google alliance

If I were Thodey I would be looking VERY closely at forming an NBN busting alliance with Google.
The Google broadband network is to be rolled our in the states and other countries, with target speeds of 1 GB/s, 10 times the NBN max speeds. Apart from illustrating the folly of committing to what looks like cutting edge technology at a premium price (the NBN)it also cuts the guts out of the NBN economics, by providing an alternative competing network
Firstly Google would LOVE to snare half the australian population by striking an exclusive alliance with Telstra. Where else in the world would they be able to find such a dominant telco to partner with? That would leave all the other telcos hanging on to the NBN coat-tails which would look rather threadbare once telstra had departed.This would be a win win for both sides. Google gets instant access to scale and telstra gets to partner up with an innovative giant instead of being held to ransom by the Rudd government.

What else could Telstra offer google? Perhaps an exclusive android only handset range, ditching the ageing iphone for the newer more flexible google developed OS android. If telstra embraced the google phone range currently led by the "nexus one", they could steal the march on other telcos. By its own admission they missed the boat with the iPhone, perhaps the chance to grab an exclusive arrangement with the next big thing could make up for market share loss with the iPhone.
Telstra have worked with google before in directory and search related issues. So they have respect for each other.

I wonder about the timing..... Thodey was coy about the Google broadband announcement. Could it be that there is serious talks going on with Google? Strange that the Google announcement was on the same day as telstras 1H profits.

Could it be that Telstra could separate its network assets and spin it into a joint venture with google rather than the NBN? This would satisfy conroys demands. But more importantly could be quite an attractive alternative to partnering with a slow moving government entity. The fast moving market leading innovative google would be streets ahead as a partner IMO. For most investors, the network separation is a given , so it should be an easy sell to partner with google with its track record and high growth profile.