Unwanted advice: Trujillo tells Obama how to run the Internet

Angus Kidman
19 January 2009, 7:51 PM


Hey Barack! Want to set up an Internet that everyone hates? Mr Trujillo has some ideas for you...


The chances are pretty good that incoming US president Barack Obama is not looking for advice on how to run the Internet from an executive who couldn't get a near-monopoly company organised to bid on building a national network for a much smaller country.

However, Telstra boss Sol Trujillo has never been backwards in coming forward, so it's no surprise that he's popped up in the pages of US magazine Business Week offering his take on what the new American government should be doing to encourage usage of the Internet. It's also no surprise that his viewpoint is that a lot of money should be spent and that telcos should be allowed to do more or less whatever they like with it. It's an argument he's been presenting for years.

There's several ways of interpreting this move. With Trujillo under heavy pressure to explain Telstra's botched NBN bid to shareholders, he may be looking to increase his US profile ahead of getting the next job. If he wants to stick around, he may want to demonstrate to the local marketplace that he has a global perspective. He certainly spends a lot of time in the piece gloating about the speed and coverage of Telstra's Next G network, while somehow failing to mention how expensive it is or that the vast majority of people still use low-speed copper connections which were essentially built when Telstra was not a private company. But all that's to be expected.

When considering the vexed issue of net neutrality — which most US readers are going to care about more than what's happening down here in Luhrmanville — Trujillo has come up with a position that's controversial and improbable. "Getting the right policy mix also would require shattering the myth of net neutrality," Trujillo (or, realistically, a well-briefed comms droid) wrote. "It may seem like a high-minded ideal to argue that everyone should have unfettered access to telecom networks at a discounted rate. But one low price for unlimited use destroys telecommunications companies' incentive to invest the tens of billions of dollars needed to create and maintain networks." (This is pretty much the exact approach Telstra has taken with its Next G network — charging a fortune is seen as the only fair outcome after spending a mozza of its lown money.)

Trujillo would also like to see the US adopt the capped bandwidth model which we're universally saddled with down under. "People who consume massive amounts of bandwidth, by distributing movies online, for example, would pay more than small users. Net neutrality works directly against the goal of unleashing private capital and know-how to build a nationwide, high- speed mobile Internet. Regulatory clarity must be in place before the private sector will risk capital."

Perhaps fortunately for the people of the US, the incoming administration does seem a little less keen on sucking up to the private sector than its predecessor. Asking for a lot of funds for the telco sector while also arguing they should be able to charge more probably isn't going to fly well in the blogosphere, and seems an unlikely policy to advocate. But then, so did not submitting a proper bid for the biggest and most lucrative project that's ever going to emerge in Telstra's home market.


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Raindog (User):

But then, so did not submitting a proper bid for the biggest and most lucrative project that's ever going to emerge in Telstra's home market.

Is this network going to emerge at all? I doubt it, Our spendaholic government will have no chance of getting off the ground.

We would have had an interim WiMax network up and running now but stand by and wait for Conroy to embark int excuse mode when another election promise hits the rocks.

Sol get his dollars regardless of his performance, at least his time spent lecturing Obama, will be time he does not have, to do more damage to Australian telecommunications.

19 January 2009, 8:11 PM (3 years ago)report abuse Send to a friend reply

Tin (Regular user):

Why would the US government listen to Sol? The company he ran was accused of not following the laws, and he buggered off out of the country when it all come out in public.

On second thoughts... Yes, let them have him back. And ban him from returning to Australia :-)

20 January 2009, 10:46 AM (3 years ago)report abuse Send to a friend reply

Tim_C (New user):

Good article Angus. As if Obama would give a flying f&*) what Sol thinks. On the one hand I am glad Telstra are not (at this stage) in the running to build the NBN. On the other the way things are going with the governments lack of urgency and the fact surplus is already sliding away very quickly, we may never see a NBN built without Telstra.

By the time they actually get this thing off the ground the speeds they are talking about will already be in the dark ages. They will need to start another NBN mid project.

20 January 2009, 12:28 PM (3 years ago)report abuse Send to a friend reply

Dan Warne (Regular user):

Quoting Tim_C:
As if Obama would give a flying f&*) what Sol thinks.


Yes, well, especially since Trujillo is up to his teeth in involvement with the republican party, and Obama represents this other thing called the Democrats...

20 January 2009, 12:59 PM (3 years ago)report abuse Send to a friend reply

epaalx (New user):

I suspect Sol is heading back home soon.
I wanna know how many 3rd world countries his his golden parachute could feed.

21 January 2009, 10:09 AM (3 years ago)report abuse Send to a friend reply

mono (New user):

Boo Hoo to Telstra. Our parents and Grandparents paid to build the copper network we are now charged almost $50 flat rate per month just to have connected. Most tech savvy folks know roughly how much it would cost to maintain Telstras networks. Land, Satt, GSM etc. Alot less than they charge.

And they declare rude annual profits that would make your jaw drop. Thats even AFTER they make the ludicrous annual bonus payments to the impotent board members.

Are they private now or public? Stop leaching off of us Telstra!

Hope they go bankrupt!

Cudos to competition!


22 January 2009, 3:47 AM (3 years ago)report abuse Send to a friend reply

BL (New user):

So
- Telstra is currently running the BIGGEST IT project in the world,
- We have the fastest and biggest mobile network in the world,
- Telstra have recently been votes the BEST broadband provider
- Telstra employ (direct, contract and consultants), 1000s of people in Australia
- Telstra will probably be building a national broadband network on their own regardless...

... maybe they aren't that bad

22 January 2009, 9:24 AM (3 years ago)report abuse Send to a friend reply

Tin (Regular user):

Quoting BL:
So
- Telstra is currently running the BIGGEST IT project in the world,

Yeah. That's probably true. Though Trujillo doesn't actually run that, so this is a pointless "fact".

Quoting BL:
- We have the fastest and biggest mobile network in the world,

When it works, perhaps. Pretty sure Canada has a similar size network, BTW.

Quoting BL:
- Telstra have recently been votes the BEST broadband provider

By who? Themselves? Or some scheme that presumes best equals biggest?

Quoting BL:
- Telstra employ (direct, contract and consultants), 1000s of people in Australia

And then regularly fire the front line ones. There used to be a time when you could say they employed hundreds of thousands... But 1000's is probably closer now.


Quoting BL:
- Telstra will probably be building a national broadband network on their own regardless...

And continuing their ridiculous pricing, corporate tantrums, pissing off customers by removing fully functional services in return for broken ones, etc... And all they are proposing is extending NextG and hoping for government "subsidies". If they'd kept the ISDN on for rural people, they wouldn't need to because they wouldn't have lost customers to satellite providers.

Quoting BL:
... maybe they aren't that bad

If you're a Telstra shareholder, employee or moron perhaps.

22 January 2009, 10:57 AM (3 years ago)report abuse Send to a friend reply

Raindog (User):

Quoting Tin:
Quoting BL:
- Telstra have recently been votes the BEST broadband provider

By who? Themselves? Or some scheme that presumes best equals biggest?

Hell no, Telstra employ (sorry, heavily sponsor) a grubby little supposed media journal to bestow such awards back on them.
The same media journal that awards it's own staff similar award and accolades. If you'd like an Industry award too, then just become a sponsor, you wont win one without it. :>

22 January 2009, 11:11 AM (3 years ago)report abuse Send to a friend reply

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