Thursday 27th November 2008

National broadband:A clash of titans

by Alan Thornhill

“It was a non-conforming bid.

“I would have thrown it out, without thinking about it.”

That’s how an old public servant, who wishes to remain anonymous, greeted Telstra’s bid to build Australia’s new national broadband network.

This is, indeed, an urgent project.

How much time do you waste each day, sitting around waiting for the present one to warm up?

That’s what your Grandad did, with his old Ford T.

The Federal government, though, has confirmed that it will consider Telstra’s bid, even though it is, indeed, non-conforming.

There are, of course, other contenders.

These include Optus, Acacia and Axia, Transact and the Tasmanian government.

Ordinarily, though, Telstra would have been the front runner.

It has the size, the technical knowledge and the clout not only to do the job, but to do it well.

The government, though, wants it to set up a separate entity, to run the new system.

It believes that would give others equal access in its use.

The bids are now in.

That part of the process has now closed.

The government has given an expert panel six weeks to consider them.

The panel will then have another two weeks to consider advice from the Australian Competition and Consumer Commission, before a decision is announced.

Separation is, certainly,  important.

But Telstra is not willing to oblige.

It says it won’t be split.

So the dilemma persists.


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Profile

Alan ThornhillAlan Thornhill is a parliamentary press gallery journalist. Private Briefing is updated daily with Australian personal finance news, analysis, and commentary.

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