracies pray tell are they? Please enlighten us.
Where there is smoke there is fire. The BIG BOSS of the company did not even know what was going on underneath him and now is in charge of 26 billion *SCOFF* of taxpayers money to build a shiny blue cable that no one wants or undersatnds. GREAT !!
Are we not allowed to question such actions? I mean the fraud and bribery in the company was on a wholesale proportion and Mr Quigley did not know about it ?? What was he doing then?? Asleep at the wheel?
You had an opinion of him in the first place? A "despicable fat old slimebag" in your own words.
If the shoe fits...
He was never CEO of Alcatel.
The implication from Piers is quite clear.
While Quigley and the NBN chief financial officer Jean-Pascal Beaufret, who also came from Alcatel (now Alacatel-Lucent) have never been accused of direct participation or involvement in the Alcatel illegalities, almost every statement Quigley has made about Acatel’s involvement in corruption has turned out to be exaggerated or incorrect when compared with official court records and proceedings.
That's exactly the point. There is no smoke.
Again, he wasn't the BIG BOSS. He was the region boss of the Americas for 20 months, then boss of North America only, and then the COO for 18 months. The bribery began before he took over the region, and continued after he left. While occurring within a region he had overall supervision of, the enabling schemes (the sham consultants) were administered from another subsidiary (Alcatel Standard), operating from another region (Switzerland-Europe).
Mr Quigley, who left Alcatel in August 2007 and joined the NBN Co as chief executive in July 2009, initially said the corruption was confined to “two rogue employees” – a statement backed by Communications Minister Stephen Conroy. And before being presented with company records showing he had been Alcatel’s Americas president – responsible for North, South and Central America – he maintained he was not responsible for Costa Rica.
“I should not have made the mistake about my responsibility for Costa Rica at the relevant time,” Mr Quigley said yesterday.
The only major issue Quigley has corrected was whether Costa Rica was under his overall responsibility during the 20 months he was prez of Americas. Turns out Costa Rica has gone in and out of the americas region for Alcatel, because of the language barrier. During some periods, it was administered from Spain and Quigley was told that his was one of those periods. He subsequently corrected himself. This didn't contradict any court documents, because neither he or his position were ever mentioned in any court documents.
(I'm going off memory here, so could be out slightly with numbers. I'm sure you can google and find out for yourself) The alcatel americas region had a turnover of about US$15bn during the period where US$8m was paid in bribes in countries where a different language was spoken to the administration of that area (ie the US). You really think that would stand out?
The SEC has prosecuted 44 other companies for similar activities in the last 2 years, including General Electric, Siemens, Daimler, Shell, Fiat, Volvo and BAE Systems. Fines are now in the billions of dollars.
Hell, Tony Abbott can't even stop subordinates in his own country from paying bribes or taking kickbacks. I expect that you'll be demanding his resignation, as obviously he must be asleep at the wheel and incapable of running a $1.2Trillion dollar economy?
No-one wants the NBN?
http://www.essentialmedia.com.au/opinion-of-nbn-2/
The bottom line here is that there is not a shred of evidence that Quigley knew about any of this. He was never sought, named, charged or even questioned about it. I have no issue with it being investigated, the SEC did so for 5 years. But the investigations are complete and the only people trying to link Quigley to it are the coalition and their media attack dogs.
It's quite reprehensible and this will be the last time I discuss it here.
It is a tremendous waste of money, time and resources building parallel infrastructure. You wouldn't want multiple, competing sets of power lines running down every street and into every house, so why would you want multiple communication lines?
" As part of Telstra's deal with the government and the government's desire to avoid competition, Telstra has agreed to shut off its copper network and stop offering broadband over its existing pay TV cable.
This cable runs past 2.5 million homes in metropolitan areas and is capable of 100Mbps speeds for a fraction of the cost of fibre. Optus is in discussions to do the same. The government's NBN Co doesn't want competition. "
http://www.theaustralian.com.au/new...g-with-fibre-too/story-e6frg6z6-1225964988917
Oh deary, deary me ....... the wheels have fallen off.
NBNMyths, I just have to jump in again, point 3, is what really gets up my nose. The average priceing model that the ACCC wouldn't allow Telstra to adopt, is now acceptable for N.B.N.
Also it's a bit rich to say no infrastructure has been built for a decade, when it was expected to be payed for by Telstra shareholders.
Telstra and it's infrastructure was sold by the goverment for (someone correct me) $50Billion dollars. To mum and dad Telstra shareholders, then it was systematicaly destroyed by the goverment ACCC attack dog to allow competitors to cherry pick high return areas.
So in summary sell a pig for $50B to the taxpayers who owned it, legislate to cripple it, then charge the taxpayers another $50B to replace it. Then tell them you will sell it back to them again in 5 years. Priceless just Priceless.
Actually if the same was done by the private sector it would be seen as a scam and ASIC would be investigating.
Is this supposed to be some great revelation? In case you haven't been paying attention, it was announced over 12 months ago that Telstra would begin migrating their customers and shut down their copper and HFC.
*GOSH* you are so blind it is unbelievable.
You wrote this "It is a tremendous waste of money, time and resources building parallel infrastructure."
And I pointed out this "As part of Telstra's deal with the government and the government's desire to avoid competition, Telstra has agreed to shut off its copper network and stop offering broadband over its existing pay TV cable."
So on one hand you are saying it is a waste of money to install parallel infrastructure and yet we are paying Telstra to stop offering broadband on a perfectly good HFC.
Yeppers ...... we all need this shiny blue cable.
Better yet ....... just ignore the facts and claim high indignation.
People talk about letting infrastructure competition work. Maybe you should learn a lesson from history.
We have empirical evidence of what happened in the late nineties where Optus rolled out a pay TV network down streets in suburban Sydney, Melbourne and Brisbane.
Telstra went down the same streets, carpet-bombed the business case and effectively Optus and Telstra wrote off over $1 billion through that period. We were losing $300 million a year through that period at Optus.
So for those that are very brave to ask - and this is always interesting when people tell other people how to spend their money - for those who are very brave to say we should let infrastructure competition continue, [I say] throw money into it.
We've certainly seen empirical evidence that that will not work and that's one of the main reasons we support the NBN.
EMPLOYER groups are outraged by a legal decision that makes employers responsible for injuries suffered by staff working from home.
Telstra will be made to pay legal and medical costs in a multimillion-dollar ruling by the Administrative Appeals Tribunal.
Telstra worker Dale Hargreaves, 42, said she slipped down the stairs twice in two months while working on marketing campaigns from her Brisbane townhouse.
NBN Retail Pricing Pressure Points
Thursday, July 21st, 2011 by Simon Hackett
The National Broadband Network (NBN) is the subject of promises from the government that consumers will pay comparable prices to current day ADSL2+ and phone service bundles in order to access entry level NBN based services, and that NBN based retail pricing will be nationally uniform.
Unfortunately, a number of pressure points in the wholesale pricing model exist which will make these promises (from the government) untenable in practice, unless serious issues with the underlying pricing model are addressed by NBNCo and the ACCC.
This post elaborates on some of the relevant issues that serve to place upward pressure on NBN based retail pricing in general and even more pressure upon retail pricing in regional areas in particular.
Executive Summary
A focus on the end-state (ten years from now) in terms of wholesale pricing without apparent consideration of how the industry needs to get ‘there’ from here’ means that NBNCo have, in my view, not yet properly addressed the full lifetime impact of the costs of participation by RSPs across the build period.
In particular the NBNCo “CVC” cost construct (when sufficient CVC capacity is installed for adequate customer service quality) will generate huge monthly ‘overhead’ costs for RSPs (ahead of sufficient customers being connected to defray those costs), for several years, cumulatively and separately in each point of interconnect.
A simple change to the pricing model (first 200 megabits of CVC included at no added cost) would solve this almost entirely.
Solving this issue is essential to ensuring an adequate participation rate by RSPs in the NBN, and to ensuring consumer pricing is not driven far higher than it would otherwise be driven during the first several years of the NBN’s build phase.
Second, the ACCC’s ’121 POI’ decision is fundamentally at odds with stated government policy in terms of consumer retail pricing outcomes, it will drive the continued market dominance of Telstra (as the only party not exposed to the resulting additional costs), and it will cause all consumers to pay more for their Internet access as a result. Hence this decision is clearly not in the Long Term Interests of End Users.
Internode is offering all its NBN-delivered services as "bundled" plans that include telephone and Internet access services.
Internode's initial residential NBN plan pricing will start at $59.95 a month, with a port speed of 12 megabits per second (Mb/s) downstream and 1 Mb/s upstream and a 30 gigabyte (GB) data quota. A 100/40 Mb/s service with a 1000 GB data quota will cost $189.95. All Internode’s NBN plans include $10 worth of monthly call credits for the bundled NodePhone Voice over IP (VoIP) telephony service.
It will also become possible to obtain the bundled phone service as a conventional analogue fixed line voice service instead of using VoIP, once NBNCo releases this capability later in 2011.
Internode’s NBN pricing aligns its entry-level NBN service with its 30GB data quota Easy Naked ADSL2+ voice and data bundle, which costs from $59.95 a month. The following table summarises proposed prices for Internode's residential NBN services.
http://www.internode.on.net/news/2011/07/236.php
Sorry for the delay in posting this, l'm getting slack.
The government has always said that the NBN will be competitively priced....
Internode is the first ISP off the block, lets have a look at what they have to offer;
Pricing
That's expensive!
From what I hear Internode are not that competitive in the market and certainly not a low cost operator.
I think its an opening bid at best, for me on that pricing I would win hugely, inner city would likely lose.
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