G9 unveil FTTN plan

The group of nine (G9) telco competitors to Telstra has release its proposed Fibre to the Node (FTTN) network model.

The model, detailed in ‘Competitive Model for a National Broadband Upgrade,’ seeks to offer a plan for the rollout of higher bandwidth Australia while avoiding the claimed anti-competitive problems associated with Telstra’s FTTN model.

The coalition comprises AAPT, Internode, iiNet, Macquarie Telecom, Optus, Powertel, Primus, Soul and TransACT.

At the heart of the new plan is the proposal to create an industry-owned, special purpose company, SpeedReach, to make key decisions about the network.

A process to secure more extensive capital investment in the FTTN network, an access pricing model to set prices for use of the network and a managed process for transition from unbundled local loop to FTTN, have also been proposed.

The benefits of this model would include wider network coverage than under Telstra, regulatory certainty to let the FTTN investment go ahead, the coalition claimed.

Telco analyst Paul Budde said the proposal was likely to meet with naysayers but the project, along with the Federal Government’s Connect Australia initiatives would see the turning of a corner in the telco sector.

“The G9 is coming up with some very sound plans and arguments and this is allowing all of us - government, regulator, industry, Telstra, consumers - to comment and discuss these plans,” he said.

Budde said there was sufficient evidence around the world that [feasable]economic models for the development of fiber to the home networks existed, however government vision was a vital element in the successful deployment of these networks.

The report can be viewed at: http://www.optus.com.au/dafiles/OCA/AboutOptus/MediaCentre/SharedStaticFiles/SharedDocuments/FTTN_10july_2006.pdf

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