Opposition hits out at Australia broadband deal
Source: Agencies |
August 11, 2010, Wednesday
|
Print Edition
Print Edition
AUSTRALIA'S opposition will scrap a US$38 billion high-speed broadband network if it wins an August 21 election, but its cheaper alternative risks alienating voters suffering slow Internet in marginal rural seats.
The conservative opposition's plan, announced yesterday and already criticized by Internet industry groups, does not include the Labor government's A$11 billion (US$11.90 billion) deal with dominant phone company Telstra Corp to use its infrastructure.
Australia's slow and expensive Internet service has been criticized by business as a hindrance to economic development and is a sensitive issue amongst voters frustrated with Internet services.
The Liberal-National opposition proposed a broadband network, at a maximum cost of A$6.3 billion over seven years, which will cover 97 percent of homes through a mix of satellite, fibre-optic and wireless technology.
"Instead of creating a new inefficient government-run monopoly, the coalition's plan will stimulate a vibrant, private sector-based broadband market," said opposition communications spokesman Tony Smith, who will be communications minister if the conservative opposition wins power on August 21.
But with polls predicting a close result in the election, the conservative opposition plan may put at risk key rural and regional seats where voters suffer much slower Internet speeds than Australians in major cities.
Australia's average connection speed of 2.3 megabytes per second ranks 30th in the world.
Smith said his plan would guarantee Internet speeds of at least 12 megabytes per second by 2016, with some homes to have up to 100 megabytes per second.
Internet groups criticized the opposition's plan, saying it would not deliver widespread high-speed Internet and could cost a future economy A$30 billion a year in lost productivity. "I am very concerned that a coalition government will put us back 10 years in telecommunications terms," said Peter Coroneos, chief executive of the Internet Industry Association, which represents 150 firms involved in connectivity and content.
Coroneos said the government's fiber-optic delivery system was far more efficient than the coalition's plan which relies heavily on wireless technology.
The conservative opposition's plan, announced yesterday and already criticized by Internet industry groups, does not include the Labor government's A$11 billion (US$11.90 billion) deal with dominant phone company Telstra Corp to use its infrastructure.
Australia's slow and expensive Internet service has been criticized by business as a hindrance to economic development and is a sensitive issue amongst voters frustrated with Internet services.
The Liberal-National opposition proposed a broadband network, at a maximum cost of A$6.3 billion over seven years, which will cover 97 percent of homes through a mix of satellite, fibre-optic and wireless technology.
"Instead of creating a new inefficient government-run monopoly, the coalition's plan will stimulate a vibrant, private sector-based broadband market," said opposition communications spokesman Tony Smith, who will be communications minister if the conservative opposition wins power on August 21.
But with polls predicting a close result in the election, the conservative opposition plan may put at risk key rural and regional seats where voters suffer much slower Internet speeds than Australians in major cities.
Australia's average connection speed of 2.3 megabytes per second ranks 30th in the world.
Smith said his plan would guarantee Internet speeds of at least 12 megabytes per second by 2016, with some homes to have up to 100 megabytes per second.
Internet groups criticized the opposition's plan, saying it would not deliver widespread high-speed Internet and could cost a future economy A$30 billion a year in lost productivity. "I am very concerned that a coalition government will put us back 10 years in telecommunications terms," said Peter Coroneos, chief executive of the Internet Industry Association, which represents 150 firms involved in connectivity and content.
Coroneos said the government's fiber-optic delivery system was far more efficient than the coalition's plan which relies heavily on wireless technology.
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