Australian electricity utilities look at offering broadband

23/11/05:

A massive telecommunications project run by a consortium of Australian electricity utilities is targeting a new way of delivering broadband services to consumers in regional Australia.

Eleven of the country's electricity utilities have joined together to form a group known as UtiliTel, which is investigating ways to create added value to their infrastructure.

Fierce competitors in the electricity market, the utilities are looking at sharing ideas, and their fibre cable, to create a network that could one day be offered to, or rival Telstra's broadband service.

Independent telecommunications analyst Paul Budde, who is acting as an adviser to UtiliTel, on Tuesday said that the group was currently involved in 45 projects around the country.

"It is becoming clear that there is an opportunity to benefit everybody in regional Australia who wants broadband," Budde said.

Budde said the network would benefit those internet service providers (ISPs) that are having trouble accessing Telstra's copper network.

"There is of course an increasing problem in getting access to the Telstra network," Budde said.

"You really need some national infrastructure-based competition and Utilitel is going to do this."

He said the group would likely move slowly as it examines the possible services it can offer.

"UtiliTel is providing a platform for all of the individual utilities to understand what it is all about and learn from each other," he said.

"They can then use that knowledge in their local area and start implementing telecommunications network and telecommunications services.

"I'd prefer to take the slow approach, rather than now having to come up with a model ... the goal of this is to create more broadband networks in regional Australia."

Electricity provider and UtiliTel member ETSA Telecom Adelaide General Manager Greg Story, said the group formed in 2000.

"Five years ago we came together and started sharing information in relation to telecommunications," he said.

"That information sharing covered technical issues, regulatory issues and shareholder issues.

"We all operate in telecommunications in a pretty similar way - that is, at the bottom end of the value chain.

"Eventually all of our networks will be connected, and it will create a fairly formidable footprint over the whole country."

Other members of the group include Aurora Energy, Country Energy, Transgrid, EnergyAustralia and Western Power.

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