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Date for multi-billion broadband project submission set


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4/09/2008 - A national broadband network is a step closer with the federal government announcing the deadline for bids for the multi-billion project.

The seven bidders have until November 26 to submit their proposals to provide Australians with high-speed broadband services.

"The national broadband network is part of the Rudd government's plan to drive investment in critical infrastructure and ensure that Australia takes advantage of the many opportunities presented by the digital economy," Communications Minister Stephen Conroy said at Wednesday's announcement.

The federal government has set aside $4.7 billion of taxpayers' money to build the network which, it says, will deliver high-speed internet services to 98 per cent of the population.

The winning bidder, who will assume ownership of the network, is expected to make up the rest of the cost.

The government has been criticised for delays to the tender process, which, in the lead-up to last November's federal election, it promised to have finalised within six months of coming to office.

They have been blamed on delays in obtaining vital information for the bidders.

Senator Conroy said the last of the network information had now been made available.

"It has always been the government's position that the provision of appropriate network information to proponents is vital for the success of the national broadband network process and that this should be done as soon as possible," Senator Conroy said.

"Requested network information has now all been received from contributing carriers, reviewed for compliance with the government's request and is now available to all proponents."

Telstra and Terria, two of the confirmed bidders, both welcomed Wednesday's announcement, and immediately resumed their debate over whether the company that wins the rights to build the network should be structurally separated.

The majority of bidders, including Terria, say the company that wins the rights to the project must have separate network and retail businesses to ensure effective competition and the best deal for consumers.

Terria chairman Michael Egan said better, faster and cheaper internet services could only be achieved if the new network provided genuine and assured open access for all internet service providers.

"And that can only be achieved if the new network is structurally separated from any access seeker and if both price and non-price terms of access are monitored and enforced by a strong and independent regulator," Egan said.

Telstra rejects that notion, claiming structural separation would increase costs and destroy investment.

Nonetheless, Telstra has also guaranteed other telcos would have open access if it won the rights to build the network.

Telstra spokesman David Quilty said the telco's competitors would be able to access the network on an equivalent basis as Telstra's own business units.

"This is a critical promise and we fully expect it to be enshrined in law and to be policed by the ACCC - and we have no difficulty with these protections," Quilty said.

"Telstra's guarantee of open access renders obsolete the 'fool's gold' debate around separation.

"Separation increases costs and kills off investment and it has not worked anywhere in the world."

Source: AAP NewsWire

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