Andrew Bolt has a post up this afternoon reporting that some well informed people have dropped a bomb on the $42B National Broadband punt by the ALP.
Could you ever call it a plan? Not long ago Andrew was speculating that the industry would keep quite and just feather their nests out of scheme , a la the School Hall Miracle and the Pink Bats Feeding Frenzy.

Why didn’t they come out with this before the election rather than now? Or were they so afraid of a Labor victory that they hid?
Samuel J
1 Sep 10 at 6:59 pm
It is off budget so it doesn’t matter about effectivness nor cost. Kattalaxska crappots
DavidJ
1 Sep 10 at 7:05 pm
DavidJ obviously thinks that the Government can be like Enron and keep everything off budget and it then doesn’t matter about effectiveness and cost.
Well this Catallaxy crackpot begs to differ. It matters a great deal.
Opportunity cost does not distinguish between on and off budget items.
Anyone who thinks otherwise should be kept well away from the public purse.
Samuel J
1 Sep 10 at 7:11 pm
Methinks DavidJ might have been extracting the urine, Samuel.
Infidel Tiger
1 Sep 10 at 7:15 pm
Good old Aussie business. Courageous in the interregnum, silent when there’s a scoop of gubbermint gruel to be got.
C.L.
1 Sep 10 at 7:20 pm
Wow, I was just brushing my teeth and said Homer three times and look what happened.
DavidJ
1 Sep 10 at 7:31 pm
Why didn’t they come out with this before the election rather than now? Or were they so afraid of a Labor victory that they hid?
Smauel, because they are dead set frightened stiff of reprisals from Labor.
For the first time ever I felt there was some concern in criticizing labor as they would get back at you.
I think this fear has disappeared seeing they essentially lost their majority.
JC
1 Sep 10 at 7:34 pm
My view, once something is announced as policy it is on budget. Regardless. Otherwise it just ain’t policy. This is whether you are private or government.
DavidJ
1 Sep 10 at 7:37 pm
Why would anyone be afraid of Labor? They are a bunch of pussies.
Rococo Liberal
1 Sep 10 at 7:43 pm
Well take a look, RL.
The mining houses fought back and they were called all sorts of names under the sun from crooks to cheats to liars by Shane Wand and other labor cronies.
They fought back because in the whole scheme of things they don’t really have much to do with the federal governments as their interaction is with the states for the most part though not all.
They fought back hard. However imagine a sector with much more Federal intervention and less profitable. They would have been scared shitless of Labor.
These aren’t nice people to have on the wrong side, RL.
There were times when Labor made some serious threats against Telstra for instance to the extent that it could be considered thuggish.
JC
1 Sep 10 at 7:49 pm
I was being facetious JC
Rococo
1 Sep 10 at 7:55 pm
I was being facetious JC
Rococo Liberal
1 Sep 10 at 8:00 pm
My last repsonse came via my Kindle. What a fabulous gadget it is. Now when I go to Tahiti in a few weeks, I’ll be able to keep up with Catallaxy without having to take my laptop.
Rococo Liberal
1 Sep 10 at 8:04 pm
Forget gadgets, RL and get yourself a decent wardrobe.
JC
1 Sep 10 at 8:08 pm
RL, Joe’s looking out for you buddy
tal
1 Sep 10 at 8:25 pm
This popped into my mailbox recently. I can’t vouch for where it came from, but it’s worthy of consideration:
I am a network architect for one of Australia ’s largest Telco’s – so I speak with some authority on this issue.
Here are the technical reasons this will fail :
1) fibre optic cable has a maximum theoretical lifespan of 25 years when installed in conduit. Over time, the glass actually degrades (long story), and eventually it cant do it`s bouncing of light thing any more. But when you install fibre outside on overhead wiring (as will be done for much of Australia ’s houses, except newer suburbs with underground wiring), then the fibre degrades much quicker due to wind, temperature variation and solar/cosmic radiation. The glass in this case will last no more than 15 years. So after 15 years, you will have to replace it. Whereas the copper network will last for many decades to come. Fibre is not the best technology for the last mile. That`s why no other country has done this.
2) You can not give every house 100Mbps. If you give several million households 100Mbps bandwidth, then you have exceeded the entire bandwidth of the whole internet. In reality, there is a thing called contention. Today, every ADSL service with 20Mbps has a contention ratio of around 20:1 (or more for some carriers). That means, you share that 20Mbps with 20 other people. It`s a long story why, but there will NEVER be the case of people getting 100Mbps of actual bandwidth. Not for several decades at current carrier equipment rates of evolution. The “Core” can not and will not be able to handle that sort of bandwidth. The 100Mbps or 1Gbps is only the speed from your house to the exchange. From there to the Internet, you will get the same speeds you get now. The “Core” of Australia ’s network is already fibre (many times over). And even so, we still have high contention ratios. Providing fibre to the home just means those contention ratios go up. You will not get better download speeds.
3) new DSL technologies will emerge. 15 years ago we had 56k dial-up. Then 12 years ago we got 256k ADSL, then 8 years ago 1.5Mbps ADSL2, then 5 years ago 20Mbps ADSL2+. There are already new DSL technologies being experimented on that will deliver over 50Mbps on the same copper we have now. $zero cost to the tax payer
4) 4G wireless is being standardised now. The current 3G wireless was developed for voice and not for data, and even so it can deliver up to 21Mbps in Australia . There are problems with it, but remember that it was developed for voice. The 4G standard is specifically being developed for data, and will deliver 100Mbps bandwidth with much higher reliability (yes, the same contention issues apply mentioned earlier). $zero cost to the tax payer
5) The “NBN” will be one of the largest single networks ever built on earth. There are only a few companies who could do it – Japan ’s Nippon NTT, BT, AT&T;, Deutsche Telekom etc. Even Telstra would struggle to built something on this scale. Yet we are led to believe that the same people who cant build school halls or install insulation without being ripped off are going to to do it ??? Here at Telstra, we are laughing our heads off !! Because when it all comes crumbling down, after they have spent $60+billion and the network is no more than 1/2 complete, it will be up to Telstra to pick up the pieces ! (shhhh don’t tell anyone, it`s our secret)
boy on a bike
1 Sep 10 at 8:39 pm
“Why would anyone be afraid of Labor?”
Rumour has it that Big Bill Ludwig in Qld – the real premier – is promising terrifying vengence on the mining companies for opposing ‘Their’ RSPT.
Dust still to settle from election debacle of course, and maybe he will find other things to occupy his time.
But essentially expect Labor Inc to be going after business that has had the temerity to seek to protect its interests with flensing knives. Remember KRudd’s little quip to the mining companies about ‘long memories’ ? Labor can hate for generations.
Myrddin Seren
1 Sep 10 at 8:47 pm
Because when it all comes crumbling down, after they have spent $60+billion and the network is no more than 1/2 complete, it will be up to Telstra to pick up the pieces ! (shhhh don’t tell anyone, it`s our secret)
At that moment, we shall gather every NBN-booster and hang them from a telegraph post.
dover_beach
1 Sep 10 at 8:47 pm
JC
As the resident Catallaxy toff, I think I am the fashion setter here.
When I hear of grown men wearing, let alone tucking in, polo shirts, I wince in my old Cranbrookian bones.
Rococo Liberal
1 Sep 10 at 8:47 pm
Or should I say ‘shiver’ in my old Cranbrookian bones.
Rococo Liberal
1 Sep 10 at 8:48 pm
This ‘new plan’ is just another excuse for not doing anything meaningful, something that the Libs are good at
rog
1 Sep 10 at 9:18 pm
Plus, the ‘new plan’ does not do away with the NBN it just adds confusion to the mix via a 4g wireless.
But of course Bolt knows this, he is just so switched on
rog
1 Sep 10 at 9:22 pm
boy on a bike – interesting read. The point abut higher speed is that people will grab what they need and then return to idle. So the contention – choking issue is really a little bit of a furphy. You don’t get millions online wanting 100mbs 24/7. Most people simply dont use the net for much more than net browsing and checking emails. They put very little drag on the capacity.
Latest fibre technology has lifetimes of 60+ years.
I agree with the contention that installation in weatehr exposed areas will cause issues.
I think the main issue here is takeup. There are not enough customers willing to spend $100 month on the net to warrant this infrastructure.
and when you see in France they have managed to get 100mbps over copper – well that will match fibre starting point
also, many people will want mobile broadband, given iphones and ipads etc.
will be interesting to see how it all pans out
i think oakshot and wilson are trending to labor – wilkie will support no-one, meaning 75-74 –
we live in interesitng times!
pete m
1 Sep 10 at 9:35 pm
But RL, wasn’t it you who said today’s corporate law johnnies are wearing Armani suits, gold cufflinks, French cuffs and a dashing tie?
Two observations:
- Is that supposed to be the scoop? Wow. Really? Suits and French cuffs? Who’d have thought it? and:
- Isn’t EVERYONE wearing that get up nowadays?
Now if you’ll excuse me I have to pick the right Zegna jacket to go with tonight’s black linen shirt.
Ev630
2 Sep 10 at 1:23 am
“i think oakshot and wilson are trending to labor – wilkie will support no-one, meaning 75-74 – ”
I hope their electorates eviscerate them for it next time round. Opportunistic, low-intellect, self-interested, scum.
Ev630
2 Sep 10 at 1:24 am
ev
I wouldn’t count Windsor out just yet.
JC
2 Sep 10 at 1:34 am
The Treasury’s costings are a total disgrace. They left out the cost of the NBN from labors figures.
JC
2 Sep 10 at 1:49 am
They’re “off-budget”, JC.
C.L.
2 Sep 10 at 1:59 am
This type of shit would get people jail in he private sector.
JC
2 Sep 10 at 2:04 am
That was Kroger’s point when he poleaxed Fredo on election night.
C.L.
2 Sep 10 at 2:11 am
Freddo Frog? That’s a good one!
Ev630
2 Sep 10 at 4:24 am
rog, the addition of 4G adds choice rather than confusion.
boy on a bike
2 Sep 10 at 6:10 am
pete m, fibre might last longer these days, but the longest warranty I can get on an indoor installation in a controlled environment is 25 years. Whilst the manufacturers might claim it will last 60 years when hung from power poles, I’ll take the approach of “Let’s see about that”.
The things with the shortest life span are the switches and routers. I’m sure they’ll be replaced at least every 8 years, and they are going to cost billions and billion and billions. And billions.
boy on a bike
2 Sep 10 at 6:13 am