Word: telstra
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Dates: during 2000-2009
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...Labor government's decision to run fiber to the home (FTTH) also has a political aim: to break the grip of the national carrier, Telstra, on the country's telecommunications sector. The decade-long process of privatizing Telstra ended in 2006, but the company has continued to enjoy the legacy of almost a century as a state monopoly, reaping 90% of the profits from country's $28 billion communications industry...
...Telstra's power stems from its stranglehold on the "last mile" of copper wiring to Australian homes, over which most telephone and Internet services are delivered and which rivals must pay to access. By building its own FTTH network, the government will bypass the copper and kick off a new era of competition where Telstra is an equal player on an open-access network. "This will totally change the telco industry and Telstra," says Budde. "Think if the road system was owned by one company that said 'you have to drive these cars.' Without open access to the roads there...
...dwarfs the $7.2 billion earmarked in the U.S. stimulus package for broadband network construction. Budde says the administration of U.S. President Barack Obama is taking an "enormous interest" in the NBN initiative because it may hold lessons for America, where U.S. phone companies enjoy competitive advantages similar to Telstra's. "The warning signs are there for AT&T and Verizon," says Budde. "Things won't change overnight, but open networks are coming to America. If the stimulus package works I'm 100% sure they're not going to stop there...
...been greeted with near unanimous praise by Australia's information-technology industry, but it is not without critics. The opposition Liberal party has slammed the high cost to taxpayers and uncertainty over how the network will be built and financed. But Telstra is a supporter. Two weeks after the NBN announcement, Telstra managing director of communications David Quilty hailed it as "bold and ambitious...
...Telstra is expected to be a major investor in the NBN, which the government will build in partnership with the private sector while retaining a majority share. Like any successful telco, Telstra recognizes a good business opportunity - and when the rules of the game have fundamentally changed...