National broadband network back on track

ALMOST all of the failed bidders are pleased with the federal government's surprise decision to set up a company that will build a high-speed national broadband network (NBN), with criticism coming from one failed NBN bidder.

Prime Minister Kevin Rudd announced earlier this week that a public-private company, with private sector investment capped at 49 per cent, would be established to invest up to $43 billion over eight years to roll out the network across the country.

The government said the company would build the network after none of the bidders for the project met its stated requirements.

The government has also decided to build a fibre-to-the-premises (FTTP) network feeding directly into homes and businesses, superior to the initial fibre-to-the-node (FTTN) option which would've been located on street corners.

Telstra, Optus and iiNet, along with industry bodies such as the Australian Chamber of Commerce and Industry, the Australian Information Industry Association and even the Australian Medical Association, were happy to see the project progressing.

The Competitive Carriers Coalition, a group representing the nation's small telcos, and the Communications Electrical and Plumbing Union were also pleased with the news.

Telstra welcomed the decision to opt for a public-private arrangement as it meant the nations' biggest telco, which was excluded earlier on in the tender process, could again be a part of the project.

But, one of the failed bidders for the NBN project, TransACT, has criticised the change in plans, suggesting it may lead to increased prices for consumers.

TransACT had outlined its case to roll out FTTN broadband in the Australian Capital Territory prior to all five bids being scrapped on advice from an expert panel that none were financially viable.

TransACT chief executive Ivan Slavich said the company's bid met all of the federal government's objectives and provided excellent value for money.

"TransACT's proposal would have been different if it was known the commonwealth just wanted an FTTP solution," Mr Slavich said.

And according to The Nationals, this decision from the federal government was a copy of an idea the rural political party came up with in 2005.

When sharing federal power with the Liberals four years ago, they suggested that government involvement was needed in the establishment of a national high-speed broadband network.

The author has an interest in Telstra.