NBN law stalls cloud for small business

NBN law stalls cloud for small business

Summary: Anti-cherry-picking provisions in the National Broadband Network (NBN) legislation will prevent many small businesses from accessing cloud services until 2020, datacentre provider NextDC chief Bevan Slattery has warned.

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TOPICS: Cloud, Broadband, NBN
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Anti-cherry-picking provisions in the National Broadband Network (NBN) legislation will prevent many small businesses from accessing cloud services until 2020, datacentre provider NextDC chief Bevan Slattery has warned.

NBN legislation that passed the parliament yesterday evening placed restrictions on fibre network providers from offering services on their networks to residential customers and small businesses unless they offered open access layer 2 wholesale services at the same price that NBN Co offers.

Long-time critic of the government's $37.5 billion project, NextDC founder Bevan Slattery, said that cloud services are growing exponentially but would be limited in Australia thanks to the restrictions placed on fibre providers by the legislation.

"No fibre provider can offer a service to an organisation of less than 15 people," he told an industry audience at the Communications Day Summit in Sydney today. "Actually, you're not even allowed to offer a service over copper if the service is able to go beyond 24 megabits [per second]."

Slattery said the government has effectively prevented small businesses from accessing the cloud for the next nine years, unless they already had access to a fibre service prior to the legislation passing.

"How dare you discriminate all the small businesses — the major employer in this country [and] the people that need outsourced cloud services in this country more than anyone — restrict them from getting the service they're entitled to get?" he said.

"I think it's disgraceful."

Slattery said NextDC would potentially be one of the businesses affected by this provision but revealed he had a way around it.

"Fortunately for me, I'm going to hire one more person so I can actually get a fibre service delivered to my door." NextDC has 14 employees.

Topics: Cloud, Broadband, NBN

About

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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3 comments
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  • More deceptive trash talk from Bevan on the NBN. "Prevents small business from accessing the cloud for 9 years". What utter rubbish.

    While it's true that *some* small businesses won't get access for 9 years, those are in the tiny minority (ie those connected in the final year of rollout). The way Bevan's babbling, you'd think every small business is barred for the next decade. Cloud computing for small business will boom under the NBN, and as the rollout progresses, businesses that could never hope to afford a fibre connection in Bevan's utopia will be able to access those services.

    How many small businesses can afford a dedicated fibre connection now? $5k+ for a connection, and $1k+ per month, just for the cloud? I don't know what Bevan's definition of "small business" is, but I suspect it's a little above average!

    Let's not forget that Bevan's "NBN v3" didn't have specified fibre at all, it was a hodge-podge of wireless and other assorted uncosted ideas based around the highest return for the vested interests of him and his mates. How would small business get the cloud under that horrible plan?

    Just as with NBNv3, his rant this time is based entirely around his own hip pocket.
    HazTechDad
  • His proof of the pudding is in the eating (has to employ one superfluous employee - if one believes he will!)

    VIZ:

    " "Fortunately for me, I'm going to hire one more person so I can actually get a fibre service delivered to my door." NextDC has 14 employees."
    Vasso Massonic
  • Oh!, who cares about these "out of the shed" operations. Get the NBN into Telstra and lets get going!
    Knowledge Expert