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... Next G broadband price now below Broadband Guarantee threshold
by Stuart Corner
Monday, 25 January 2010
As iTWire forecast last year, the latest round of price cuts to Telstra's Next G wireless broadband service has the potential to greatly reduce the number of Australian homes eligible for subsidised services under the Australian Broadband Guarantee.

The ABG scheme subsidises broadband services where 'metro-comparable services are not available. It presently defines metro-comparable as "a service offering peak data speeds of at least 512/128 kbps and a price of not more than $2500 over three years, including equipment, installation, monthly fees and travel costs." Under enhancements to the programme that commenced on 4 August 2008, the minimum monthly usage allowance was increased to 3 GB per month.

Just a year ago, Optus' 3G wireless broadband service was approved as an ABG subsidised service and, as we suggested at the time, this opened up the possibility of Next G reducing that market to only the last one percent of Australians.

Telstra's new Next G wireless broadband pricing includes a 3GB per month plan for $49.95 ($39.95 if bundled with a Telstra home phone and $29.95 with other Telstra services). At its full price this works out at less than $1800 over two years, well below the ABG threshold.

Telstra claims that Next G covers 99 percent of the population and while it does not specify the minimum bandwidth available at the fringes of the coverage areas it seems more than likely that Next G would be able to meet the 512/128 minimum required for the ABG, especially as mobility is not required.

Telstra in fact attempted to become a supplier of subsidised services under the ABG scheme using Next G, which suggests that the network is well capable of meeting its requirements.

Telstra Country Wide group general manger, Geoff Booth, said in December 2008: "Telstra has a proposal now before Department of Broadband, Communications and the Digital Economy for the Australian Broadband Guarantee program to offer subsidised access to fixed wireless broadband using its world-leading Next G network combined with high-grade Yagi antenna...As soon as we get the go-ahead we are ready to roll out this tremendous product to people in rural and remote areas who are crying out for better broadband."

Telstra told iTWire this week that its initial proposal had been rejected by the Department and it had decided not to submit an amended version.

"There have been a number of changes in the regional telecommunications market since our original ABG submission, along with changes to the ABG conditions. In these circumstances Telstra did not believe that there was a sustainable business case for participation in the program, and therefore were not in a position to lodge a revised application to participate in the ABG," a spokeswoman said.

However she added that Yagi antenna Telstra had planned to use was available for customers to purchase to boost Next G broadband performance in marginal areas where mobility was not required.

Rooftop TV antennas are typical examples of Yagi directional antennas. iTWire was unable to locate such a device on the Next G web site. However for just over $100, customers can purchase a fixed building mounted antenna offering a 6.5dB gain.
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