Losing Bidders Welcome Broadband Plan

Most bidders for the national broadband network have welcomed the federal government's decision to build the network itself at a cost of $43 billion over eight years. This morning, Prime Minister Kevin Rudd said the government will establish a company, with private sector investment capped at 49 per cent, to build the network. Mr Rudd said the public-private company would invest up to $43 billion over eight years to roll out the high-speed broadband network across the country, starting with Tasmania. The Prime Minister said the new plan was created after none of the bidders for the project met the government requirements.

Perth-based internet service provider iiNet said the new plan was the best possible outcome for Australians. "This is the best of all possible outcomes and will ensure Australians have access to fast, affordable and competitive broadband," managing director Michael Malone said. The new plan delivers on the key issues of open access, regulatory reform and separation between retail and wholesale. It will also benefit the Australian telecommunications industry through increased competition, innovation and jobs, Mr Malone said.

Fellow bidder Optus is also supportive of the new plan, calling it "visionary". "What the government has done is picked up ours and other recommendations and gone straight to the end gains. We think that is a visionary and bold thing to do," Optus director of government and corporate affairs Maha Krishnapillai told AAP on Tuesday. The new NBN plan would be a "highly attractive" investment for all telcos, Mr Krishnapillai said. "We think it is going to be a bedrock piece of utility infrastructure for decades to come," he said.

Full Article: WA Business News


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