Australia Isp Study Essay

1412 words - 6 pages

(U) In February of 2014, Australia had 41 internet service providers (ISPs) delivering nationwide services such as ADSL, mobile, NBN, satellite, cable, and fiber. By the year 2012, 88.8 per cent of the population was connected to the internet.ii Statistically, Australia is twelfth in the world in terms of how deeply it has permeated the total population with connectivity. The percentage of people connected has steadily risen every two to three years by nine per cent since 2007.iii If this momentum continues, Australia will have 97 percent of its population connected by the year 2015.iv
Australia has 22 peering/public exchange points in or near Perth, Adelaide, Melbourne, Sydney, and ...view middle of the document...

viii In 1946, the Commonwealth Government created the Overseas Telecommunications Commission (OTC), which connected Australia to the rest of the world in every facet of telecommunications.ix The PMG detached into two entities in 1975, creating the Australian Postal Commission and the Australian Telecommunications Commission, which operated as Telecom Australia.x In 1981, Telecom Australia initiated the nation’s first mobile network, and by the mid 1990’s Telecom Australia unified with the Overseas Telecommunications Corporation and changed its name to Telstra. During this time period, the internet developed into a principal share of their business, thus establishing BigPond and a high speed wired internet service.xi
Telstra undertook a limited privatization, commonly referred to as T1, in November 1997 where the government sold roughly 33% of its shares to the public.xii During that year the government passed the Telecommunications Act 1997 which directed Telstra to organizationally separate, or confront a range of further regulatory controls together with a mandatory separation and the probability of being unable to join in future spectrum auctions.xiii The government sold another 16.6% of its shares (T2) in September 1999, and by June of 2003, they announced regulation for the sale of its remaining shares in Telstra.xiv The last of the government’s 31% in Telstra shares were sold in November 2006, and their outstanding 17% shareholding was relocated to a Future Fund in February 2007.xv
In 2011, they revealed they would be instituting changes to the framework of their company; in August of 2013, Telstra bought NSC Group, an industrial automation service supplier. Furthermore, they purchased O2 networks in 2014, expanding Telstra’s influence as a developer of data networking and security software.xvi By mid 2014, it is expected that the Australian government’s NBN (National Broadband Network) and Telstra will settle a new contract over Telstra’s infrastructure access, giving the NBN control of Telstra’s copper network.xvii Access to Telstra’s groundwork is critical to the government’s strategy to replace the existing copper with a faster fiber-to-the-node network, giving all Australians connectivity speeds of 25 Mbps by 2016.xviii
Telstra’s 11 billion dollar deal with the NBN was formally publicized in 2011. The deal meant that the government, and the NBN would rent Telstra’s underground infrastructure and start acquiring their fixed-line phone customers.xix The deal also expected Telstra not to deliver broadband services utilizing their pay TV cables.xx Under this arrangement, Telstra was anticipating to earn a surplus of two to three billion dollars during the following two years from payments to decommission its copper infrastructure and traffic its customers to the NBN.xxi However, changes to the original strategy under a new Australian political party, and construction delays, triggered a slowdown in those payments.xxii Thus,...

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