CRM software runs my life

Category: Australia Page 1 of 4

Leading Product through COVID-19

Last week Liam invited me to participate in a webinar titled “Pivoting Product and Product teams through a Crisis”. It was a real honour to be invited, as the panel was made up of a number of great product leaders from Sydney. Mable in particular has seen some big swings in supply and demand, as well as winning a very exciting Department of Health contract.

If you’d like to view the webinar, please see this YouTube video:

Pivoting Product and Product teams through a Crisis

NBN Fibre vs MTM comparison

Many people feel that a National Broadband Network is a recent, poorly thought through and unnecessary initiative. The reality is that the Australian Government has had a litany of national broadband plans over the last 12 years. Failed tenders occurred in 2003 (Government – Liberal), 2005 (Private – Telstra), 2006 (Private Optus/Elders + Government – Liberal), 2007 (Government – Labor) before finally in 2009 Labor founded NBNCo to build a Fibre to the Premises (FTTP) network. The demand and planning has evolved exponentially over this time period.

The question therefore is (and has been for 12 years) not if we need a National Broadband Network, but which method is the best? Side by side, you can see that the original NBN plan went through a number of revisions over the years, and also see it presented alongside the new MTM plan produced by the current Australian Government:

2012-15 2013-16 (v12) 2013-16 (v13)(Last NBN revision) 2014-17(First MTM plan, post 2013 election)
Revenues to CY2021 AU$23.1b AU$21.7b AU$19.4b AU$18b
Total capital expenditure AU$37.4b AU$37.4b AU$37.4b AU$30b
Total premises covered 13.176m 13.176m 13.274m Not specified
Total premises activated 8.286m 8.757m 8.788m Not specified
Opex to CY2021 AU$26.4b AU$26.4b AU$26.9b AU$27b
Funding: Government equity AU$30.4b AU$30.4b AU$30.4b AU$29.5b
Funding: Debt AU$13.7b AU$15.2b AU$13.8b AU$12b
IRR 7.1% 7.1% 7.1% 3.2%-5.4%
Rollout method FttP Build drop FttP (NBN 2.0) Build drop FttP (NBN 2.1) MTM
Total premises passed by end FY2015 3.664m 3.202m 2.507m 1.093m
Average Download Speed 100Mbps 100Mbps 100Mbps 46Mbps

From ZDNet

Overall the maths and tradeoff is fairly clear, a 20% reduction in cost (capex reduction of $7.4b) results in a 54% reduction in speed. Of course given the current economic pressures this can be seen as a necessary evil, despite the significant deterioration in cost benefit.

There are two hidden factors that make this seemingly simple tradeoff more painful:

 

1) Copper produces incredible variations in connection speed

 

MTM speed estimates for Woy Woy, NSW

MTM speed estimates for Woy Woy, NSW

Full transparency, I work for YouTube. We are a service that is greatly affected by variable connection speeds, but we are not alone: Netflix, Pandora, Spotify, Quickflix etc. are all impacted. When someone like Netflix or Apple looks to bring a service to Australia, consistency of service delivery is an absolute requirement. It took Netflix 7 years before they would launch in Australia. If Netflix can’t justify launching in Australia, how can a start-up every achieve scale within the already small pool of Australian connections? It’s not possible, and moving overseas quickly becomes the obvious solution. To the right is a graph of what connection speeds will look like in one of the cherry picked MTM trial sites in Woy Woy, NSW. This doesn’t even take into account variations in speed due to weather, something copper is prone to. The fibre NBN on the other hand delivers almost uniform consistency across the country at all times.

 

2) Copper costs $1b a year to maintain (as of 2014, the government’s problem)

 

Copper lines are a very expensive asset that is rapidly declining in value. In the original NBN deal the copper was not included, instead NBN only got access to ducts and would pay Telstra as lines were decommissioned – a way to link pit remediation to Telstra’s financial incentives. Under the new MTM deal with Telstra signed in December 2014 there was almost no change, except that the copper was given by Telstra to the Government for $0 extra. Of course the devil in the detail is that the copper network currently comes with a $1b annual maintenance bill. If the government now needs to take over this maintenance bill, and rework the entire Telstra HFC network, who could they turn to for help? Of course Telstra will win the majority of this contract, they know the infrastructure better than anyone and are already winning 50% of the new contracts the NBN is handing out post-deal. That’s why I bought shares in Telstra.

 

So in conclusion, what’s the real trade-off?

 

The $7.4b capex reduction from the MTM to 2021 is neatly replaced by 7 years worth of copper maintenance at $1b a year. Even if it’s slightly less then $1b, the overall benefit at 2021 will be less than $1b in savings for a 54% decline in speed.

This also completely ignores the facts that the NBN fibre network will have lower ongoing maintenance costs, power costs, has near complete speed uniformity across the network, delivers a 2%+ higher IRR for the government and will be upgraded to 10x (1000Mbps) speed for absolute minimum cost.

Unfortunately in modern politics is seems anything beyond a 4 year term is irrelevant to the debate, and instead the focus is on what can be delivered as cheaply as possible before the next election on or before Jan 2017. That’s about the only time in history where the MTM will look even marginally better.

Map My Summer Australia

The culmination and curation of the Map My Summer project, the “We Were Here” video by Screen Australia, has premiered in Sydney. Way to make me nostalgic while I am overseas. Getting my name in the credits at the end is pretty cool though, I think this is a first for me!

australian youtube logo doodle

Happy Australia Day!

Happy Australia Day 2011 to all the aussies who read my blog! Ernesto, 3DM and I worked hard to deliver the first YouTube custom logo for Australia ever and a custom video mapping gadget! The basic premise is that Australians can upload videos to YouTube and plot them on a map. This map then visually “fills in” to create essentially remap Australia in terms of summer memories. I am really looking forward to seeing how much momentum we can build off this one and it is great showcase for local creatives.

australian youtube logo doodle

Custom YouTube logo and youtube.com/MapMySummer gadget

Google also put up a custom doodle for today, which indirectly drives through to the YouTube channel too:

google doodle for australia day 2011

Google doodle for Australia Day 2011

Is it weird that I get a buzz from having input into the creation of these programs that re-craft some of the most recognised brands in the world? Must be my inner marketing geek showing through…

Save your tax dollars – cut your copper now!

As part of the Heads of Agreement that Telstra has signed with NBNCo, Telstra is being paid $11 billion taxpayer dollars. This amount is effectively the sum value of each and every customer they migrate off copper. As John Stanhope (Telstra CFO) states:

So as the customer is switched off and goes across to (NBNCo) fibre, we get a payment.

Copper lines are already being dropped at a massive 8% pa, but you can help accelerate this drop and save your taxpayer dollars as well as your own line rental costs in the process. Moving to VoIP over fibre, merging multiple lines into VoIP services and migrating to mobile phones will all help you save your hard earned tax dollars.

Admonsters Sydney Members Dinner

Admonsters held their first event in Australia this week, with a members dinner at the Waterfront restaurant in Sydney. The 3 course meal was very generously provided by aiMatch on a perfect summer’s night right next to the harbour.

The event was attended by around 25 people, which made for an intimate yet comprehensive representation of the major Australian advertising operations teams. Ninemsn, Carsales, REA Group, APN, CBS InteractiveYouTube, Google and number of niche publishers were represented. It was amazing how small the industry is (I had worked with at least 5 others previously) and yet how diverse our backgrounds were. There was some reflection on this topic, in particular what qualifications you need to get into Ad Operations, and therefore what you look for in new hires.

Other issues that went around the table included the continuing friction between digital and traditional media (both internally and in the market), the National Broadband Network and how it will accelerate this structural change and the amount of hand-holding that clients are still requiring.

Overall it was a great night which really helped build relationships across what is a very fragmented online media landscape in Australia. The discussion ended with a hope that there will be a larger Admonsters conference event in the APAC region next year!

Movember 2010

30 days worth of growth...

This is the second year that I have participated in Movember, a great initiative to raise money for men’s health. Google Australia put together a strong team to compete, so I had no excuse not to join the cause. If you don’t know what Movember is, here is the summary from their website:

Each year Movember is responsible for the sprouting of moustaches on thousands of men’s faces in Australia and around the world, with the sole aim of raising vital funds and awareness for men’s health, specifically prostate cancer and depression in men.

The program started in Australia, but has now spread to 9 more countries around the world. It’s really great to see Australia coming up with programs like Movember and Earth Hour that make a difference to the world.

If you would like to donate to my (poor) efforts to help, then that would be greatly appreciated! You can do so here: http://au.movember.com/mospace/227691/

YouTube Symphony 2011 in Sydney

YouTube Symphony 2011 has launched, and the Sydney Opera House has been announced as the new final location! The program is revolving around an APAC advertiser and location, so it is an extremely exciting program for the region. Make sure you try the Augmented Reality application in the “Experiment” section.

This excitement is being driven internally by a surprisingly large and distributed number of Australians based all around the world. I was at the launch event at the Opera House on Wednesday morning, and every Google employee who spoke was Australian! It was quite an inspiring moment for an Australian in IT like myself looking to make an impact globally. Working on the project has already been an amazing experience, and things have only just begun.

I guess Symphony is already achieving its goal to be a globally inspiring program.

Live Streaming on YouTube Australia

Tomorrow from 1-2pm YouTube Australia will be running their first live streaming event for the 2010 ICT ministers debate on the youtube.com/AustraliaVotes channel.

ICT policy is shaping up as one of the big issues of this election, which is great because ICT tends to take a back seat in Australian politics. The main issues are around the $43b National Broadband Network (NBN) project and the proposed Internet Filter. Each party has a different perspective on each of these major issues, which hopefully will make for an interesting debate. Regardless, I am proud to be helping to bring this first to Australia!

Edit: The debate ran successfully on YouTube Live! You can now see it here: http://www.youtube.com/watch?v=xRHbeONYdUc

How can charities get started with YouTube?

Each year Google runs a GoogleServe week, where we each choose a non-profit project we would like to contribute to. I chose to present to a group of 30+ non-profit organisations here in Sydney on how they can benefit from our recently launched YouTube non-profit program. Despite being only a small contribution it was a very rewarding experience, and I was really impressed with how sophisticated many of the charities are.

I am posting my presentation here so that any other charities who didn’t attend can view it at any time. I am also posting a 1-sheeter handout that I gave to all attendees which summarises the simple steps to getting their non-profit onto YouTube. I hope they help!

Page 1 of 4

Powered by WordPress & Theme by Anders Norén