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Australia's National Broadband Network Downgraded

RobHart writes "Following election promises to create a 'better, cheaper, sooner' National Broadband Network (NBN), the new Australian government has reneged, announcing instead the NBN will cost $12bn more and take four years longer. The critical change is that the new network is based on Telstra's aging and unreliable copper network rather than fiber to the home, as has already been delivered during the NBN roll out to date."

17 of 122 comments (clear)

  1. please slashdot fix this story and help us nerds by Anonymous Coward · · Score: 2, Funny

    So the underlined text is completely the opposite. it will take less time and cost 20 billion less.

    However id prefer it took longer, cost more but was FIBER TO THE HOME and not copper dsl

    SLAHSHDOT YOU ARE HURTING US NERDS IN AUS COME ON PLEASE COMPLAIN PROPERLY

  2. Murdoch got what he wanted... by Pav · · Score: 4, Insightful

    After abusing his control of Australian media Murdoch got what he wanted - no NBN to challenge his cable interests.

    1. Re:Murdoch got what he wanted... by dbIII · · Score: 2

      90% of that seems to have been Telstra dragging their feet and not giving access. Funny about that since they are the biggest winner if the NBN is halted. Maybe you should take it up with the Liberal Party folks (and their wives like Janet A) who are on the Telstra board. They win too.

  3. In between. by Anonymous Coward · · Score: 2, Informative

    The answer lies in between. Politicians promise large projects and underestimate their cost. They hire the lowest bidder, and the talent running the project is not cream of the crop because that would cost more. The government also has very little competition for large scale projects, so if the project isn't going well, we can't exactly bring in someone else to take it over, like an individual would if a plumber they hired was incompetent.

    Public-Private Partnerships seem to work address a lot of these issues. Expect to see more of them in the future.

    1. Re:In between. by Pav · · Score: 5, Insightful

      I know someone who works for an Australian company. They put in a tender for part of the NBN project but IBM won the contract at almost twice the price. IBM then subcontracted the work back to the Australian company. It's strange - Australians seem to underestimate the abilities of their own technical community, and as slaves to community perception Australian governments are particularly bad for this bias. It seems to be part of the national psyche that we're only about agriculture and mining, and local tech comes a poor second to overseas offerings. It's no wonder we're judged an easy mark and regularly overcharged for software.

    2. Re:In between. by Anonymous Coward · · Score: 3, Interesting

      I've seen better. A company put in a bid for some subcontracting work, only to realise it was a job that they already subcontracted out to a subcontractor. Australian Government purchasing is so inefficient, subcontracting loops can even form.

    3. Re:In between. by TapeCutter · · Score: 2

      Long term government projects are more like two plumbers attempting to take the credit for unblocking the toilet and blaming each other for the mess on the floor. The new Oz government is just more vindictive towards it's political enemies than usual.

      A brief history of the NBN:
      Right wing make hay while the sun shines and stash away a $40b "nation building" fund. ($40B is a line item in the US budget but it's lot of money in a country of 20 million)
      Left wing gov come up with NBN plan..
      Academics and engineers nod approvingly.
      Right wing opposition leader (Malcom) cautiously endorses the idea
      Left wing gov cracks open the piggy bank and hands out contracts.
      Right wing leader is deposed because he was negotiating in good faith with the left on carbon pricing, he is replaced by new leader (Tony).
      Tony makes sure Malcom is not going to be a future problem by handing him the impossible job of attacking the plan he cautiously endorsed.
      Malcom goes on TV and attempts not to look foolish while trying to convince the nation that FTTN is better that FTTH.
      Tony wins election, merges the Science and Industry ministry and drops the position of Minister for Science. Malcom sacks NBN board and replaces it with Tony's business cronies.
      Contractors sit around burning dollars waiting for someone to tell them WTF is going on.
      Some time in the not too distant future the money is gone and we have half an NBN for twice the price. Democratic governments take market competition to the extreme and the inevitable result is infighting and waste. If anyone has a better idea I'm all ears, but please don't say "self-regulation", corporations have the same basic political machinations as governments, when left to their own devices they suffer the same distrust, infighting and waste, it's just easier to spot in democratic governments.

      --
      And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
  4. One Step Forward ... by Anonymous Coward · · Score: 3, Insightful

    One step forward and three steps back.

    Continued investment in poor and aging infrastructure is not smart. Doing it at a greater expense is criminal. This should come at the expense of the jobs of the hacks who made these decisions.

  5. Re:Not sure which is news... by Aquitaine · · Score: 2, Interesting

    While the parent here is certainly right about government projects, it's hard not to imagine that the Australian government didn't know this was coming from day one.

    Ten minutes' study of Australia's geography and population can tell you that this would have been one of the lowest bang-for-the-buck national projects imaginable. Australia is the opposite of South Korea in this respect - it's a massive place with low population density. If running fiber all over it were easy, it would've been done by now.

    It is telling that they didn't just say 'sorry, this will take a little longer' but rather 'this will take longer, cost more, and we're not even going to try to deliver what we promised.'

    I am a free-market guy in general, but this is really tough. The free market can only 'sort it out' if the cost/benefit works out. I don't think it's even close here. The free market solution for a problem like Australia's is not 'let a bunch of companies bid on a hugely expensive monopoly project' but reward them with an innovative solution - come up with something that doesn't require them to dig up a whole continent to plug in towns of 1,000 people.

  6. The plutocrats prevailed by benjfowler · · Score: 4, Insightful

    The plutocrats prevailed.

    Telstra snatched victory from the jaws of defeat, and have not only managed to force everyone to pay (again) for their decaying copper network that they themselves ran into the ground, they've now weedled their white-shoe conservative mates in Canberra into letting them set up a tollroad for all Australians far into the future.

    And Murdoch and his evil empire gets to maintain his complete and utter dominance of Australian TV, newspapers and cable.

    Win-win-win all round for all the white shoe tory criminals.

    1. Re:The plutocrats prevailed by grunter · · Score: 2

      This.

      Murdoch has been seriously wounded in the UK, and cannot now command political power in the way that he previously enjoyed.

      So now, despite not actually being Australian any more (he gave up his citizenship to become a US citizen), Australia is pretty much the only place left where he wields significant power, due to News Corp's ownership of the majority of the commercial media in this small market. So now Murdoch has crowned his victory (deposing a decent government whose main flaw was a megalomanical ex-leader after a 3 year smear campaign) by protecting News Corp's cable TV interests as well.

      It was always too good to be true - a government program that would really empower people - in an age of neo-liberal so-called free market economics (what we really have is subsidies for corporates and plutocrats - not a "free market"). Once again, the wowsers have won, and Australia can go on with being the backwater dirt factory it has been told it should be.

      A pox on Murdoch and the Coalition.

      --
      In Soviet Russia, all our base are belong to YOU!
  7. Again? by hawguy · · Score: 2

    it seems like it was just days ago when they said they couldn't run fiber to the home and were going to use copper to the home:

    http://tech.slashdot.org/story/13/12/05/2025245/australias-44b-broadband-network-may-settle-for-fiber-near-the-home

    What are they downgrading to now? A piece of string to the house?

  8. Re:Not sure which is news... by TubeSteak · · Score: 5, Informative

    The whole point of the NBN is that it's a government chartered corporation that leases access to everyone.

    It was never about the "free-market".
    Instead, the idea was to create a competitive market, on a government built foundation instead of the existing private monopoly/oligopoly.

    Infrastructure investments are almost always worth it, even if the price explodes.

    --
    [Fuck Beta]
    o0t!
  9. Re:Not sure which is news... by Smauler · · Score: 3, Informative

    Australia is the opposite of South Korea in this respect - it's a massive place with low population density.

    Australia's a bit deceptive in this... there are massive areas where no one lives, which would not need any connections. I guess it's a little like Canada, in a way. If you just take the land area, and divide by the population, you get big numbers. However, those numbers aren't all that useful in figuring out how costly it would be to get broadband to a certain percentage of the population, since no one lives in 90% of the area.

    Also, South Korea is only a little bit smaller than England, with a little bit smaller population. England's broadband is not close to South Korea, despite being a first world western nation.

  10. Re:Not sure which is news... by dbIII · · Score: 2
    It's a very uneven distribution - most people live in a few cities and some narrow coridoors. Satellite was for the rest.

    If running fiber all over it were easy, it would've been done by now.

    Our telephone monopoly has been doing very little other than sitting on what they have since 1996. There is no "free market" here. There is only the monopoly that wins by doing nothing apart from stopping any other competition cropping up or a government doing an end run around that monopoly.

  11. Re: Not sure which is news... by oztiks · · Score: 2

    Yes I need to grow up because I feel the need to not watch everything this nation once produced get offshored because the Unions STEAL. Yes STEAL. Whilst using the 'poor downtrodden worker' excuse to do so. We cannot muscle companies around just because we can. And in this case their is no need to look out for the little guy. Scrapping minimum wage is a bullshit statement towards me because your pulling my argument to an extreme rightist view just because you think you're cool for doing it.

    Listen, I'm not wagering the Libs are any better. But I certainly wont overlook the atrocity we called the ALP and think for ANNNY second that Julia the massiah Gillard was any better. She's under investigation by the Victorian Police for these sorts of reasons. Union slush funds she used to renovate her house. This 'was' our leader?

    My guess is your a younger person than me. Perhaps just out of uni and was fed all this bullshit while serving time at our nation's 'Social Sausage Machine'. As the saying goes. If you're under 30 and not vote Labor you have no heart. If youre over 30 and vote Labor. Then you're a fucking idiot.

  12. Re: Not sure which is news... by dbIII · · Score: 2

    I give it two years at the most before you understand that I am not delusional, unless you choose to live under a rock.
    Either way the NBN is dead and all that's left is for Ziggy and his mates to suck the corpse dry and blame it on Labor. Expect strange financial adventures in China that fail for no clear reason but result in a lot of money vanishing to nowhere that people can follow. That's one common way to launder public money when something goes semi-private. Telstra did it, state owned power utilities did it, and since Ziggy has form he's likely to do it again to what's left of the NBN. Expect the bones to be given to Telstra for either nothing or a fire sale price.

    Australian politics is easy to understand. Labor go into debt to build infrastructure and the Libs have unneeded fire sales of the infrastructure before it has a chance to make a return then blame that on Labor. After the Libs sit on their arses doing nothing useful for a few years and the blame wears off enough people get pissed off to put Labor back in and the cycle continues. The Nats are mostly irrelevant, even in Queensland. Kevin Rudd showed that the Unions were mostly irrelevant, even in Labor, so you need to look for something else to blame.
    Currently we are in the blame and selloff part of the cycle which is why we are seeing so much money getting wasted on pointless inquiries as if the Libs don't understand that they have won and there's no reason to kick a dead horse. The insulation scheme were dodgy bastards broke the rules and sent untrained kids to die was how many years ago - and what's the point of an inquiry to say to Labor "you should have stopped the dodgy bastards from breaking the rules"? Meanwhile the Libs want less tight workplace regulations while trying to insist Labor should have had draconian controls on the small businesses operating on the insulation scheme. It's all about throwing mud around since they don't really want such a nanny state.