TELSTRA chief executive Sol Trujillo has warned the Government that Telstra will cancel any plans to build a $4.5 billion high-speed fibre broadband network if there is no decision on who should build it by the end of next month.
Telstra CEO Sol Trujillo has given the government a month to settle the Broadband stalemate
The private threat came as Telstra also attempted to ratchet up the public pressure on the Government by revealing the cheapest price for its proposed broadband network.
In a briefing to journalists yesterday, Telstra executives said the company would charge $59 a month to its rivals for access to a basic service.
But this would give users relatively slow speeds of 512kbps -- only double the current basic model and just 1 per cent ofthe maximum speeds of 50Mbps possible with Telstra's proposed new fibre network. Customers wanting higher speeds would have to pay much more and Telstra is understood to have plans to withdraw its $59-a-month price after two years.
$59 wholsale for a pissy little 512 kbps connection. You may as well sign up to Optus or Vodafone's wireless internet and get 1-1.5 Mbps for the same money. Optus labelled the announcement as an "insult to all Australian businesses and consumers". Which is pretty much standard Telstra practice.
The insult continues:
Despite the $59 entry-level pricing announced yesterday, Telstra wants its average wholesale price to be about $85 a month and its top price is understood to be well over $100 a month.
Averaging $85 a month for what I presume to be a 1-4 Mbps connection is outrageous. Is Telstra trying to find a way of not spending $4.5 billion on a new network, when they can rip off people on an old existing network?