first big nbn contracts awarded today

ABC Online...
NBN Co has chosen Ericsson to supply wireless broadband services in remote areas for the National Broadband Network.

It has announced a $1.1 billion, 10-year contract with Ericsson to design, build and operate a 4G fixed-wireless network for the 7 per cent of Australia that will not be served by the fibre-optic network.

The super-fast wireless network will cover rural and regional areas by 2015, the company says.

NBN Co says the design of the fixed-wireless network has already started, with roll out locations to be announced in the coming months.

It says the fixed wireless network will be offered for rural customers in conjunction with a long-term satellite service, which is designed to offer speeds of 12Mbps, roughly the high-range speed of ADSL2+ internet.

NBN acting chief executive Kevin Brown says the speed of the wireless network will be better than what most people currently get in capital cities.

NBN Co says it has also reached an agreement with Silcar, a joint venture between a Leighton subsidiary and Siemens, on a $380 million project over the next two years for early stages of the fibre-optic network.

That contract has the option of a further two years at an additional price of $740 million.

The Silcar contract is the first fibre contract for the NBN since NBN Co suspended tenders for the network in April saying the prices were too high.

The contract covers Queensland, New South Wales and the ACT, representing almost 40 per cent of national construction on the fibre network in the next two years.

NBN acting chief executive Kevin Brown says the contracts represent the best deal for taxpayers' money.

"Today's agreement with Silcar, coupled with the signing today of Ericsson to deliver a fixed wireless service, combined with the earlier announcements of our interim satellite service and the IT contract for our operating and business support systems, means most of the major building blocks are now in place to deliver a high-speed national broadband network across the country," he said.

Mr Brown says a second phase of contracts will be awarded in the coming weeks.

------------------------------------------------

Thank goodness, it's too late to stop it now no matter who wins the next federal election in two years time. Hope my place is high on the list for coverage.
Dave R.