Broadband providers bashing on doors

High speed internet service providers are threatening legal action to force apartment block owners across Sydney to allow them to install their equipment and cable their buildings.

Using the laws established to help the spread of mobile phone towers, hybrid copper, fibre and satellite  internet infrastructure providers are targeting high-rise buildings, employing a mixture of persuasion and implied threats of legal action.

“Basically, they are writing to us telling us they are coming and ordering us to give them access to the roofs, telecommunications risers and distribution boards,” says the building manager of  several large Sydney unit blocks.

“By law they only need to give us two days notice and all we can do is send them a lawyer’s letter to hold them off until we work out who has the best service for our residents,” he adds. “Admittedly some of them are providing top-of-the-line high speed broadband connection with additional satellite TV services.  Others are just offering the building manager a free broadband connection and that’s it.”

Under the Telecommunications Act, service providers can issue a Land Access Activity Notice which allows them to inspect any land to see if it’s suitable for their purposes and then, if they wish, install “low-impact facilities” which is defined as anything smaller than a 6.8 metre mast or dish. The building’s owners can’t refuse and planning permission is not required.

One company, FirstPath assures building managers and Owners Corporations that they are only seeking to inspect the building for suitability.  However, a pamphlet makes it clear that the buildings’ owners have little choice about that or, indeed, what happens next.

“Ideally we would like to work with you however, the Act confers on carriers certain powers and responsibilities relating to the access of land and buildings for the purpose of inspecting, installing and maintaining telecommunications facilities. This entitles a carrier [FirstPath] to access any land to determine if it is suitable for its [FirstPath’s] purpose.”

The pamphlet goes on to say: “The purpose may include: install, maintain and improve building connection equipment and or to improve the reliability, performance or maintenance of the network,” adding “if you do not agree to access we will serve a Land Access Activity Notice.”

A rival company takes a less direct approach. OPENetworks has written to building managers explaining that the strata approval system is time-consuming and unreliable in terms of outcomes, so it is easier for them to issue an LAAN to make everything faster and easier.

“The Strata Schemes Management Act … requires a prolonged and possibly costly action on behalf of the Owners Corporation and then may not be able to be done,” says Business Development Manager Lester Radford in a letter to the building manager of a Chatswood tower block.

Though couched in different terms the message from both providers is clear – we are coming whether you like it or not.

What’s at stake is the lucrative and growing market of apartment residents who want fast and cheap internet services, especially now that doubts are growing over the National Broadband Network, not least that its focus is on rural rather than urban customers.

Hybrid internet wholesalers are offering speeds of up to 100 Megabits per second – a typical ADSL2 (copper line) speed is between 10 and 20 MBps – which they wholesale to internet service providers and it seems the companies are involved in a goldrush to grab the best buildings with the greatest potential.

OPENetworks was recently reported to have installed services to 1200 apartments in Sydney and Melbourne and were at various stages of taking their services to 8000 units in 60 apartment blocks. TPG Telecom is reportedly planning to install fibre to buildings housing half a million apartments in the five mainland state capitals.

But there’s still a little wriggle room for buildings that want to negotiate who provides a service to their building and under what terms.

“While carriers might want to use powers under the Telecommunications Act to install their equipment, my recollection is that the Act doesn’t go so far as allowing them to use the OC’s electricity service,” says Richard Gration, Owners Corporation Network committee member and former chairman of the Horizon building in Sydney.  “The carrier would therefore have to make arrangements to install their own separately metered power for their equipment.

“If you make it clear that they are not permitted to freeload off the OC’s electricity account and that they will have to pay for their own power connection and separate metering, that may discourage them a little from using this rather forceful approach to installation of telecommunications infrastructure.

You can’t stop the providers coming in, but it may be worth slowing them down.

“The law doesn’t allow you to favour one installer over another and theoretically all the providers can be installed in the one building,” says the building manager, “But the fact is that once one provider is there, there’s not much point in the others coming in.

“That’s where smart Owners Corporations can get an advantage.  You can’t stop them coming but you can find out who’s offering the best deal and quietly give them the inside running.”