engine - 12:02 pm on Jun 22, 2010 (gmt 0)
Australia To Get Rid of Copper And Move 100pct To Fiber [arstechnica.com]
Australia's going all-in with its government-run fiber network. The government has now convinced the country's dominant telco, Telstra, to sign on with the scheme, get rid of its copper and cable lines, and transition its subscribers to the open-access national fiber program. When the project is complete, Australia will have taken an almost unprecedented step for a country of its size: legacy telecommunications infrastructure will be almost gone.
Although Australia had planned to move forward with its AUS$43 billion fiber network with or without Telstra, Telstra's decision to join the party is a significant one—the company could have held out and fought to keep its customers from defecting to fiber, setting the stage for a long platform war. In the end, though, there just weren't many benefits to doing this; a recent report from McKinsey and KPMG reemphasized the fact that the new fiber buildout would "accelerate the evolution of the industry," and it would be hard to compete with open-access fiber-to-the-home on speed.