aapt pulls out of terria

Gotta be good for Telstra

AAPT deals a blow to Terria
AdvertisementEmail Print Normal font Large font AdvertisementMatt O'Sullivan
October 17, 2008

AAPT'S decision to pull out of the Terria consortium bidding to build a $15 billion broadband network has raised fears it will do a "sweetheart" deal with Telstra.

The exit of the second-largest member, owned by Telecom New Zealand, is a serious blow to Terria's credibility as a viable alternative to Telstra. It comes just days after the consortium, led by Optus, conceded it was having to seek alternative funding for the project because of the global credit squeeze.

Ovum analysts said AAPT was in effect "developing a plan B in case of a Telstra win".

"The Terria bid faces significant hurdles, especially raising capital, and it is dangerous for Telstra's competitors to put all of their eggs into the Terria basket," they said.