Rudd-Con DIY broadband plan

The Commonwealth Government has announced what is undeniably a bold and visionary project to replace our nation’s aging telecommunications system with a digitally robust optic fibre network. It is a scheme that is being touted as Australia’s largest ever infrastructure project, requiring major investment by both government and private enterprise to the tune of around $43 billion.

Let us not delude ourselves with the panacea of optical-fibre optimism just yet. While the broadband plan is a long-awaited and well-debated project many, including myself, will attest that despite it being a much-needed booster for the economy, the mere 25,000 jobs it will provide over eight years is of little consequence to the larger unemployment rates expected from the downturn.

Significantly, at the core of this plan are three fundamental truths that are being deliberately overlooked as well as one obscure potential outcome that conspires to further threaten privacy and civil liberties in Australia as well as our economic and national security.

Firstly we must recognise that Australia is becoming more reliant on high-speed telecommunications for government, business and households alike to transact, communicate, entertain and interact locally and globally. The speed with which we are expanding our desire for information technology and communications access will soon surpass our infrastructure’s capacity and capability to deliver.

There is no doubt that something needs to be done, and full credit to the current government for acknowledging what the previous one dusted under the carpet. However, a large proportion of critics have been citing the Government’s solution as being redundant even before the first cable is laid. Comments like “too little, too late” or “too old, too soon” are making headlines. It is hard to disagree.

Just like its copper predecessor, even optic fibre has a finite capability and lifespan. Only 10 years ago a common dial-up connection offered speeds of 14kbps to access the information super-highway, while today we expect 56kbps as a minimum and DSL speeds of between 512kbps and 1.5Mbps are seen as the standard for the contemporary mega-media highway. It is, therefore, easy to predict that by the time the final cable is connected in 9 years time, the highly acclaimed 100Mbps connections will be barely sufficient to appease our addiction to the terabyte-highway looming in our future.

Therein lays the second poorly calculated assumption; that it will only take 8 years to roll out high speed optic fibre into every household and office across this vast land and that it will come in on budget. The Snowy Mountains Scheme aside, the record of Australian governments to complete major infrastructure on time and on budget is almost non-existent.

One can only guess at the millions of kilometres of cable required for this initiative and the speed with which it must be laid and connected, let alone for a project of this size to be adequately funded through successive governments and a myriad of unknown economic and political hurdles.

I draw the analogy of a homeowner wishing to renovate. Unhappy with the proposals and quotes received from the experts, they instead choose the DIY method. We all know how easily that can end in tears, heartache, financial ruin and divorce. This leaves the house unfinished, sold at a bargain price to some entrepreneur who simply walks in, tidies up, puts on a coat of paint and resells for a major profit.

The proposed $43b budget is to be partly funded by a government cash injection of $4.7b with up to 49% owned by private enterprise. The issue of Government Bonds (aka debt) is anticipated to cover the shortfall of around $20 billion. At the end of the project, the taxpayers will encounter another telco sell-off that may put the T2 fiasco to shame. At this point, the new monopolistic National Broadband Network Corporation will want to start recouping its money back from subscribers and our reliance on this new corporate beast will render us unable to resist.

With currently 8 million internet subscribers (covering government, businesses and households) nationally, the cost of this project calculates to an average value of $5,375 per subscriber. Even over 20 years, that equals an extra $268 pa to your access fees. This figure doesn’t even consider the additional investment by private enterprise or any losses resulting from movement of revenue away from traditional telcos as subscribers ditch the pay-per-call model in favour of the free Voice over IP (VoIP) options associated with their new ISP packages. Telcos will simply become ISPs, leasing bandwidth and reselling it to consumers.

The final truth, as proven by historical precedence, is that the privatisation of critical infrastructure only serves to increase costs for consumers as the commercial enterprise has a natural desire to chase greater profits. One needs only to look at the existing PSTN to understand that the majority of us are paying higher monthly line rentals for old copper infrastructure that should have been well and truly paid off by our forefathers. And simply look towards the increased cost of banking along with the decreased level of service – we now pay the banks higher fees while we do more of our banking online or via ATMs. Public transport, bridges, highways, the list of privatisation pitfalls is endless.

It is my conclusion that the “Rudd-Con DIY broadband plan” will insufficiently meet the needs of a future technology hungry Australia; it will be unable to meet its objectives within the proposed timeframe and budget, resulting in a greater financial cost than what is being purported today; and finally that Australia’s entire media, information and entertainment distribution and access will be left at the hands of a privately-owned profit-driven telecommunications behemoth.

And therein lays the final conundrum of epic proportions; a nation whose every act of communication will be required to go through a government-sanctioned commercial monopoly. Every packet of data, each phone call, email, tweet, download, upload; all syphoned through a single privately owned optic fibre network.

At this point, Stephen Conroy and the ACMA won’t need to be fussed with ISPs implementing his ill-fated Internet filter; he may simply attach it to the responsibilities of the National Broadband Network Corporation along with allowing widespread eavesdropping for ASIO, ASIS, DSD, or the AFP. All this for the protection of our national security, of course.

Just think Echelon on a grander scale only much more efficient. While it may seem unlikely, it is not out of the realm of possibility. After all, who would have correctly predicted the government assaults on truth and our civil liberties in the last 8 years?