Employee capital is critical for early-stage startups and often one of the key factors in whether a business succeeds or fails. One Australian startup is looking to alleviate this problem by helping businesses hire the right candidates through the power of crowdsourcing. The online platform draws on industry experts to assess prospective hires for startups and businesses that may not have the technical expertise or infrastructure to adequately vet candidates. The cost of the assessment is then distributed between CrowdSourceHire and the panel of experts. Co-founder Ben Liau told StartupSmart he and his other cofounders have previously worked in startups, small businesses and large corporations – and an issue across all three business types was hiring the right person for the job. “I’ve hired people who seem bright in an interview but when they started they didn’t have the right skills,” he says. “It’s a big issue many companies face – big and small – but startups especially.” The startup has a very strict application process for its industry experts, which Liau says makes sense because these people are going to be vetting others. “To date, only about 20% of the people that have actually applied to be an expert have become an expert,” he says. “We’re pretty rigorous because that’s our main selling point and differentiates us. No one is really doing this at the moment – we need to be very particular about our experts. We want the quality not the quantity.” CrowdSourceHire is now in its second month of the Telstra-backed muru-D program. The accelerator takes a 6% stake in companies in exchange for $40,000 in funding and access to its networks. Liau says the fact the accelerator is backed by Telstra means his startup has access to a wide range of mentors. “We have access to a lot of people we can talk to and it’s helped us on our way into the validation stage and we have that sounding board.” In the new year, CrowdSourceHire plans to push for investors and afterwards look at expanding into the south-east Asia market. “At the moment, what we’re doing is we are pushing for customer acquisitions because we’re looking at getting as much traction as we can. We’re looking at a global focus rather than just looking specifically at Australia.” Follow StartupSmart on Facebook, Twitter, and LinkedIn.
Earlier this year, I attended a dinner for about 150 people. The first thing we all did was head for the bar to grab a drink, swamping the staff and setting back the dinner schedule by nearly two hours. We learned that it is better to place a bottle of cheap wine and a jug of lemon squash on each table just to manage the crowd. The same lesson is now being applied to the NBN. Last Sunday saw the long-awaited signing of two deals and new rules which will, hopefully, pave the way for the National Broadband Network under the current government’s Multi-Technology-Mix model. It’s a positive development for getting more people reasonably happy sooner, but there are significant long-term challenges ahead. The Carrier Licence Conditions (Networks supplying Superfast Carriage Services to Residential Customers) Declaration 2014 is intended to manage so-called cherry-picking of profitable residential customers of fast broadband. The previous model under the Labor government discouraged anyone other than NBN Co from rolling out the local access network. In part this was to break the vertical integration stranglehold Telstra has over both retail and wholesale provision of access through its legacy plain old copper network; it was also to ensure NBN Co would not be undermined by competition. However, a loophole in the regulations was identified by TPG, allowing it to reach up to 5% of the NBN footprint as a retail provider of Fibre-to-the-Basement through its own network. The new regulations recognise the advantages of other parties choosing to roll out their own networks, but require that such networks be available on a wholesale basis to other retailers - which is to say there is a requirement to structurally separate wholesale and retail operations on NBN-equivalent services. The regulations only apply to new networks rolled out after 1 January 2015. Services already in use, such as iiNet’s TransACT fibre-to-the-node network are excluded. The wording has clearly been carefully sculpted to capture TPG’s plans. Deals with both Optus and Telstra were also signed. Both companies have agreed to progressively hand over ownership of their relevant infrastructure, Telstra’s copper access network and the HFC cable networks of both, to NBN Co. Previously, the arrangement was that these networks would be decommissioned, but they are now critical implementation options for the NBN. Agreements are consistent with maintaining the valuations of the previous arrangements so that shareholders are no worse off. Mention has also been made of actively tapping Telstra’s experience and capabilities in the NBN rollout. There is some sensitivity around this statement from the Department of Communications, after Telstra was effectively excluded from tendering to build the NBN in 2008. There would appear to be a significant mending of relations. But there are troublesome times ahead. The original Fibre-to-the-Premises-dominated NBN was big on vision but caused an overnight drop in investment in moderate-speed broadband technologies such as ADSL. This meant customers were stuck with 2008-vintage speeds while NBN Co geared up for planning and deployment. The political fix negotiated by independents Tony Windsor and Rob Oakeshott in 2010, which shifted priorities to rural areas, provided some longer term certainty for infrastructure investment in profitable urban areas, but further delayed urban rollout. The new policy settings encourage infrastructure competition on the basis of structural separation, once again providing opportunities for parties other than NBN Co to compete in the wholesale space. However, the new NBN model is focused on initial speeds of 25MBit/s up to 50MBit/s in the short term, but with no mention of Committed Information Rate or specifics of upload speeds. This myopic vision fails to recognise that the NBN is not just about “more of the same, but faster”. It is entirely about enabling fundamentally new services to domestic households, both for entertainment and for productive work-at-home. What we’re left with The emerging NBN is barely capable of delivering a couple of high-definition video streams in real time, yet this is common in a modern family household with independent internet-enabled devices. If you want to download a one-hour standard definition video, it will take about five minutes. However, if you want to produce and upload such video content, it will take three hours. Upload figures for high definition and the emerging ultra-high definition video are about fifteen and thirty hours, respectively. Cloud-based services will continue to stumble as long as policy direction fails to recognise the importance of delivery of data into the network. The much deeper issue is what happens after 2016. I’ve argued previously that “[o]ptical fibre is the only known viable technology beyond 2025. The only justification for considering anything else in the meantime is to buy us time”. A Fibre-to-the-Node deployment will at least provide the option of upgrading to a passive optical link to the premises of customers who want it, and some of us just can’t wait. But there is no guarantee that every other technology deployment has a similar evolution option. It would be wise for competing infrastructure providers to think this through, but there is no guarantee that solutions deployed in the next few years will evolve, efficiently, to the robust projected demands beyond 2025. So is this good news? Actually, yes. The NBN capital expenditure won’t be any cheaper if we consider a realistic 20-30 year timeframe, but that doesn’t matter if the faster deployment of the interim Multi-Technology-Mix generates revenues and productivity gains sooner, offsetting peak funding. The interim solutions won’t deliver a clean evolutionary pathway, but that doesn’t matter if enough customers are sufficiently satisfied in the short term. The long-term fibre-to-the-premises deployment can be managed more calmly, if less efficiently, over a longer time frame. The line at the bar is still too long. Pass me the bottle, please. This article originally appeared at The Conversation.
An Australian startup leading the way in contactless communications has opened an office in New York as part of its expansion into the US market. Tapit, founded in 2011, has been finding new ways for consumers to access information instantly on their phones – all off the back of an aggressive international expansion. Earlier this year the startup collaborated with the likes of Google and HBO to allow people to access film and television-related content on their smartphones by scanning event posters. In September, Tapit entered the Chinese market via a partnership with mobile commerce giant 99 Wuxian. Co-founder and chief executive Jamie Conyngham told StartupSmart the company opened an office in New York because it wanted to position itself where its clients were. “There’s a concentration of media in New York and a lot of iconic brands have their global headquarters there, so it made more sense for us to relocate there rather than San Francisco,” he says. Conyngham says the startup has been using Australia as a “launchpad” for global deals, which has worked well because it can bring those case studies to the US. “If you do a deal with Google or Microsoft in Australia you have that case study and you can then go to their global teams,” he says. “You can’t do that unless you do those deals in the US – Skype only takes you so far.” The company has been helped by the fact that Australia is ahead with contactless communication in comparison to other countries, according to Conyngham. “You’ve seen the massive take-up of tap and pay with credit cards and that has put us ahead in the contactless ecosystem. So we’ve been lucky to have headquarters here in that regard because the US is a bit behind – even in the UK.” Tapit also has offices in Tokyo, Shanghai and Dubai. The fast-growing startup has pioneered contactless communications for brands such as Telstra, Vodafone, Coca-Cola, Samsung and Sony. There are around 635 million smartphones fitted with near-field communications technology around the world, and Tapit expects that number to grow to one billion by 2015. Follow StartupSmart on Facebook, Twitter, and LinkedIn.
Everybody wants to be startup. Recently, The Guardian claimed they were one, along with Westpac and a number of other large and well-established companies. And if they’re not claiming to be one, they certainly want to get in on the startup action, the latest being KPMG. The professional services firm has just announced a partnership with Artesian Venture Partners that will enable it to gather non-sensitive data, from up to 1000 startups over the next five years. The data will come from a number of funds which it operates including, the Slingshot Venture Fund and the BlueChilli Venture Fund, the funds behind the Newcastle-based Slingshot Accelerator Program and the Sydney-based BlueChilli incubator. In addition, it also operates the Sydney Angels Sidecar Fund. It provides investors with tax free exposure to all those funds through its Australian VC fund, for which it’s currently raising $100 million. Artesian Venture Capital COO Tim Heasley says the data will inject some much needed evidence into the Australian startup ecosystem. “The partnership allows us to accelerate the capital raising for the (Australian VC Fund) through KPMG’s corporation connections. Importantly, it gives us a means of capturing and ultimately processing data from the Australian startup ecosystem, data that has been missing or lacking up until now,” he says. “No one has a complete read on what’s happening, what verticals are being targeted? What are the technical of other backgrounds of founders? How many have had other successful startups? How many are women? Men? What age range? “Once we have that info we can start reporting it in a meaningful way, we’re going to end up with a rich data set, and we’re effectively professionalising the startup investment scene in Australia.” KPMG was one of three professional service firms that tendered to become Artesian’ s partner, with KPMG Australia head of innovation Martin Sheppard saying it’s an important milestone for the firm when it comes to doing business with startups. “Proactively engaging with Australia’s startup ecosystem is critical to our innovation strategy,” he says. “It will expose us and our clients to new growth opportunities; provide early insights into emerging and disruptive technologies, and help us and our clients stay ahead of the curve.” They’re not the only ones seeing the opportunity. Telstra, was one of the first starting its Muru-d accelerator program. But there are other signs too. Pollenizer, BlueChilli and 25fifteen are used to hearing startups pitching to them. Now they’re doing the pitching too. Competing to secure lucrative consultant-like roles with big incumbents in a whole host of industries, including banking, insurance, telecommunications, and logistics – shipping, warehousing, things of that nature. Services they provide range basic lean startup education courses, organising and running hackathons. BlueChilli chief growth hacker Alan Jones says corporates are aware of the competition that startups face. “Primarily what they’re aware of as a corporate is a lot of disruption in their industries is going to come from startups in the next five to 10 years,” he says. “They can see evidence of this already, particularly in banking and insurance, in travel and even in industries like automotive and airlines. We’re starting to see online native, early stage startups creating industries that have never existed before massively disrupting traditional industries. “So if there’s an opportunity to invest one million in a couple of years, in a startup that may eventually contribute 20% of your annual revenue, why wouldn’t you start exploring that?” Jones says the nature of accountability in big corporates leads to a risk averse culture and that, combined with large slow moving corporate bureaucracy, means innovation is a weakness not a strength. Realising this Woolworths recently made its own attempt to engage with startups when it launched its Wstart program. According to the program’s website it aims to foster Woolworth’s relationships with startups, bit at this stage is not doing much more than meeting with them. The first event is speed dating that gives successful applicants a chance to showcase their idea “and gain insights from the Woolworths team”. StartupSmart asked Woolworths to elaborate on its goals, they types of relationships it plans on fostering with startups, and whether it might lead to investment. “Wstart is a new program that aims to open up communication between Woolworths’ business and the startup community to drive innovation that will simplify the shopping experience for our customers and improve our business,” a spokesperson says. “We understand for a lot of startups there are few opportunities to engage with industry leaders and large organisations. Wstart is an opportunity for them to network and be mentored by senior Woolworths executives and collaborate with likeminded individuals.” No comment on whether or not it will lead to anything more meaningful, like investment or an ongoing relationship with the startups involved. Pollenizer partnerships manager Nicola Farrell says its great Woolworths is joining a growing trend of large enterprises realising that startups can help them experiment and learn faster. “We look forward to seeing a structured program in place which drives compelling outcomes for the startups involved,” she says. Follow StartupSmart on Facebook, Twitter, and LinkedIn.
Ello, Swarm, Facebook, Instagram, Twitter – if you thought there was no room for any more social networks, think again. The latest – Melbourne-based startup Incogo – is a social media platform that wants to make online interactions more “powerful, purposeful and personal”, according to founder Daniel Millin, and he’s going to do that through “emotional crowdsourcing”. Incogo’s platform officially launched last week, after almost two months in beta, and aims to fill the “gap between social media and professional media”. It’s been designed specifically to enable friends and family to share everything they’re doing in their personal lives through “journeys”. Users post journeys, like ‘conquering my fear of heights’, then their friends are able to follow and support them on their quest to fulfil that journey. Millin says it’s not about lifetime goals, but for everyday life, and he doesn’t see Facebook or Twitter as competitors (though it’s more likely they don’t see him as one, given the domination of these players). Users can post journeys, which by default are set to private, and choose those friends they’d like to share them with, or make them public if they wish. “There can be real beauty in a public journey,” Millin says. “My vision is around the world, any ordinary person could do something extraordinary and the whole world could come on board and support them in that journey. It’s like emotional crowdsourcing.” Millin founded Incogo in 2013 and has since brought on three co-founders, former PwC partner Karen Crawford, designer Marty Jonas and investor Edward Wittenberg of Melbourne-based EGW Investments. Wittenberg provided the startup with seed funding, although Millin would not to disclose the terms. In 2008 Millin founded Mediaverse, a company news media evaluation and digital reporting service for brands, and it’s since grown to count the Australian government, Telstra and AAMI as clients. It’s this knowledge of corporate brands that Millin says has the potential to provide the path to monetisation for Incogo. He says the platform will always be free, and he wouldn’t look to advertising like Facebook, rather corporates could start their own journeys, as a very particular brand of advertising. “They could create a unique journey that matches their campaign’s values,” he says. “The corporates that will win on Incogo will be the ones that create the most meaningful content.” Follow StartupSmart on Facebook, Twitter, and LinkedIn.
Microsoft officially launched two Australian data centres today as part of its Azure cloud computing platform at the start of the tech giant’s 21st TechEd Conference in Sydney. The launch comes after Azure cloud platform became the first public cloud service in Australia to pass an Australian Signals Directorate (ASD) Industry Security Registered Assessors Program (IRAP) compliance assessment. The announcement was delivered at Sydney's Hordern Pavilion by Microsoft Australia managing director Pip Marlow. It marks part of a major push into the Australian government, businesses, independent software vendors (or ISVs) and startup market by the company. The launch sees two data centres or "Azure Geos" go live in Australia, with one each located in Melbourne and Sydney, which are now available to all Australian Azure customers. The local cloud computing regions mean local Azure accounts will be hosted in a data centre within Australia, in turn allowing businesses to be able to assure customers their key data will never leave Australia. Each data centre building is roughly the same size as a rugby field and can hold two jumbo jets or 600,000 servers. In turn, both locations are large enough to allow 16 data centres to be built next to each other. In addition to local data centres, Microsoft announced it would allow businesses to get a dedicated fibre-optic link to an Azure data centre through either Equinix and Telstra through its ExpressRoute service. "Today is a historic day, a monumental day, because it's the first day Australian customers can log on and choose the Azure Australian Geo," Marlow said. "The data centre is up and running in Australia for the first time." "The time and the tools are here and now to concentrate on what it is you do everyday." Globally, Azure is signing up 10,000 new customers per week. It currently hosts 1.2 million SQLdatabases, 30 trillion objects, 350 million users, 18 billion authentications per week, over 2 million registered developers and 60% of customers are using higher level services. Executive vice president of Microsoft's cloud and services group, Scott Guthrie, predicted the cloud computing marketplace will eventually shrink to three key players in Amazon AWS, Google and Microsoft Azure. Guthrie said a key differentiating feature of Azure compared to other services is its large size (or "hyper-scale") including the ability to scale-up services based on demand. It also includes enterprise grade support, as well as hybrid cloud support, meaning on-premises servers can connect any on-premises server to the cloud. "We plan to differentiate from the other two based on our level of enterprise support," Guthrie says. "Going forward, we believe all our customers will need to take advantage of this hyper-scale activity and that elastic capability to save costs." Guthrie also highlighted the recently launched Azure Marketplace, similar to a smartphone app store, allows a range of both Linux and Windows server images to be installed on virtual machines at the click of a mouse button, along with higher-level cloud-based services. "It's a strategy where you can take the best of the Windows ecosystem and the best of the Linux ecosystem," Guthrie says. Microsoft revealed 19 regions will get local datacentres by the end of 2014, which is twice the number offered by Amazon AWS and six times the number offered by the Google Cloud. Amazon currently has one region in Australia. One company mentioned during the keynote speech was event management software developer Centium Software, a Brisbane-based company with 70 staff that helped organise the London Olympic Games. Centium chief executive Trevor Gardiner told StartupSmart it will help his Brisbane-based company of less than 70 staff to scale up for major events. "Our customers range from small event organisers right through to significant world events," Gardiner says. "Historically, the world event space has been difficult for us because of the infrastructure involved with that, and customers being unwilling to pay for that scale in the early days. "What Azure is doing for us is that it's allowing us to say to our customers that you don't need to pay for a lot of expensive infrastructure in the early days, you can scale up and have that data locally." Andrew Sadauskas attended TechEd as a guest of Microsoft. Follow StartupSmart on Facebook, Twitter, and LinkedIn.
Telstra-backed accelerator muru-D has announced the 11 startups that make up its second class, and they’re the most diverse batch of entrepreneurs co-founder Annie Parker has ever been involved with in such a program. The 11 startups come from a range of industries and include education platforms, a surfboard manufacturer that uses 3D modelling and a digital marketplace for freight transporters to sell unused capacity. The teams that make up those 11 startups include three female chief executive officers, two female chief technical officers and founders from China, Argentina, Brazil, Zimbabwe, the United States, the United Kingdom and Australia. “The diversity part of it is really unique,” Parker says. “I’ve done goodness knows how many of these, this is my 14th run through (an accelerator program), and this is very easily the most international I’ve ever had.” Lean startup methodology says it’s important for startups to aim global from day one, and Parker says Australia’s startup ecosystem needs to do that too. She’s practising what she preaches at muru-D. Of the startups that applied, more than 20% came from overseas, some from as far as Silicon Valley and India. “The message is getting out there, through our mentor network, which is global, and that bodes very well not just for our startups, but also for the health of our ecosystem,” Parker says. “Yet again, we’ve been able to uncover world class entrepreneurial talent and are delighted with the quality of applicants coming into the academy. We’ve seen just how significant this experience has been for our first round graduates and we can’t wait to get class two underway.” Muru-D takes a relatively modest 6% stake in companies in exchange for $40,000 in funding and access to its network. Parker says that, combined with the fact it’s backed by Telstra and as a consequence doesn’t have its own funding concerns, makes the program appealing to startups. The startups in muru-D’s second batch include: FanFuel; a sponsorship marketplace where brands search, measure and secure their sponsorship deal. FreightExchange; a digital marketplace for freight transporters to sell their unused capacity to businesses that need to ship goods. Wattblock; quick, customised web-based energy-saving roadmaps for residential and commercial strata buildings. Disrupt Surfing; custom surfboards made using 3D modelling. You Chews; an online platform, making it easy to find great food for meetings and events. TripALocal; an online platform that connects travellers with local hosts for authentic local experiences. Peep Digital; an intelligent, phonetic English language technology platform to help children, youths and adults struggling with English pronunciation and comprehension. VClass; the first hybrid-education platform that combines the power of internet VoIP and traditional pen and paper to create an online teaching experience like face to face. Instrument Works; developers of wireless, portable sensors and instruments to build the internet of things for research. CrowdSourceHire; a pre-hire assessments marketplace platform that crowd sources industry experts to assist with assessment of jobs for companies. SoccerBrain; making it easy for anyone to coach a team, providing tailored, interactive training sessions week-by-week for coaches and players. Follow StartupSmart on Facebook, Twitter, and LinkedIn.
ScriptRock cofounder tells entrepreneurs to “have an open mind” at startup events as Tech23 approaches10:13AM | Friday, 17 October
The cofounder of Australian IT DevOps company ScriptRock, Mike Baukes, says an open mind is the key to getting the most out of startup events such as Tech23, which can be an important networking opportunity for emerging entrepreneurs. Recently, ScriptRock successfully raised a $US8.7 million ($A9.8 million) in a series A round led by August Capital. Also participating in the round were Peter Thiel's Valar Ventures, Square Peg Capital and Scott Petry. Coming on the heels of the Tech23 being named for 2014, with the event taking place next week, Baukes told Private Media ScriptRock first attended Tech23 back in 2013. “We were invited to Tech 23, and we went there without really knowing too much about it at first. There were lots of people around – especially corporates – and many of them didn’t know about us. “So we were able to solidify our product, and we were also able to meet a couple of potential customers. We were introduced to AMP – who still use our product – and Telstra – nothing much happened with them – and it really lifted our profile. “From there, we went on a long journey using our existing customer base in Australia and then moving to the US, before launching a final version of our product in October last year.” An important step in that journey was being accepted into a startup accelerator program run by US virtualisation software company Citrix, a relationship fostered in part through Tech23. “What Tech23 did for us is facilitate a good relationship with Citrix. Before we went in we had won a Citrix Award and had been in talks about their enterprise-focused accelerator. But it was only really at the event that we were able to talk and then a few months later we ended up joining their accelerator. Baukes also has some advice for the startups at Tech23 in 2014. “From a personal development perspective, getting in front of a group of people you don’t know is one of the fastest ways to get validation for an idea,” he says. “The three keys are to identify the product, the market you are targeting and your point of differentiation. Your product or service needs to be well-defined – it needs to be something that is unique and different. It’s a point a lot of entrepreneurs and founders tend to forget. “Always go into these events open minded. Being open and candid can lead you to opportunities you didn’t expect.” Follow StartupSmart on Facebook, Twitter, and LinkedIn.
Telstra’s plans to rollout Australia’s largest Wi-Fi network over the next five years involves asking existing customers to allow part of their broadband connection to be used as hotspots. More than two million new hotspots are planned as part of the A$100 million-plus strategy to increase broadband connectivity in the places that Australians live, work and visit daily. The first 1,000-hotspots will go live before Christmas. But only two years ago Telstra shelved its plan to build a 1,000 hotspot Wi-Fi network, citing a lack of profitability and a clear customer preference for 3G connectivity. So what has changed? In contrast to the fixed line National Broadband Network (NBN) quagmire, the shifting position of Telstra with regards to Wi-Fi reflects a rapidly evolving wireless telecommunications market. The continued uptake of smart phones, tablets and other mobile devices, and the increasingly central role these devices play in social, economic and political life, is generating a phenomenal demand for wireless data. This is outpacing the development of cellular network capacity and creating congestion and reduced service quality on these networks. Telstra’s interest in developing a Wi-Fi network to offload some of this data traffic mirrors that by its international counterparts. The fundamental role that wireless communications now play in contemporary life has also translated into government interest in the provision of public Wi-Fi as civic infrastructure. Governments are well placed to do so since they control assets, such as light poles, on which the large number of low-range Wi-Fi access points can be mounted. While Telstra will make use of some of its own assets, such as public pay phone booths, it is seeking to establish hotspots in partnership with governments. This will spread the cost of provision, but Telstra are also undoubtedly keen to maintain some control over public Wi-Fi developments to make sure it reduces cellular congestion without cutting into its existing revenue streams. Telstra has also developed a business model that it believes will make sure Wi-Fi becomes a profitable revenue stream. Use of Wi-Fi hotspots by Telstra’s contracted home and business broadband customers will count towards their already monetised bandwidth allowance. Those without Telstra home broadband services will pay a fee to access the hotspots, the pricepoint of which will likely be structured to facilitate casual use but encourage regular users to consider signing up to Telstra broadband. Compelling as these reasons may be for Telstra to dip back into Wi-Fi provision, shareholders might be forgiven for worrying that the rollout of two million hotspots is an overcommitment, and one that will present similar headaches to those faced by NBN Co. But they should fear not, as Telstra will build just 8,000 of these hotspots, with the majority actually rolled out by Telstra’s customers themselves. A Fon on your Wi-Fi network A fascinating aspect of Telstra’s plan is its partnership with the European-based bandwidth sharing enterprise Fon. Telstra hopes that two million of its customers will follow the lead of Fon users around the globe and make part of the bandwidth they purchase for their home or business broadband service available to other users. So what is Fon, and are Telstra’s plans feasible? Fon was established in 2005 by Argentinian entrepreneur Martin Varsavsky. The company is headquartered in Spain, a country with a significant history of community wireless activism, such as guifi.net. Despite affectionate references to its community of “foneros”, Fon has moved some way from its cooperative roots. Backed by some heavyweight venture capitalists, Fon broke even after four years of operation. The company has been signing exclusive deals with foreign telcos like Telstra as a means of rapidly expanding its international hotspot network. The company now claims to have more than 13 million Fon spots worldwide. These will be available to Telstra customers through the deal. Fon’s bandwidth-sharing scheme is not unique, but its scale and ambition sets it apart. Commentators have been intrigued by the company’s evolving blend of user-generated and commercial elements. But its service model – which concentrates provision in private homes and residential areas – has been criticised for its variable accessibility and reliability. This concern would seem to be amplified in the large spaces of Australian cities. How many of the projected two million hotspots will be in low density neighbourhoods where Wi-Fi signals may not extend much beyond the front gate, or where there is little passing foot traffic? Will lingering outside houses to utilise the network boost commitment to the sharing economy, or arouse suspicion? Such suspicion will hardly be allayed by Fon’s unfortunate description of non-sharing network users as “aliens”. Telstra, then, will be tasked with boosting provision in commercial and tourist areas, and identifying incentives for householders to sign up and share. Who benefits from the deal? Specifically, it enables Telstra to secure a new footing in Australia’s rapidly evolving Wi-Fi scene. By asking Telstra’s customers to purchase and maintain a key component of the network infrastructure – the signal splitting modem – Telstra outsources infrastructure investment. More speculatively, the new network may generate revenue from casual users and remove data traffic from mobile networks in favour of premium voice services. Fon is aiming to build its global community but its business is currently concentrated in Europe, North-east Asia and South America. An alliance with Telstra brings Fon into the Asia-Pacific region. Partnering with major telcos may also help counter criticism of Fon’s reliability. The new hotspot network will provide a new platform for Telstra customers to access bandwidth from their home broadband plan and, depending on pricing and performance, may provide cost effective internet access for non-customers. More generally, roll-out of the network is likely to expand commercial Wi-Fi coverage in Australian cities, and may promote innovation and further technical development. Ian McShane receives funding from the Australian Research Council. Chris K Wilson and Mark A Gregory do not work for, consult to, own shares in or receive funding from any company or organisation that would benefit from this article. They also have no relevant affiliations. This article was originally published on The Conversation. Read the original article.
Businesses with digital projects have accepted that lean thinking and agile methodologies provide the best approach for their projects and ventures. Start-ups use them as a matter of necessity. Commonwealth Bank, Suncorp, Telstra, Fairfax and even the Australian government have realised the value in this new method. Lean thinking and an agile approach work by taking an iterative, evolving approach to developing an idea rather than the more traditional, stages of plan, develop and deliver as a whole. Lean and agile can shorten product development cycles, reduce the risk of misunderstanding user needs, increase the likelihood you create something that sticks and, if it doesn’t work, decrease the cost of the failed project. Lean isn’t for everyone and here are six watch outs to think about before embarking on your own lean project: 1. Lean is not the ‘no plan’ plan Far too often people say ‘we’re running agile, so we don’t write plans or requirements any more’ and the speed and low-cost benefits are used as an excuse not to invest time and money into thinking things through, opening up a project for failure. Going lean doesn’t mean doing away with planning. In one instance, we were brought onto a project with developers that had been coding away for months. No one had a list of completed or outstanding tasks. No one had documents, diagrams or mock-ups describing what needed to be done. Management was wondering why there were so many bugs and why things kept being delayed. Things turned around when we put some basic planning processes in place and some unimposing levels of documentation. Simple, but successful. You don’t need to spend months planning but you still need to plan, do requirements and think ahead to keep stakeholders on the same page. You may even choose to evolve your planning and requirements iteratively. 2. You and your stakeholders must accept things will go wrong Lean means that you would prefer to try, fail, learn, improve and repeat in small incremental and manageable investments. Failing is part of the process of understanding where things are going wrong. Demanding that things go smoothly is therefore false economy. Sure, there are mistakes that are avoidable but more often than not, if you have good team and you’re following the process correctly, the errors will be important. Errors mark a need to change approach, re-evaluate or, in extreme cases, kill the project – a much more favourable, low-risk outcome compared to an investment in something that isn’t going to work. But you need board, senior management, customers and suppliers to buy in. Google does this really well. They brand their products or features as “beta” or “labs” signalling that they’re trialling something and it may go wrong. People accept that these features may have errors because they know it’s part of the process of producing a better outcome for them. This might sound obvious, but when you’re innovating and outside your comfort zone the temptation to return to the comfortable can be strong, especially when the board or senior management is breathing down your neck demanding to know why things aren’t going smoothly. But if you succumb, you face a much greater risk: a project with the expectations of “lean” but none of the flexibility to experiment and learn. 3. Lean isn’t an excuse not to commit to things With the emphasis on trying, failing, learning and improving it is easy for teams to start avoiding any commitment but you can’t let lean or agile be a scapegoat. At the end of the day, your team is still operating in a commercial environment and results need to be delivered. 4. Accumulating technical debt Projects that use lean as an excuse to go as quickly as possible without much forethought tend to pile up what engineers call ‘technical debt’ that is an amount of future effort required to fix technical tasks that were done the quick way instead of the right way. We’ve seen entire systems are thrown away and written again because the quick and dirty approach has been used. 5. Lean doesn’t mean you can always change your mind and expect immediate results Lean can help move things along faster and can be better at dealing with change when compared to more traditional approaches. This is often how it is sold to management and stakeholders. However, lean and agile don’t mean you can repeatedly change your mind and expect immediate results. Software engineers make decisions and create logical structures based on the current requirements and future vision of the project. Some changes can easily slide inline with prior decisions and the existing logical structures but other changes may require a significant restructure which in turn results in a significant effort to make changes. 6. Knowing when to move away from lean The landscape may have changed; you may have thousands of users, new regulation to deal with or greater certainty that the project will succeed. Ignoring more “traditional” planning or risk mitigation strategies may result in missed opportunities or worse, in a damaged brand or fines. The lean methodology has already brought great rewards and better business practice to many firms, but like any other process, misunderstand it and it can go wrong. Knowing the things to look out for is half the battle. I hope these tips help in keeping your lean project on track. Scott Middleton is the CEO and founder of Terem Technologies, an Australian company that specialises in developing custom software and technology solutions for corporate innovations and high-tech ventures.
Apple has now released its iPhone 6 and 6 Plus smartphones in Australia, and the near inevitable crowds are – once again – lining up around the block. So what does the news mean for Australian software studios and app developers? Is this likely to be an “insanely great” development that will boost revenues and sales for local startups? Perhaps it will mean more headaches for developers? Or will this mean less than some would anticipate? We asked a number of developers and entrepreneurs to find out: Clipp co-founder and chairman Greg Taylor It looks like a bigger iPhone 5s – but with some amazingly beautiful and innovative new rounded edges! The best part for Clipp is Apple Pay. Apple Pay will provides our customers with another payment option to credit card and PayPal, the major benefit being customers not having to enter their credit card, overcoming any concerns of credit card security. Apple Pay will be a huge driver to mobile payment adoption, which is great for Clipp. Anytime Apple releases a new iOS, I get very nervous, particularly a major release like iOS 8. There is a strong history of many apps not working on each major release. I have already received an email from a widely used app this morning warning customers not to upgrade to iOS 8. Apple don't give developers much time at all from releasing the final version until consumers can download it. If something does not work, there is not enough time to fix it, test it and put it through the App store approval process (approximately two weeks) prior to it hitting the market. Tapit co-founder Jamie Conyngham The fact that NFC is in the iPhone 6 is a huge reversal for Apple, and we are super excited by it. As recent as 12 months ago TechCrunch reported that Apple was never going to take NFC up so we're really glad to see it's there. The fact that they have put it in for payments is amazing for the industry and we are already feeling the shock waves. People now understand that everything is going to be NFC payments in a short amount of time. We have been waiting for the banks, credit card companies and retailers to begin educating the mass market about NFC for payments for a while, as it was always going to be a big driver for the technology so it will be a great opportunity. Organisations are finally realising that NFC services are coming and they are all going to start planning for it. Unfortunately, it won't be available for other great NFC applications like tag reading/pairing and apps for about 12 months. In the meantime, Tapit will continue working with open NFC partners like Samsung to improve and innovate on new ways to use NFC, as well as executing bigger information and advertising projects. Tapit will also continue using beacons and QR for Apple users in the meantime as well. Outware Mobile director Danny Gorog “iPhone 6 and iOS 8 are an incredible opportunity for Outware. Many of our clients including ANZ, Telstra, AFL and Coles are excited about the new larger displays and the added flexibility that iOS 8 provides. We’re already well underway to ensure our clients apps are fully iOS 8 and iPhone 6 compliant. As specialists in large scale finance and insurance apps, we believe the new NFC capabilities in iPhone 6 will change the mobile payment landscape and the way Australians want to pay and shop. Australia has one of the highest penetration rates of tap and go terminals in the world so we are a perfect fit for this technology.” Squixa chief executive Stewart McGrath Devices like the iPhone 6 are a response to the consumer demand for easier access to more content. In the last four years, the average webpage size has nearly tripled while average connection "speeds" have only doubled. This is putting great pressure on website owners to utilise better ways of delivering increased content to these devices but still maintain a quality user experience. The challenge to keep pace and make use of the attributes of these devices is now being pushed back onto website owners. Higher resolution screens mean images need to be sharper and improved processing capacity means laggy web content delivery is more noticeable for a user. We expect the consumer demand for content to grow at an exponential rate and platforms like the "six" are the hardware manufacturers' answer. The pressure is on website owners now for sure. The ones who are responding are setting themselves apart from their competition. Will Heine, Wicked WItch Software Again the new iPhone launch has been very successful, so there will be more iPhones in the marketplace and new consumers that can enjoy our games like Catapult King. As well as more users, the new devices are again more powerful, which allows more advanced features of our game engine technology to run on mobile and tablet devices, resulting in improved graphical and gameplay quality in all of our upcoming titles. Follow StartupSmart on Facebook, Twitter, and LinkedIn.
The Australian startup scene is booming with large numbers of startups being launched every day, but we still lack experienced founders and teams, according to a number of Australian investors. Application numbers are more than adequate across a number of Australian startup accelerator and incubator programs. The Telstra-backed Muru-D program received 200 applications for its initial batch of startups while AngelCube received around 100 applications for this year’s intake, meanwhile BlueChilli receives 200 online applications a month. AngelCube founder Adrian Stone says the incubator tried to the address the problem by tightening its requirements this year, which resulted in around 50 fewer applications when compared to last and an increase in quality, but it was still difficult to find seven or eight startups to fill the program. The Sydney Seed Fund, which aims to invest in 20 startups over three years, had over 200 applications in its first year, but only offered investment to five. Sydney Seed Fund partner Benjamin Chong says it isn’t so much a lack of quality ideas that’s a problem, but a lack of quality teams. “From what we’ve experienced the quality is very variable,” Chong says. “We’ve had a bunch of people applying for money and all they have is an idea, others have a team, but maybe they haven’t had revenue, but they do have something to show for it. “We’re very interested in backing teams of people that are demonstrating a capability to get things done. They might have done something before, but also if they have a strong co-founding team with complementary skills.” The Sydney Seed Fund received a broad range of applications, many of which weren’t even tech startups, one team wanted to build a skyscraper in Pakistan. “For some founders there’s a bit of a spray-and-pray type approach,” Chong says. “Just go up and hit a lot of people in the hope that it will bear fruit.” Chong wasn’t able to say for sure if the three startups Sydney Seed Fund invested in, and the two more it’s negotiating with, were the only startups they gave an offer sheet. Stone agrees it’s a lack of quality teams, and more specifically technical co-founders that is hurting the standard of Australian startups, in addition to a general lack of experience that comes from the ecosystem having a relatively small amount of successful startups. “Maybe we haven’t got enough people that have had a go, if you haven’t started and failed you’re probably not as good a founder as you can be,” Stone says. “And we’ve got a weakness when it comes to tech co-founders.
Tasmania’s startup ecosystem is starting to attract the attention of mainland accelerator programs. In the past month the island state has been visited by the Telstra-backed Muru-D accelerator program, and BlueChilli founder and chief executive officer Sebastien Eckersley-Maslin. Muru-D held two events, one in Launceston and one in Hobart, as part of its search for its next batch of startups, while Eckersley-Maslin was in Hobart speaking at the Tasmanian ICT Conference. While it might not seem like much to those in Melbourne or Sydney, it’s an important step for a state that wants to become competitive with other regional startup hubs, as Startup Tasmania’s James Riggall explains. “Tasmania itself is still getting started for sure, there’s not much of an established startup ecosystem here,” he says. “Instead there are a number of groups working towards trying to make Tasmania competitive as a regional startup ecosystem. It’s really exciting for us to have BlueChilli’s Seb Eckersley-Maslin and Muru-D in the state within two weeks of each other. It’s a really important step to help build awareness. “The vision is to make Tasmania a place where accelerators are interested in recruiting, and in the long term to have our own home-grown accelerator programs.” Both of Muru-D’s events in the state where well attended, Riggall says, with roughly 50 entrepreneurs taking part. They provided a glimpse of the sort of startups that could call Tasmania home. “There’s a small number of startups around and we’re already starting to see some niches developing,” he says. “Looking at the people coming along to the Muru-D event and pitching on the night, there were some startups in the agricultural sector and there’s also a little bit of boutique electronics manufacturing.” Muru-D co-founder Annie Parker, who was in Tasmania representing Muru-D, says there’s a real opportunity for Tasmanian startups to be taking on the agricultural and creative arts spaces. “That’s something that Tassie specialises in really well, and will give them a fighting chance to stay in Tasmania to build it,” she says. “If you’re a B2B (business-to-business) or a straight to consumer product it’s going to be difficult to build that critical mass, that wealth of customers or small-to-medium businesses. “If I was in the agricultural tech space, or creative arts, I would find Tassie a fantastic space, with relatively low cost access to potential customers.” The Tasmanian state government has pledged funding for a “go-to-market incubator” to support Tasmanian startups to commercialise their technology. However, what exactly that incubator might entail is still unknown. “The government is doing what it can for startups, but there really needs to be the community groundswell, the energy needs to come from the community,” Riggall says.
In his independent audit of the public policy process behind the national broadband network, former Telstra director Bill Scales suggests there was never an internal debate about different technology options for the NBN. He also argues the panel of experts (of which I was a member) assisting the Rudd government did not properly test advice from the Australian Competition and Consumer Commission (ACCC) about the upgradeability of a Fibre-to-the-Node (FTTN) network to a Fibre-to-the-Premises (FTTP) network, and that the panel inappropriately relied heavily on this advice in making recommendations to the government about the development of the NBN. In my view, all of these assertions are incorrect, and this taints the credibility of the audit. In reality, the panel spent many hours discussing and analysing the technology options and the upgrade paths, including those set out in the various proposals submitted by companies in response to the government’s Request for Proposals (RFP). The panel also independently evaluated other models for upgrades. The panel, which included telecommunications experts from both industry and academia, carefully scrutinised all advice it received, and drew heavily on its combined experience. Some advice was very helpful and some was considered to be of little value. When the ACCC tabled its advice regarding the costs of upgrading FTTN to FTTP, it came as no surprise to the expert panel that the ACCC had a view that was similar to what the panel had already concluded. Simply put the panel did not rely heavily on the ACCC advice. A fundamental flaw with the audit process was that Scales, by his own admission, did not have access to key information, with limited access to documents associated with the panel of experts’ activities. Members of the panel, constrained by strict confidentiality rules, were also unable to share any further information with Scales about the details of panel discussions and deliberations. Without divulging any details, I was able to explain the situation regarding the ACCC to Bill Scales when he interviewed me for his report, but it seems he did not put much weight on my comments. Scales seems to have missed the point that upgradeability was an important issue from the outset of the RFP process. The RFP for NBN Mark I included many requests for information from proponents about how they proposed to future-poof their networks by providing upgrade paths from FTTN to FTTP. It even suggested a 2020 time frame for this upgrade. The consideration of upgradeability and its costs was one of a number of factors that fed into the “value for money” criterion for evaluating the proposals. In one part of his report, Scales suggests the ACCC ignored a key report by Analysys Mason, which shows that the cost of FTTP is around five times the cost of FTTN. But a little bit of information can be dangerous. What Scales seems to have missed here is that the Analysys Mason report was based on the British broadband landscape, and assumed that the copper network required for a FTTN rollout was already owned by the operator rolling out the network. When parts of the copper network and/or the associated ducts might need to be purchased or leased, as required for Australia’s NBN, the calculus changes completely. Story continues on page 2. Please click below. The Coalition’s NBN is proving expensive Under the previous Labor government, NBN Co negotiated a deal with Telstra to provide access to Telstra’s ducts and pits, enabling fibre to be laid with fewer trenches needing to be dug. The cost to NBN Co of this access was A$11 billion, and added a hefty overhead to the total cost of the NBN. Even if we make the optimistic assumption that NBN Co will not have to pay any more than this $11 billion to access and maintain Telstra’s copper wires inside those ducts, the Coalition’s (predominantly FTTN) NBN will suffer the same $11 billion overhead. Consequently, the factor of five difference between the cost of FTTP and FTTN given in the Analysys Mason report drops to something around two or three. By world standards, the Coalition’s NBN is turning out to be very expensive. What has Australia lost in the transition from Labor’s FTTP NBN to the Coalition’s multi-technology mix, with a large proportion of FTTP? In my view, a big danger is that future upgrades from FTTN to FTTP will be slow and that Australia will continue to lag behind the rest of the developed world in terms of broadband access. With such a huge investment sunk in the Coalition’s multi-technology mix NBN, there is going to be very little appetite in government to fund future expensive upgrades to FTTP. If the government sells the NBN to a commercial monopoly operator, there could be even less incentive for upgrades to FTTP. There is a real danger that Australia will remain trapped in a broadband backwater. Rod Tucker receives funding from the ARC and has received funding and in-kind support from a number of telecommunications companies. He served on the Rudd Governent's Panel of Experts that assisted with the development of the NBN. This article was originally published on The Conversation. Read the original article.
Go Girl Go for IT, a free upcoming event for high school girls from years 8 to 11 organised by the Victorian ICT for Women Network, aims to encourage girls to consider a career in the tech industry. This year’s event, to be held at Deakin University’s Burwood campus, is set to attract 1500 girls from 54 schools across the state, including some from as far away as the regional city of Wodonga. Go Girl Go for IT communications team lead Sara Ogston told StartupSmart the 2014 theme is about changing perceptions about a career in IT. “The big theme for the event is ‘IT is it’, it’s about talking through the opportunities in the sector,” Ogston says. “It’s about getting away from the stigma around IT and making sure girls understand IT is no longer just about sitting at a computer all day or plugging in cables in a server room – it can be a really creative career. “IT and ICT can be intimidating. The big thing is we want to open up these girls’ eyes to how there’s also a lot of opportunities in it.” Go Girl Go for IT co-director and the head of cloud practice service optimisation at Telstra, Irene Evgeniadis, told StartupSmart the event is about showcasing the variety and diverse opportunities available to women who want to study or work in IT. “We do this by having industry speakers and sponsors (corporate, educational and government) who give the girls with a glimpse into the excitement, opportunities and career satisfaction that IT can provide,” Evgeniadis says. “Our past surveys have clearly shown us a rise in the number of girls wanting to consider a career in IT, after attending our Go Girl, Go for IT event.” The event begins at 9.30am with a keynote speech by 2014 patron and Twitter Australia managing director Karen Stocks. The students will then break up into five streams, where they will hear from a range of leading women from the tech industry. Speakers include NAB senior digital strategist Tammy Barlow, York Butter Factory’s Richenda Vermeulen, Telstra’s Anne Libel, ANZ’s Krish Beresford, and Krishna Nair from Deloitte, among many others. Following the group sessions, a trade fair will allow the students to ask questions. Meanwhile, a Facebook page has also been created allowing the conversations to continue online. Gender inequality has long been an issue for the tech sector, with the number of young women choosing to study tech-related subjects at a tertiary level declining over recent years. It is an issue that has come under increasing scrutiny in recent months, with a string of tech giants including Google and LinkedIn admitting they have serious problems in terms of gender equality. In the case of Google, just 30% of its workforce are women.
Google’s main developer conference for the year – Google I/O – has kicked off in California. For weeks ahead of time, speculation about Android Wear smartwatches, new Google Nexus devices and a possible update to its Android or Chrome OS operating systems. So Google raised a few eyebrows when, ahead of the conference, it announced it’s shilling out $US555 million (approximately A$591 million) for a company called Dropcam. The newly acquired business is being combined with Nest, the smart smoke detector and thermostat company Google purchased in January for $US3.2 billion. The company makes small security cameras with built-in microphones and speakers that connect to the internet over Wi-Fi and stream encrypted video and video to the cloud. Once the camera is set up, the user can use the company’s iOS, Android or web app to stream video and video from their camera, or speak through the camera’s built-in speaker, allowing for two-way communications. The company also offers the option of recording up 30 days of continuous security video and share favourite clips with family and friends. The deal sparked a lot of discussion and speculation. Was Google interested in monitoring people’s houses, shops and businesses to glean even more data for its search rankings? No sooner had the ink dried on the contract when, in Australia, Telstra announced a security deal of its own. Through a joint venture with firm SNP Security, called TelstraSNP Monitoring, the telecommunications giant will offer will offer monitored security for business and residential customers. While SNP will continue offering guard and petrol services, its video surveillance and security alarm arm will be swallowed by the new venture. A secure solution Now, certainly both Google and Telstra have long been interested in security. But it’s mostly been of the cybersecurity and network security variety. So why the sudden interest in catching real-life crooks? The reason comes down to two topics I’ve discussed a fair bit in recent weeks: Cloud computing and the internet of things. While people still often think about the “internet of things” as connecting fridges to the internet. However, a real-world example of a situation where there are practical benefits in hooking up a device to the internet is with security cameras. As I’ve discussed previously, IoT is an evolutionary trend, rather than a revolutionary one. In this case, connecting security cameras and alarms to the cloud allows for easy off-site storage of footage (with a cloud provider), as well as the ability to monitor footage in real time from almost any device anywhere in the world. In many cases, internet-connected cameras will allow for more flexibility than if all the cameras were physically wired back to a control room or stored at the original location on video tape. (That being said, you can still do both of those things if you stream the footage over the internet). For reasons I’ve previously discussed, the cost of cloud-based services has fallen through the floor in recent times. Today's announcement of Google Drive for business, with unlimited cloud-based storage for $10 per user per month, is a perfect example. The cloud adding value With the cost of providing the underlying cloud computing and storage services falling, the real business opportunity for cloud providers such as Google and Telstra is in providing value added services over the top. Centralised video camera monitoring and security footage storage over the cloud is one example of where cloud service providers like Google and Telstra can add value for customers. And if you combine security camera vision in a cloud-based with real-time information from other devices, you begin to build a powerful platform that can be used to remotely monitor facilities and equipment, without physically needing to have staff on the ground. What it means for you So what does all this mean for your business? Well, in many sectors – such as retail or property management – security cameras have long been a fact of business life. A cloud-based, IoT solution could be a far more effective yet cost-effective alternative to existing video surveillance systems. And if loss prevention is part of your business, that’s certainly worth looking into. This article first appeared on Smart Company.
NBN Co and Telstra have reached agreement on an expanded program to plan, design and construct fibre-to-the-node (FTTN) high-speed broadband to about 200,000 homes and businesses. The agreement marks a major step forward in the Government’s ongoing reform of the National Broadband Network. The reforms currently underway at NBN Co will ensure the network is delivered sooner, at less cost to taxpayers, and more affordably for consumers. The number of premises to be covered by the project is roughly equivalent to the 206,000 homes and businesses passed by the NBN fibre-to-the-premises (FTTP) rollout in established neighbourhoods over the entire period the previous Labor government was in power. NBN Co will continue to deploy its FTTP, fixed wireless and permanent satellite networks during the period of the FTTN trial deployment. NBN Co’s contract with Telstra will ensure initial rollout of FTTN focuses on areas categorised as ‘underserved’ in the Government’s MyBroadband broadband quality study. NBN Co estimates areas underserved with broadband account for around 28 per cent of the premises in the rollout regions. ‘This announcement demonstrates how FTTN can help to bring broadband more quickly to many regional areas than would have occurred under Labor’s plan—and that is good news because upgraded broadband can help regional communities capture improved economic, educational and social opportunities,’ said Paul Fletcher, Parliamentary Secretary to the Minister for Communications. Rollout regions included in the trial project include: Belmont, New South Wales Bribie Island, Queensland Boolaroo, New South Wales Gorokan, New South Wales Morisset, New South Wales Hamilton, New South Wales Bundaberg, Queensland Caboolture, Queensland Gympie, Queensland Warner, Queensland In addition, the NBN will expand its current FTTN pilot in Umina on the New South Wales Central Coast. The agreement for a thousand-node FTTN trial represents an interim step while NBN Co, Telstra and the Government finalise changes to the existing Definitive Agreements covering Telstra’s participation in the NBN. It is anticipated that these changes will include arrangements for the NBN Co to gain access to Telstra’s existing local access network. In parallel NBN Co will work closely with telecommunications retail service providers to finalise the design of its FTTN products and provide services to end-users. Early line tests using Very-high-bitrate Digital Subscriber Line technology (VDSL) indicate that download data rates of up to 100 megabits per second and upload data rates of up to 40 megabits per second are achievable over copper lengths of a hundred metres. The top available downloads speeds are approximately 17 times faster than current average fixed line broadband connections to Australian households. These speeds allow ten high definition television shows to be streamed to a single household or business concurrently. A three minute YouTube video will be able to be uploaded in as little as 42 seconds, compared to up to 20 minutes on today’s average ADSL connections. Since the September 2013 election the number of households and businesses with active service over the FTTP network has tripled from 48,000 to 146,000. In the same period the number of premises passed by the FTTP network has almost doubled to 482,000. Telstra, the NBN Co and the Government are well advanced in negotiating changes to the Definitive Agreements. These negotiations have not yet concluded but are progressing well. The limited deployment of FTTN is an important step in allowing NBN Co to determine how a multi-technology mix rollout will change its construction and service provisioning operations.
South Australians will no longer have to search for a hot spot or a café with Wi-Fi in the Adelaide CBD, as the city today switches on free wireless network access throughout central Adelaide. While Telstra is rolling out its Wi-Fi hotspots across Australia, national broadband provider Internode, a subsidiary of iiNet, has got a jump on the South Australian Wi-Fi game with the creation of its AdelaideFree wireless network. Launched today in partnership with the South Australian government and Adelaide City Council, Internode says AdelaideFree’s 300 wireless access points across the city will saturate almost the entire CBD, offering free Wi-Fi to more than 30,000 people. Internode says the network will provide blanket coverage between North Terrace and Wakefield Street/Grote Street and broad access areas in the south city, North Adelaide and the most heavily frequented parts of the Adelaide parklands. “Already people in Adelaide are embracing this new Wi-Fi capacity. Internode has recorded about 50 per cent increase in use of the Wi-Fi network since announcing AdelaideFree’s deployment last year,” said Internode chief business officer Greg Bader. AdelaideFree is installed at external locations throughout the CBD including the Festival Centre, the SA Museum, the State Library, the National Wine Centre and the corporate function centre located in the historic Adelaide Stock Exchange building. The telco says the network is one of the largest CBD-wide outdoor wireless networks in the world and was well tested during Adelaide’s “Mad March” festival season.
Yellow Pages directories have been appearing on doorsteps across Australia in recent weeks. As often as not, they go straight into the recycling bin. In the world of the internet and e-commerce, the very notion of a book the size of two bricks being the source of valuable purchasing information seems plain silly. Once directories like the Yellow Pages served a valuable need in most developed economies. They provided basic and inexpensive local advertising, especially for small businesses. As the internet emerged as the preferred means of accessing such information, the potential for directory owners like Telstra to translate directory information into a valuable online business opportunity seemed promising. As is often the case in the unpredictable world of the internet, it was not quite so simple. In January 2014, Telstra sold a 70% share of Sensis, its directories subsidiary, to a US hedge fund for A$454 million, only 2.4 times projected 2014 earnings. This is quite a turnaround from the A$12 billion value suggested to Telstra’s Board in 2005. At the time, Telstra’s chief executive Sol Trujillo declined to spin-off the business, suggesting Sensis (Telstra’s directory business) would be “bigger than Google”. Google Schmoogle? Indeed, with characteristic ebullience, Trujillo commented in November 2005, “Google Schmoogle”. Contrary to that prediction of sorts, since 2005 Google’s market capitalisation has increased tenfold, to more than half a trillion dollars. Among Trujillo’s many strategic mistakes, his misunderstanding of the relative potential values of Google and Sensis probably takes the cake. It’s fair to say, however, that Trujillo was not alone in misunderstanding the radical changes in the economics of information over the last decade. These changes have completely upturned the value of directories businesses globally. The investors who bought Telecom New Zealand’s directories business in 2007 for $2.1 billion (at an earnings multiple of 13.6 times) at the height of the private equity bubble have done most of their dough. Knowledge is Power (and Money) The 2.4 earnings multiple on the recent Telstra sale suggests two things - that the business is still profitable, but that profits are expected to rapidly erode. How can we explain this sudden, anticipated and precipitous decline in the value of information available through directories like the Yellow Pages? The economics of information is changing rapidly. Economists George Akerlof, Michael Spence and Joseph Stiglitz won the 2001 Nobel Prize for economics for their seminal work on the economics of information, especially information assymetries between buyers and sellers. Most famously among the suite of work done by these economists was Akerlof’s 1970 paper “The Market for Lemons”. Like all great academic work, its beauty lay in its simplicity. In essence, buyers and sellers have “asymmetric” information. In the example in his paper, the seller of a used car knows if it is a “lemon”, though the buyer rarely does. A consequence of Akerlof’s Lemons paper for sellers is that it made sense for them to signal to the market aspects of the quality of their products – by suggesting that they are selling “cherries” (great used cars) and not “lemons” (cars on their last legs). One simple way to do this was through advertising. This was especially useful where the buyer’s knowledge of the seller was limited, as would often be the case for the buyers from small businesses who advertise in directories like the Yellow Pages. Better information, less asymmetry The steep decline in the generic, supplier-provided data that is the essence of Yellow Pages has been driven by a set of related phenomena. First, sites like TripAdvisor have emerged to provide detailed and generally reliable information on services including hotels, tourist attractions, restaurants and the like. Importantly for Yellow Pages, sites such as these are becoming the first place for buyers to visit. As the quantity of collected reviews increase, the value of such sites increases greatly, as they provide a level of information on sellers that static directories cannot match. Second, the costs of “searching” for information is in steep and terminal decline. Once, buying a set of golf clubs for the best price, for example, required a multitude of phone calls or, worse still, visits to stores with pushy salespeople. Now, finding the best price in the market is a few keystrokes away through Google. Too late for Sensis? This begs the question – can the Yellow Pages reinvent itself to be a new portal for information on sellers that will be valuable for buyers, and thus continue to attract advertisers? The answer is probably not. As a late mover into such information provision, it will have an almost insurmountable challenge to build an equivalent body of information in comparison to its competitors. More so, it will be a generalist in an industry full of specialists, the last site visited by buyers and thus the least valuable site for sellers to direct their advertising dollars to. This makes the 2.4 times 2014 earnings paid in January for Sensis seem about right. Such a multiple suggests that this year’s Yellow Pages might be the last one to lob onto Australia’s front porches. If this is bad news for Sensis, it is good news for the millions of trees that will be saved! By John Rice and Nigel Martin. Rice is an Associate Professor in Strategic Management at Griffith University. Martin is a lecturer at the College of Business and Economics at Australian National University. Rice is a member of the National Tertiary Education Union and the Australian Labor Party. Martin does not work for, consult to, own shares in or receive funding from any company or organisation that would benefit from this article, and has no relevant affiliations. This article was originally published on The Conversation. Read the original article.
Small businesses will be able to use Telstra’s $100 million national public Wi-Fi network to provide free internet to their customers. Telstra is asking its small business customers if they will turn their service into a Telstra Wi-Fi hotspot and to be promoted by Telstra as a destination to connect. Alan Crouch, director of connected home at Telstra, told SmartCompany it was a great offer to small businesses such as cafes, shops and doctors surgeries. “The whole idea is to be able to provide a place for people to connect,” says Crouch. “When they’re out and about getting a coffee or when they’re at the doctor, they’ll see the Telstra Wi-Fi there and it gives them a chance to have multiple choices on how they connect.” Telstra broadband customers will be able to install new gateways allowing them to share a portion of their usage quota each month in exchange for free access to the network. Crouch says the details of commercial negotiations and costs for business haven’t yet been decided. “It’s really a ‘better together’ scenario, there’s mutual benefits,” says Crouch. “We’re providing a service to people that’s going to make them want to come visit shops.” He says the telco has had considerable interest in the Wi-Fi hotspots in the past 24 hours since it announced its new network. “We’re asking all of Telstra’s small business customers to start this conversation with us.” Small business owner and Telstra customer Salvatore Malatesta, the man behind Melbourne’s popular St Ali cafes, says he would welcome the Wi-Fi hotspot in his cafes. But he says the business already spends a considerable amount on corporate phone plans and would not want to pay any extra fees for the service. “If they want ambassadorial clients to embrace their technology and give them lots of love on social media platforms and that sort of thing, then it should be free,” says Malatesta. Interested business can register their interest here. This article first appeared on SmartCompany.