Paul Budde. Building Australia’s white elephant – cheap buy for white knight Telstra.

The following piece by Paul Budde foreshadows a ‘white knight’ role for Telstra when NBN fails.  He says:

We are now getting a second-rate network and the first signs from customers, as we heard in a recent Senate Hearing, are not good. This is in line with our assessment. An MtM network, by its very nature a mesh network, will not be able to deliver consistently good quality services to all customers. Telcos and ISPs are not happy with the second-rate system and want to bypass the NBN with their own fibre and mobile services. And there has been dead silence from the government on the potential economic role the NBN has in relation to innovation, healthcare, education and so on. Belatedly the NBN company is now arguing that the NBN debate should move from politics and focus on what we, as a nation, want from it. …

The white elephant scenario that the government is now pursuing will see the NBN fail, as it is not future-proof and consumers and businesses will want a better network. In other words, large parts of the $50 billion+ investment in the NBN will not be valued by the market at the time of sale – that is if the government relentlessly and single-mindedly pursues its MtM NBN.

This piece was first published in budde.com.au on 19 February 2016. For the complete article, see link below:

http://www.budde.com.au/News/#Building-Australia’s-white-elephant-cheap-buy-for-white-knight-Telstra

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Paul Budde specialises in the strategic planning of government and business innovation and transformation around the digital, sharing and interconnected economy.

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