CANBERRA (Dow Jones)--Primus Telecom, Internode and iiNet...

CANBERRA (Dow Jones)--Primus Telecom, Internode and iiNet (IIN.AU) were on Monday named by the Australian government as the first retail providers to offer services on leg one of a planned A$43 billion national high-speed Internet network, currently being rolled out in Tasmania state.

Australian Communications Minister Stephen Conroy said the announcement marks another milestone in the project.

"This shows they see compelling business opportunities in providing Tasmanians with services over the national broadband network," Conroy said in a statement.

Still, most analysts believe the ambitious project's success hinges on the government's ability to get the country's biggest telecommunications firm, Telstra Corp. (TLS), to agree to work with it on the national network build.

Tasmania, Australia's smallest state, is being used as a pilot for the high-speed, fiber-to-the-home network. The first services are expected to begin in July.


-By Rachel Pannett, Dow Jones Newswires; 61-2-6208-0901; [email protected]



--Dan