MELBOURNE (Reuters) -
The Australian government has called
for bids for a A$9.4 billion ($8.8 billion) high-speed
broadband network that will help the country catch up in
competitiveness with its peers.
Australia has slower and more expensive Internet access
than many other developed countries and officials have warned
Australia may become less competitive without faster,
nationwide coverage.
Communications Minister Stephen Conroy said in a statement
late on Friday the government wanted the fiber network to
deliver minimum speeds of 12 megabits per second to 98 percent
of Australian homes.
About 64 percent of homes have broadband now. The vast
distances in Australia and often inhospitable terrain make full
penetration difficult.
The government is offering A$4.7 billion ($4.4 billion) in
funding, which it wants the winning firm to match.
A consortium of nine firms led by Optus, owned by Singapore
Telecommunications, and the former government monopoly Telstra
Corp Ltd are expected to bid.
It has not been decided whether the network will deliver
fiber to the neighborhood "node," usually in each street, or
directly to homes.
Conroy also suggested the separation of the network and
services operations of the dominant telecom may be considered,
as has happened recently in New Zealand.
"The government is prepared to consider changes to existing
telecommunications regulations, to facilitate the roll-out of
the network," he said.
Proposals are due by July 25 and a decision is expected in
October.
"Telstra is ready to build this network, as long as it
makes business sense to do so," Telstra spokeswoman Kate
McKenzie said.
Analysts have said Telstra's existing copper and fiber
network gave it a head start over any rivals, but it would be
at loggerheads with the government over how much to charge for
fast broadband.
($1=A$1.08)
(Reporting by Victoria Thieberger; Editing by Jan Dahinten)
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