High speed network gets off to a slow start

The Federal government’s high speed national broadband network is making a slow entrance.

The government had hoped to start building the network this year.

A start on construction is now likely to be delayed until March, at the earliest.

The government struck unexpected delays in getting the necessary legislation through parliament.
And the tender process, itself, was troubled.

Australia’s biggest carrier, Telstra, refused to accept the government’s demand that a separate entity be set up to operate the new network.

It did express an interest in undertaking the project but – in bureaucratic terms – its bid was non-conforming.

In ordinary circumstances, that would rule it out of contention.

But the circumstances, at present, are far from normal.

The government badly needs the new network, to fulfil an election promise.

And Telstra does have the muscle necessary to build it.

The government has also received bids from Optus, Acacia, Axia Transact and the Tasmanian government.

But the last two, in particular, are interested only in building parts of the proposed national network.

The government now has panels of experts reviewing the rival bids.