WiMax operator Vividwireless has confirmed its plans to be a key wholesale customer of the upcoming national broadband network (NBN).
At the CommsDay Summit in Sydney, Vividwireless re-affirmed that its wireless technology is complementary to the NBN and that it would become a key wholesale customer of the NBN, offering retail services to customers on the NBN.
The Australian government has stated that it will cost around USD40.4 billion in equity and debt to fund the National Broadband Network (NBN), with the state putting up some US$27.38 billion of that.
The new infrastructure, the operation and construction of which will be overseen by the public-private NBN Co, was one of the ruling Labor party’s major election promises, and Prime Minister Julia Gillard has called it the telecommunications development of their century.
The leader has claimed that the NBN could increase economic growth in Australia by around 1.3%, although no timeframe for such increases have been detailed. NBN Co. CEO Mike Quigley has claimed that his company would become a top-tier Australian debt issuer, with the bulk of the non-government funding expected to come from overseas investors.
Annual revenues from the new network are forecast to be US$5.77 billion in 2021, rising to US$7.56 billion by 2025, with the state aiming to earn an average of US$1.89 billion per year over the six years from 2015 to 2021.
Meanwhile, the government has also noted that the US$10.95 billion deal with the country’s fixed line incumbent Telstra, under which the latter would allow the NBN to utilize its existing fixed line infrastructure, would be finalized by next month.
While this is slightly later than Telstra had hoped for it aimed to complete an agreement before the end of 2010 it is still expected that this would allow enough time for the telco’s shareholders to approve the proposals by the middle of 2011.
The Telecom Regulatory Authority of India (TRAI) has issued recommendations for a National Broadband Plan.
The outline comes after the 2004 national broadband policy failed to markedly develop the Indian broadband market.
Currently, there are 10 million fixed broadband subscribers in India, a penetration of less than 1%. Under the 2004 plan, there were expected to be 20 million fixed broadband subscribers by 2010.
TRAI has suggested setting up a National Optical Fiber Authority (NOFA), a central agency, and a State Optical Fiber Authority (SOFA). These organizations will drive the rollout of the proposed $13.34 billion NBN, which will cover 63 large cities, 4,315 cities/towns, and contain more than 25 million route kilometers of fiber.
Through NBN, TRAI has targeted 75 million broadband connections by 2012, and 160 million connections with download speeds of 10Mbps in 63 large cities, 4Mbps in 352 cities, and 2Mbps in the remaining towns/villages by 2014.
TRAI expects that the NBN will yield annual revenues of $5.8 billion once it is fully operational. Although TRAI’s plan will bring renewed relevance to wired networks in the country, we believe that mobile broadband will continue to be the driver for increased broadband penetration in India.
Telstra Ltd has valued its proposed deal with NBN Co at $16 billion.
According to Telstra, the $11 billion figure reflects the post-tax cost of the deal, which would see the telco paid $9 billion to decommission its copper network and customers can migrate to the national broadband network and another $2 billion in benefits from policy reforms.
According to Chief executive David Thodey, it would be tremendous for talks with the NBN Co to wrap up by Christmas, enabling shareholders to vote on the proposal by mid-2011.
As per the NBN Co’s annual report should these agreements be finalized, NBN Co expects they would be put to Telstra shareholders in the first half of the 2011 calendar year.Telstra chairman Catherine Livingstone has told fund managers concerned about the telco’s performance that the company was doing all it could to push the deal towards finalization, but that some aspect of the agreement remained out of its hands.
According to sources, she pointed to the patience of Thodey in negotiating the original deal and said that the market would have to show similar patience with the company seeing it through to a binding agreement.
According to reports, the comments came amid shareholder concern that Telstra might have to cut its 28 cent-per-share dividend, and worries around the telco’s shareholder plan.
www.WirelessFederation.com/news: With Optus racing ahead by 10.9 per cent in the last quarter, Telstra and Vodafone emerge as the apparent losers in a competitive market that has grown by some 8 per cent. Telstra has been simply left behind in the market with Optus becoming faster with new products and plans and using its gains to boost network performance which in turn paves way for more market share gains. The mobile earnings reported an increase of 5% and the revenues were boosted by 12.9%.
Optus last year’s earnings from its mobile division increased from 59 per cent to 63 percent. Exploitation of new devices like the iPhone is a major reason behind the profit of Optus as in the process it not only got better customers but higher-quality customers. It is also offering bundled offers on longer contracts in an attempt to lock in customers.
The tough competition posed by Optus is the reason why Telstra is cutting prices and ditching its past policy to protect its profit margin at all costs. It is also the reason why Optus is so keen to get the NBN project under way in order to increase the pressure on Telstra.
National Broadband Network Implementation Study has been released by the Australian government which outlines the plans to finance and build the new network. 84 recommendations on the technology, financing, ownership, policy framework and market structure of the NBN has been offered by the report to the government. Australian government and Telstra have been in talk with each other for several months on selling part of its fixed network assets to the NBN, but the two have been unable to reach an agreement on the price.
With its foot on Telstra’s throat, Optus now has an ideal time to float but at the same time the official line on that issue has not changed: no present plans. While OPTUS boss Paul O’Sullivan has taken a lead now, he also feels that Telstra will fight back to revive its diminishing market share with more and more lucrative offers.
www.WirelessFederation.com/news: National Broadband Network Implementation Study has been released by the Australian government which outlines the plans to finance and build the new network. 84 recommendations on the technology, financing, ownership, policy framework and market structure of the NBN has been offered by the report to the government.
According to Stephen Conroy, minister for communications, the report shows the government does not need the participation of incumbent Telstra in order to roll out the NBN while infrastructure-sharing and commercial cooperation with other operators would benefit the project, the NBN will be financially viable even without the participation of Telstra.
Australian government and Telstra have been in talk with each other for several months on selling part of its fixed network assets to the NBN, but the two have been unable to reach an agreement on the price.
www.WirelessFederation.com/news: All the rumors regarding any kind of agreement between Australian government and Telstra over the terms of access to its fixed line network infrastructure has been declared as unfounded by the telecom operator. The telco has also made it clear that negotiations with the state over use of the network for the National Broadband Network (NBN) project were ongoing.
The Department of Broadband, Communications & the Digital Economy (DBCDE) has reiterated the dismissal without making any comment on whether an outcome was close or not. Earlier it was reported that the pricing issue has stalled the negotiations between Telstra and the state over the former’s role in the NBN project.
Transfer of the incumbent’s fixed line customers to its new fibre network has been aimed by NBN and it also wants access to infrastructure including underground pipes, ducts and space at telephone exchanges.
www.WirelessFederation.com/news: The planned legislation of the Australian government to split Telstra into retail and wholesale businesses has received reservations from an Australian senator. The negotiations between the company and NBN Co are still going over the governments planned A$43 billion national broadband network.
According to Family First Senator Steve Fielding, The most prudent approach for Australia is to allow the negotiations between Telstra and NBN Co. to continue in good faith and to see those conclude before we look at any legislation and putting any time frame on that is not prudent at this stage.
New laws is seeked to be passed by Prime Minister Kevin Rudd, voluntarily splitting Telstra into retail and wholesale arms or face tough regulations that could force it to sell its half-stake in pay television group Foxtel and be barred from buying new mobile spectrum.
www.WirelessFederation.com/news: A “significant gap” has been described by Telstra in the estimation of the worth of its assets by NBN CO and the company itself. An update on the negotiations with the government has been provided by Telstra which talks about the sale of its fixed assets for the planned National Broadband Network.
Besides, a range of commercial matters are still required to be agreed upon. Ways to bridge the gap with the government highlighting the national interest benefits of the NBN and reform to the telecommunications sector are also being discussed by the two parties.
On reaching an agreement, an approval will be seeked by Telstra from its shareholders.
