conroy confuses rural network spread

Article in today’s SMH by Dan Oakes.

http://www.smh.com.au/business/conroy-fuels-a-rural-fibre-fire-20091020-h6vs.html

Extracts…

THE FEDERAL Communications Minister, Stephen Conroy, has thrown the debate over the $43 billion national broadband network into disarray by implying the Government will retain part of a copper network he has previously said is decaying by the day.

At a Senate estimates committee hearing on Monday, Senator Conroy pledged the 98 per cent of the population with access to a fixed telephone line would maintain it after the network was built, ''through a variety of policy mechanisms''.
However, the Government has said it will deliver the new fibre-to-the-home network to only 90 per cent of the population, with the remainder to be covered by satellite and wireless services.

His comment raises the question of who will maintain the fixed lines to the 8 per cent of the population currently with lines but who will not be covered by the new fibre network.
Telstra is obliged to service all rural areas under the Universal Service Obligation but it is unclear what would happen should it sell the network to the broadband company.
The vast majority of Telstra's copper network, including roughly 3000 of more than 5000 exchanges, is dedicated to servicing these rural customers, at a cost of hundreds of millions of dollars.

"While Senator Conroy will be held to his promise, the onus is on him to explain how this will be delivered," the Opposition communications spokesman, Nick Minchin, said last night. ''Will the [broadband] company be required to run three networks: fibre, wireless and satellite as well as copper?
"And who will be responsible for delivering retail services under the Universal Service Obligation, if Telstra no longer owns a network and the NBN company is only permitted to operate as a wholesale business?"

My Opinion… Has Senator Conroy the intellect and abilities to control this giant technical enterprise of NBN, while successfully dealing with Australia’s largest Telco?