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August 07, 2006

Telstra pulls the plug on FTTN

The game's afoot, as they say. Telstra has thrown down the gauntlet to the Federal Government, with the announcement that it has scrapped its plans to develop a $4 billion Fibre To The Node (FTTN) network.

Telstra's Phil Burgess rang ACCC chairman, Graeme Samuel, this morning, to inform the competition regulator that since he wasn't accepting Telstra's version of its costs in providing services - which would have allowed the company to kill off competition - it was off home with its bat and ball.

So now we'll see whether the G9's alternative plans really are a gigantic bluff, as Stephen Bartholomeusz suggested. Samuel thinks not, apparently:

As surely as night follows day, there will be a high speed broadband network built. I don't think we need to be held hostage by Telstra to achieve that.

Posted by cw at August 7, 2006 04:32 PM

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I heard that 'fibre to node' (I don't understand this) is not what the rest of the world is doing. They are using copper wires and providing very high speed internet. Perhaps Telstra is overeaching itself. More likely politics.

Posted by: Andrew at August 8, 2006 12:11 AM

FTTN allows the last mile of copper to deliver higher speed internet to the home. Essentially speed increases the closer you are to the exchange. FTTN effectively brings the exchange closer to the home.

FTTN is generally a good strategy - Telstra's plan was not though (I won't bore you given that enough has been said on that previously). Having said that, we need to re-focus back on the Government's and the ACS's goal: a minimum of 10mbps download at

Posted by: Christopher Hunt at August 8, 2006 10:17 PM