Australian Government calls for bids for $9.4 billion high-speed broadband network
By Arnold Zafra
The Australian government has called for bids to build a high-speed broadband network, and has offered up to AUS$4.7 billion in funding, matching dollar for the dollar the funding it expects the winning bidder to commit to.
According to Yahoo news, the announcement was made following several warnings by government officials that Australia’s current slow and expensive Internet access may be hampering the country’s competitiveness in the worldwide market.
The government wants to speed up the country’s Internet infrastructure to provide at least 80% of the Australian household with at least a minimum Internet speed of 12 mbps.
At this stage the Australian government is expecting to receive bid proposals from a consortium of nine firms that include Singapore Telecommunications firm Optus and Telstra Corp. However, matching the $4.7 billion bid price is not only the main consideration that bidding companies must comply with. They must also ensure that they can deliver the minimum Internet speed that the government wants to achieve.
Communications Minister Stephen Conroy said that the Australian government wants separate network and services operations, similar to what the New Zealand government has imposed.
“The government is prepared to consider changes to existing telecommunications regulations, to facilitate the roll-out of the network,” said Conroy.
The bid proposals are due by July 25, and it seems Telstra is very much interested with the broadband project.
“Telstra is ready to build this network, as long as it makes business sense to do so,” said Telstra spokeswoman Kate McKenzie.
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