Macquarie Technology Group Limited · ASX:MAQ
Macquarie Technology — Macquarie Telecom Group — Non-Deal Roadshow (October 2006)
23 slides from Macquarie Technology's roadshow presentation, October 2006
Slide 1: New Age Customer Access Networks
New Age Customer Access Networks Options for Wide Area Network (WAN) Access Maha Krishnapillai ATUG/Macquarie Telecom Breakfast Series - Perth October 2006 Macquarie Telecom means business
Slide 2: Why Focus On Access?
Why Focus On Access? Over 60% of the Wide Area Network cost is Access cost. The LAN environment has huge bandwidth (100/1000Mbps) The Carrier’s Telecommunications network has large diverse bandwidth as well The connection between the two – the “Customer Access” - is the costly, capacity constrained,
Slide 3: Where Are Changes Occurring?
Where Are Changes Occurring? More bangs for your buck Bigger bandwidth bangs IP over everything / everything over IP Flexibility to change fast Mobility Simplicity for the customer Everything just works Applications are more graphics intensive Macquarie Telecom means business
Slide 4: Access Technologies – Metropolitan Access Networks
Access Technologies – Metropolitan Access Networks The Rise and Rise of Ethernet in the WAN Conventional fibre Ethernet Mid-band Ethernet Services over bonded copper pair Media Access Gateways Multiple VLANs 802.1Q in 802.1Q Services Point to multipoint services Macquarie Telecom means business
Slide 5: Access Technologies: Flavours of DSL
Access Technologies Flavours of DSL Assymetric – ADSL 6M/640K – ADSL2+ 24M/1M – VDSL 2 250M/1M+ Symmetric – SHDSL 2M/2M – SADSL 512K/512K Distance vs Speed SHDSL more robust Shared copper (LSS) or Unbundled Local Loop Contention Rates Macquarie Telecom means business
Slide 6: Access Technologies: Pure IP Satellite
Access Technologies Pure IP Satellite Pure 2 Way IP at last – not broadcast MPEG Spot beams – Multiple transponders for Australia IP Acceleration Power Variation / Data stream continuity Broadband symmetrical service speeds Smaller dish requirements High Angle for Australia – Geostationary Over subs
Slide 7: Access Technologies: Secure Socket Layer
Access Technologies Secure Socket Layer Secure Remote Access – With or without Digital Certificates – Radius Authentication Simple and flexible to use Good for corporate user control Does not need specialist setup cf IP Sec Opens up the possibilities of Broadband speed for global corporate access vi
Slide 8: Access Technologies: Wireless Data
Access Technologies Wireless Data GPRS 3G vs Wimax – the battle for useable speed and coverage Exploding area for standards The security vs useability trade-off Macquarie Telecom means business
Slide 9: Decoding Reality From Rhetoric
Decoding Reality From Rhetoric What do T3, G9, ULL, FTTN mean for competition in telecommunications in 2006 and beyond? Macquarie Telecom means business
Slide 10: Telecommunications Regulation – "101" Refresher Course
Telecommunications Regulation – “101” Refresher Course Australian Communications and Media Authority (ACMA) – National interest / technical issues / telco licensing / number control / etc Australian Competition & Consumer Commission (ACCC) – Competition policy Monopoly areas – “Declared Services” &
Slide 11: Telstra Privatisation
Telstra Privatisation Initial sale – 29 September 1997 Second tranche – 25 July 1999 Third tranche – 23 October 2006 Conflict of Interest – Govt as owner & regulator – Issue is not ownership, but competition in the sector – Public monopoly vs private monopoly Macquarie Telecom means business
Slide 12: Telstra's Business is Massively Profitable
Telstra’s Business is Massively Profitable Macquarie Telecom means business
Slide 13: ULL Declaration and the Debate Around Access
ULL Declaration and the Debate Around Access Telstra Exchange Customer Telstra Home Fibre network Telstra Competitor Pillar DSLAM DSLAM Copper Copper Compet’r Network Fibre Macquarie Telecom means business
Slide 14: ULL Declaration and the Debate Around Access
ULL Declaration and the Debate Around Access Clearly a monopoly Declared service ACCC arbitrate on price, terms & conditions Dispute notification Arbitration Telstra – Undertaking – $30 flat rate across 4 bands – undermining the process through lobbying of Government Macquarie Telecom means business
Slide 15: Competition in the Sector Driving Choice of Broadband Provider
Competition in the Sector Driving Choice of Broadband Provider Objectives of competition – Lower prices / greater product choices / innovative services Broadband penetration is poor in Australia OECD Broadband subscribers per 100 inhabitants, by technology, December 2005 30 DSL Cable Other 25 Austra
Slide 16: Australia's Broadband Price and Bandwidth is Poor
Australia’s Broadband Price and Bandwidth is Poor Top access speed of incumbent’s residential broadband and monthly subscription fee. Source: Assessing competition within the Australian market — a neutral view, Spectrum Strategy Consultants, 22 March 2006 Macquarie Telecom means business
Slide 17: The Myth of Fibre
The Myth of Fibre Only Telstra can deliver? Australians doomed to a future of ‘fraudband’ – between 256kbps and 1500kbps. ADSL2+ networks currently offer from 6mbps up to 24mbps. Macquarie Telecom means business
Slide 18: Fibre to the Node (FTTN)
Fibre to the Node (FTTN) All telecommunications networks in the world increasing number of fibre links Telstra’s proposed $3.4b FTTN Plans – Serving 4 million customers in 5 major cap cities (less than half of all Australians & excluding all regional areas). – Telstra discontinued talks with the ACC
Slide 19: FTTN Cannot be Unbundled
FTTN Cannot be Unbundled Today Telstra • Telstra controls Fibre Customer Telstra Exchange Home the bottleneck. network • But the network Telstra Pillar Competitor can be DSLAM DSLAM Copper Copper Compet’r unbundled. Network Fibre • Competitors can get around the bottleneck. FTTN Telstra • Telstra co
Slide 20: G9 Plan for Higher Bandwidth in Australia
G9 Plan for Higher Bandwidth in Australia Creation of an industry-owned, special purpose company called ‘SpeedReach’ to make key decisions about the network. A process to secure more extensive capital investment in the FTTN network — thus delivering high bandwidth broadband to millions more Australi
Slide 21: An Alternative Ownership Model Can Exist
An Alternative Ownership Model Can Exist – Telstra Not Default Owner Access Owners / financial investors Telstra Equity/ debt Telstra’s FTTN AccessFTTN Network Telstra copper from SpeedReach Owner (FANOC) Network Node to Home Nodes Fibre from exchange to nodes Other Router in exchange Access Access
Slide 22: G9 Position on FTTN for Australia
G9 Position on FTTN for Australia Telstra’s position G9 position if G9 position if governance model governance model (SpeedReach) (SpeedReach) applies does NOT apply • Agrees to joint • FTTN can proceed ownership model • Rejects joint • FTTN can proceed ownership model FTTN can NOT proceed • Does no
Slide 23: Questions?
Questions? Macquarie Telecom means business
Macquarie Telecom Group — Non-Deal Roadshow (October 2006) on 6ix