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NBN SHOCK: Acacia frontrunner for contract win
March 19th, 2009 in CommsDay Australasia

Acacia is rumoured to be in the box seat to build the National Broadband Network. Following speculation that the form of the NBN itself has shifted to more of an emphasis on wholesale backhaul, industry sources claim the Federal Government is currently locked in negotiations with Acacia to roll out fibre with the backing of Nextgen Networks owner Leighton Holdings.

With a formal announcement from Prime Minister Kevin Rudd and Communications Minister Stephen Conroy now expected around April 7, sources close to the negotiations inform CommsDay that both Acacia and Leightons have been in back-room meetings with the government over the NBN rollout.

If, as speculated, the NBN outcome was to include a substantial national backhaul network, Leighton-owned Nextgen Networks would likely play a key part. Nextgen already operates the third-largest fibre network in Australia, some 8,500kms of optical cable spreading from Brisbane through to Perth with an alternative route traversing regional Victoria and NSW. Nextgen told CommsDay the company currently has “no formal relationships” with any NBN proponents.

Acacia and Leightons already have strong personal and business links – Leightons chairman David Mortimer holds 15,000 fully paid shares in Acacia and is also a governor of the Australia Israel Chamber of Commerce. Leon Kempler, a director and shareholder of Acacia, also acts as Australia Israel Chamber of Commerce National Chairman.

The group would also come with a firm knowledge of Telstra’s existing network – director Lawrence Paratz is understood to have worked on Telstra’s own FTTN proposal before leaving the company mere months before starting Acacia, while former Telstra Countrywide director Doug Campbell is Acacia’s chairman. Also, wholly-owned Leighton subsidiary Visionstream holds a $210 million contract with Telstra for maintenance of its copper and optic fibre networks which will expire in September this year.

NEEDS TELSTRA ACCESS: In its regulatory proposal to the Federal Government, Acacia stated that a “guaranteed and indefeasible right of access to necessary facilities,” would be key to its rolling out the NBN, banking on legislative change to allow it access to Telstra’s network.

*** Conroy himself appeared to subliminally hint at an Acacia win during Senate debate this week. While the minister has consistently referred to the NBN as delivering 12Mbps to 98% of the population, he for the first time changed his phrasing this week to cite the figure of 100% – with Acacia being the sole NBN bidder to claim it could reach 100% population coverage using satellite, wireless and fibre technologies. “Let me be clear: Labor’s plan to deliver faster broadband to 100% of Australians includes the latest satellite technologies and the latest wireless technologies. They are for the 2% outside the reach of the fibre-to-the-node technology,” Conroy said. ***

Acacia conspicuously avoided any involvement with the NBN Senate Select Committee and has remained completely underground since lodging its proposal last November. At the time of lodgement, Acacia revealed it had won the support of vendors including Nokia Siemens Networks, Fujitsu and Juniper – with NSN and Juniper having both provided equipment for Nextgen’s existing network.

But despite the apparent technical knowledge of its team and a rumoured multi-million dollar investment in its bid, Acacia’s credentials as a company remains under question – it operates from a Bondi Junction office suite and has provided little detail on how it will fund its rollout.

Luke Coleman