Australia scraps broadband tender, plans public operator

IrelandOffline_

Australia scraps broadband tender, plans public operator Tuesday 7 April 2009


The Australian government has scrapped its plan to award the contract for a national broadband network to a private operator and will instead set up a state-owned company to manage the project. The government said the evaluation of the offers in tender showed that none of them offered "value for money" and the global financial crisis had an impact on the process. The proposed new network will be majority owned by the government with private investment. Once the network is built, the government will sell down its stake within five years. The aim is to take FTTP broadband services at 100 Mbps to 90 percent of homes and businesses and use wireless and satellite to connect the remaining 10 percent with at least 12 Mbps services. The government will use its Building Australia Fund and issue Aussie Infrastructure Bonds to finance the project, with state and private investment in the network expected to reach AUD 43 billion over eight years. The next step will be an implementation study to determine the operating arrangements, detailed network design and ways to attract private sector investment. The government aims for network roll-out to start in early 2010, while Tasmania is expected to start already in July on plans for a FTTP network and next-generation wireless services. The government also plans legislation to require greenfield developments to adopt FTTP from July 2010, as well as an overhaul of the telecommunications regulatory system to ensure open access to the new network.
A government discussion paper released with the announcement proposed a number of regulatory changes. These include allowing the ACCC to set up-front access fees for the Telstra and other networks, strengthening the powers of the ACCC to tackle anti-competitive conduct, measures to better address Telstra's vertical and horizontal integration, such as functional separation, addressing competition and investment issues arising from cross-ownership, improving universal access arrangements for telephony and payphones, and introducing more effective rules, requiring telephone companies to make connections and repairs within set time-frames. Industry comments are expected by 3 July, after which legislation will be introduced.

IrelandOffline_

IrelandOffline_ wrote: »

Australia scraps broadband tender, plans public operator Tuesday 7 April 2009

http://www.whirlpool.net.au/news/?id=1843&show=replies

Government to go it alone on FTTH NBN

Today, 8:30 am

Phil Sweeney
UPDATED | Kevin Rudd has announced that the NBN tender process has been terminated, and that the government will go it alone on a new $43 billion broadband network.
The new wholesale-only network will connect 90% of homes with fibre to the home and will offer 100Mbit/s, with "next-generation" wireless and "third-generation" satellites to cover the remaining population. The network will be "open access" so retail ISPs can build their own products to sell to businesses and consumers.
"We believe that fast broadband is absolutely essential for our nation's future", he said at a press conference outside Parliament House today.
"The Government has announced it will establish a new company that will invest up to $43 billion over eight years to build and operate a National Broadband Network delivering superfast broadband to Australian homes and workplaces", said an announcement on the DBCDE website.
Calling it, the "single largest infrastructure decision in Australia's history", Rudd said the project would employ up to 37,000 people a year and help stimulate the Australian economy. Private industry would contribute up to 49% of the funds, and the government would sell the company after operating it for 5 years, he said.
The tender process was cancelled as "none of the national proposals offered value for money". "The Panel noted the rapid deterioration of the global economy had a significant impact on the process", it said.
Senator Conroy said that the Tasmanian Government's proposal had merit and that "fast-track" negotiations will occur to get a Tasmanian roll-out started as early as July.
The rest of the country will have to wait for an "implementation study to determine the operating arrangements, detailed network design, ways to attract private sector investment – for roll-out early 2010".
A consultative process will occur to determine a more effective telecommunications regulatory framework which will also cover the new broadband network.
Links:

• DBCDE announcement

Galen

How long would it take to drum those facts into that area of cotton that Minister Ryan calls his brain?

BendiBus

So far, they've announced a plan, scrapped it, announced a new plan, delivered a few soundbites etc.

As with any other political announcement, here or elsewhere, I'll believe it when I see it.

Galen

Yeah, same auld crap different country. Promises Promises Promises

crawler

I think the pivot point on this between success or failure will hinge on forcing Telstra to structurally or functionally separate in order to gain duct access and that will be one big big big big big big bun fight.

If done correctly though - there would be winners all around, including Telstra, hence their share price increased today.

smellslikeshoes

Galen wrote: »

Yeah, same auld crap different country. Promises Promises Promises

I agree with this statement wholeheartedly. After saying that though the one thing that seems to be different in this situation is the people making the decisions seem to know what they want and have the will to make gutsy decisions to get what they want, that has to count for something in my opinion.

IrelandOffline_

smellslikeshoes wrote: »

I agree with this statement wholeheartedly. After saying that though the one thing that seems to be different in this situation is the people making the decisions seem to know what they want and have the will to make gutsy decisions to get what they want, that has to count for something in my opinion.

In the beginning was the plan. The plan was good.