Aussie clears way for high-speed broadband network
8:55AM
Wednesday April 09, 2008
By Victoria Thieberger
MELBOURNE - The creation of a much-needed high-speed broadband network in Australia could be fast-tracked after the government cancelled a A$958 million funding deal for a rural network which would have overlapped with the planned national one.
Australia has slower and more expensive internet access than many other developed countries, and though penetration rates are on a par, officials and experts have warned Australia may fall behind in competitiveness without faster, nationwide coverage.
The scrapping of the rural network plan comes as the government plans to invite bids for a national fibre network as early as next week. It is offering A$4.7 billion in funding, which it wants the winning firm to match.
"(Telecommunications minister) Stephen Conroy is really aggressively trying to get this whole network up and running," said Theo Maas, partner at Fortis Investment Partners.
Last week, the government cancelled the rural contract with joint venture partners Optus, owned by Singapore Telecommunications, and Australia's Futuris Corp Ltd.
