[Chapter-delegates] Structural separation in Australia

[Paul Brooks]

On 2/06/2011 6:28 AM, Joly MacFie wrote:
>
> I see Australia has rolled out it's structural separation scheme
>
> http://www.minister.dbcde.gov.au/media/media_releases/2011/196
>
>
We're still working through the full implications of the latest announcements - which
are still public consultation papers and subject to more change, really just the
latest stage of a long running saga.
The implications are also related to a forthcoming deal between Telstra and NBN
Company, which will see NBNCo pay Telstra around AU$9bill over the NBN rollout period
for bulk duct acess, exchange access, and Telstra agreeing to move retail services
over to the NBN.
Another related issue is the government setting up a new service provider  "USO Co"
and moving the Universal Service Obligation delivery requirement from Telstra to the
new USO Co.
These three are separate, but intertwined developments all happening concurrently.
Interesting times, and a great deal of (sometimes impenetrable) document reading.

(This week was CeBIT exhibition in Sydney, and also "Cybersafety week" - the Minister
sent out no fewer than 6 announcements this week alone, of which the above was just
the latest)

> Any comments from ISOC-au? What happened with the Level 1 vs level 2 thing?
>
> What are they going to do with all that copper?

"Level 1 vs Level 2" - don't know what you're referring to here Joly - please explain?

AS for the copper - that one is tied up in the Telstra/NBNCo deal, which has not yet
been finalised and is being negotiated behind closed doors as a commercial
arrangement. Its a different issue to the structural separation.
Current expectation is that the copper network will remain as an asset of Telstra. As
Telstra (and the rest of the industry) slowly migrates customers off the copper and on
to the NBN fibre, more and more of the copper cabling will become idle. It will be up
to Telstra what they will do with it - some of it undoubtedly they will pull out of
the ducts and melt down - one estimate I heard recently is that Telstra's mass of
copper cabling is worth around AU$6 bill in scrap metal value at the current Cu
commodity pricing!
(I guess that will make Telstra a mining company, if the definition is "digging stuff
out of the ground and selling it")

Regards,
    Paul.

-- 
Paul Brooks
Treasurer
Internet Society of Australia
www.isoc-au.org.au