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Telstra ready to roll out network

The Age
AAP | November 26, 2007 - 1:35PM

Telstra says it can begin rolling out fibre optic cable for a new super fast national broadband network within 48 hours, if given the all clear by the new Federal Labor government.

The telco's regulatory affairs head Dr Phil Burgess said an immediate roll out was possible.

"We're prepared with a plan, with the money and the talent and technology to get the job done," he said.
"Within 48 hours we can start digging holes."

Labor's election on Saturday night changes the telco landscape significantly - telecommunications was one area of substantial policy difference between the two major parties.

The defeated coalition government's objective was to ensure high speed broadband access through a range of technologies, including wireless WiMax technology.

To that end, former communications minister Helen Coonan earlier this year approved a grant of almost $1 billion to an Optus and Elders (OPEL) joint venture to build a wireless bush broadband network.

But the future of that program is now in doubt because of Labor's promise to match $4.7 billion of public money with a similar private sector contribution to build a national fibre optic broadband network.

Early last month, Labor communications spokesman Stephen Conroy said the party would honour the funding to OPEL, but hinted the partners may wish to review their business plan.

"We're going to build a national high speed fibre network," Mr Conroy said.

"The question is not `what's Labor going to do about OPEL, it's what OPEL's going to do about Labor's fibre to the node network.''

Comment is being sought from Optus.

Despite Telstra's enthusiasm, it's unlikely any fibre roll out will start before late next year.
There's also no guarantee Telstra will be building the network.

The Optus-led G9 consortium of telco companies could modify plans previously submitted to the Australian Competition and Consumer Commission for a capital city network build.

There's also industry speculation of interest from international players like Deutsche Telekom and Ericsson.

But Dr Burgess was unconcerned about the prospect of competing international and domestic bids for the Labor broadband honey pot.

"If others want to join the fray, they're welcome but I think it very unlikely a regional telco would make the investments required," he said.

"You don't just take the subsidies, you have to buy the trucks, hire technicians, buy them $10,000 tool sets - it goes well beyond the subsidies."

Dr Burgess said Telstra always did its best to work with the government of the day, but added that he was pleased by Labor's election.

Senator Coonan is unlikely to be missed by Telstra.

"I think that she had a run and now someone else has a chance, it's good to spread these opportunities around," Dr Burgess said.

"Her main legacy is giving $1 billion dollars to a foreign government to duplicate an existing network.