optus and elders shake on broadband deal

Optus and Elders shake on broadband deal
31/08/2006 By: Georgia Fekete

SingTel Telecommunication Limited (SGT) subsidiary Optus and Elders, a subsidiary of Futuris Corporation Limited (FCL) have entered into an agreement for the provision of rural and regional broadband, voice and data services. The partnership will seek to build and co-own infrastructure for the delivery of high bandwidth services, with the companies still competing separately in the retail provision of these services.


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The two organisations said they had entered into a memorandum of understanding to bid for funding to deliver next generation broadband services to rural and regional communities across Australia with the assistance of the Australian Government’s ‘Broadband Connect’ program.

Optus CEO Paul O’Sullivan and Futuris CEO Les Wozniczka confirmed the Optus-Elders partnership would give rural and regional Australia a combination of experience in the provision of integrated communications and service capability through access to Elders locations around Australia.

Secondly, under a wholesale agreement with Optus, Elders noted that they would retail services including internet (dialup, broadband and satellite), long distance and mobile.

Elders’ advised that their involvement as a retailer followed successful completion of trial programs at a number of its rural branches in 2005.

Mr O’Sullivan said the partnership demonstrates how Optus is committed to providing telecommunication access to all Australians including those in regional and rural areas.

“We have a proven track record of delivering superior services through strategic partnerships such as this.”

“This partnership will provide Optus and Elders with a unique channel to expand broadband services to under-served areas of Australia,” Mr O’Sullivan added.

Mr Wozniczka said that Elders’ involvement in the partnership was similar to its decision to form the highly successful Elders Rural Bank after it identified banking as an area where its rural clients’ needs were not being met.

The two firms noted that the Optus-Elders agreement was conditional upon receiving funding from the Broadband Connect program and all relevant company and regulatory approvals.