Dodo thinks NBN wholesale

Dodo thinks NBN wholesale

Summary: Telecommunications company Dodo's CEO Larry Kestelman has said that he thinks it will be difficult for small players to operate on the National Broadband Network (NBN), but the company would consider becoming a wholesaler for the network.

TOPICS: Broadband, Telcos, NBN

Telecommunications company Dodo's CEO Larry Kestelman has said that he thinks it will be difficult for small players to operate on the National Broadband Network (NBN), but the company would consider becoming a wholesaler for the network.

"[The NBN] will definitely open up more competition, but it will still be difficult for the small players to be competitive; it's still to be seen how the whole backhaul scenario will play out," Kestelman told ZDNet Australia. "I just think it's got to do with the structure for interconnection and how many points for interconnection need to be done and how the final wholesale model looks. We're talking to the NBN [Co] and we'll be in a position to deliver competition."

"We've done wholesale before, we were one of the first ones to do it [and] we're certainly considering as part of our model to become an aggregator," he said.

With telcos such as Telstra, Optus and iiNet all having existing infrastructure, Kestelman believed Dodo was in the perfect position to join onto the NBN early.

"We're the largest non-infrastructure player so we're the perfect partner for NBN [Co] to kick this off. We've got no stranded assets [and] we've got no assets of our own, so all our clients can be transferred onto NBN with no issues," Kestelman said.

Dodo was not one of the first companies to jump onto the NBN bandwagon in Tasmania; however, Kestelman said that Dodo moving into Tasmania via the new network was only a matter of time.

"We have spoken to NBN [Co] about it and we are currently working very closely with them to decide at which stage we start testing their systems and processes," he said.

Yesterday, the telecommunications company launched a 3-terabyte (TB) ADSL2+ plan priced at just five cents lower than its unlimited plan at $39.85. Kestelman said that by doing this he hoped it might encourage the other internet service providers (ISPs) to stop putting download limits on broadband plans in the future.

"It's really more to bring a bit of clarity, to call out the difference. I think when you start talking about numbers like 1TB, I think it's a joke. We're still talking about peak and off peak," he said. "I just think people need to have a serious look. 1TB is a lot of data."

Kestelman said that reports of users on unlimited plans downloading upwards of 6TB to 7TB a month may be accurate, but he didn't believe it wouldn't last in the long term.

"If there's some people that are downloading 6 to 7 terabytes, then that's what they need [and] that's what they should get and others should download less and it all should even out in the end," he said. "I don't believe people are out there downloading for the hell of downloading. Even if it's high in the first few months, then we as ISPs need to provide what the customers need."

"I think after a while, there's only so much things you can download in the world."

Kestelman said that recent comments from iiNet CEO Michael Malone that there were only three and a half telcos left, which encouraged him to get vocal and put out the new plan.

"Those are pretty big statements and I thought it was up to me to take the fight to these guys," he said. "That's what a true competitor and a disruptor to the big boys needs to do; we need to push the boundaries of what can and can't be done and sometimes sacrifice the fat profit margins that a public company has to deliver."

Topics: Broadband, Telcos, NBN


Armed with a degree in Computer Science and a Masters in Journalism, Josh keeps a close eye on the telecommunications industry, the National Broadband Network, and all the goings on in government IT.

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  • An interesting point of view, but the last thing we need is more middlemen in the provision of internet services via the NBN. More middlemen means more cost to the end consumer.

    This is a great chance for the government to keep things simple, with the NBN Co. providing the network, then the retailers (ISPs) providing the internet services to the consumer.
  • Unlimited means 1-3 mounths of high downloads, then normal use as you realise you don't have to back up the internet, it will still be there tomorow.
    Paul Krueger
  • I agree with that, the idea behind the NBN is to promote retail competition, the problem is the ISP's going into the NBN with the largest client base will be the winners under NBN, why do you think iiNet is buying out ISP's like Westnet, Netspace and AAPT with zeal.

    It is highly likely that there may end up being three main ISP's under the NBN, BigPond, Optus and iiNet, the rest might struggle to even find a place at the fibre table.
  • You forgot the major underestimated ISP, TPG!

    TPG own a large portion of the Fiber to the exchanges they run, the only other residential ISP's to own any Fiber are Optus and Telstra.

    TPG own the #1 peering network in Australia, so have practically unlimited local connectivity at no cost, other ISP's must pay a few to connect to it.

    TPG own a 2.5Tb/s international transit cable, the only other ISP to own a international cable is Telstra.

    TPG added 100,000 subscribers in FY10 alone, and are about to break half a million Broadband subscribers, not to mention over 200,000 mobile phone subscribers

    Internode also have a larger customerbase than some may think, over 350,000 - not small by any margain.
  • True, I had overlooked TPG, make that four, the problem is that when the NBN is rolled out and starts cutting into those high population density capital city exchange areas with bulk customer migrations the product differentiation based on whether a ISP has their own cheaper DSLAM ports of which they have a high degree of cost control will be lost.

    The NBN BB plan will be all about the 'package' and what else a Telco/ISP can offer you other than a straight vanilla flavoured NBN high-speed fixed line link, which all ISP's will be able to identically offer the customer.

    Those Telco's with a established wireless network will have a distinct advantage marketing a total communications and entertainment package covering all devices in the home.