CONTROVERSIAL plans to extend the monopoly reach of the $43 billion high-speed broadband network could add $30 a month to phone bills.

It could also disadvantage regional economies, including Tasmania's.

NBN Co's plans have come under attack from a company selected for a $250 million government contract to build competing wholesale services to areas where Telstra is usually the only choice of broadband supplier.

Nextgen Networks has warned that NBN Co's proposal to limit the number of "points of interconnect" - the points at which retailers will be able to hook into the NBN - could crowd out competition and lead to such inefficient transit of phone calls that charges could rise by $30 a month. This would double the costs of a standard telephone service for some voice-only customers.

Nextgen, owned by construction giant Leighton Holdings, argues the extra $30 would have to be paid by either the consumer, NBN Co or through a universal-service-obligation mechanism.

Optus director of government and corporate affairs Maha Krishnapillai backed the $30 figure.

Under NBN Co's proposal, if a local call were made, say, in the NSW regional town of Armidale, it could have to be carried all the way back to Sydney to an interconnect there, then back to Armidale, he said.

This would bypass many existing backhaul network providers that could have carried the data.

"Clearly that's going to add significant cost to that particular product or service  and that's dead right," Mr Krishnapillai said. "It precludes the development of local, regional providers and it also adds costs across the board."

NBN Co yesterday dismissed the concern.



Of course they did -  it seems it will cost the consumers dearly

Hey, when is Turnbull going to start talking about FOXTEL cables again????

   

BatteriesNotIncluded wrote on Nov 13^th, 2010 at 7:46pm:




Cables are a lot better than satelitte

OECD's each-way bet on NBN
By Alan Kohler

http://www.abc.net.au/unleashed/41014.html


most comments also worth a read...

Is there any updates on the take up rates in Tasmania yet?

UPDATE ....





The Coalition's attempt to have the Productivity Commission examine the Government's $43 billion National Broadband Network (NBN) has failed, with its bill voted down in the House of Representatives.

Opposition communications spokesman Malcolm Turnbull had introduced a private members bill to refer the NBN to the commission, arguing it needed more scrutiny.

But he was unable to secure the votes of enough independents to pass the legislation and it went down by one vote.

Independent MP Rob Oakeshott supported the bill, but Andrew Wilkie, Tony Windsor and Bob Katter sided with Labor as did Greens MP Adam Bandt.


http://www.abc.net.au/news/stories/2010/11/18/3069806.htm

Doesn't the fact that Turnbull can't get his bill across the line equal an epic fail, by the standards you apply to Labor, mr longweekend?

No, my clear recollection is that you equate inability to get legislation passed, even if that failure is in a hostile senate, as a failure, as poor legislation.