National Broadband Network now a one horse race

October 24, 2008: TERRiA remains the only company committed to lodging a nationwide bid for the new National Broadband Network. This follows confirmation from Telstra this week that it will not participate in the tender process unless the government rules out structurally separating the new network.

Speaking to Rural Press, Telstra Country Wide managing director, Geoff Booth said, "We cannot submit a tender, we will not submit a tender … people think we're playing a bluff here, but I spoke to the chairman yesterday, and the CEO this morning, and the message is clear: we will not bid if separation is not taken off the table."

Michael Egan, Chairman of TERRiA, said that Telstra’s demands showed that it was only interested in rolling out the new network for the purpose of re-monopolising fixed line voice and internet services in Australia. This is an outcome that will affect all Australian broadband users for years to come.

“Talking about separation to Telstra is like waving a red rag at a bull,” Mr Egan said.

“No one is calling for the dismemberment of Telstra. Despite Telstra continually clouding this issue, this is not a debate about the structural separation of Telstra’s existing business and network structure. It is about the new National Broadband Network infrastructure.”

“The new network must be independent of any existing retailer or even upstream user like a media company or content provider. That ensures that the new network company has a commercial interest in treating everybody equally. Its commercial interest lies in maximising traffic on that network, which means that it has an interest in encouraging competition and encouraging innovation.”

“TERRiA is determined to win the new National Broadband Network contract and ensure that Australian households and businesses have the opportunity to reap the benefits of affordable broadband and choice of provider,” Mr Egan said.

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About TERRiA

TERRiA is a consortium of seven major infrastructure based telecommunications companies which will bid to provide Australia’s new National Broadband Network (NBN).  It includes iinet, Internode, Optus, Macquarie Telecom, Primus, SOUL and TransACT.