Telstra booted out of $15-billion Australian telecom project

15 December 2008

Australian broadband minister, Stephen Conroy has officially ruled out the eligibility of Australia's largest phone company, Telstra from the bidding process to build the $15-billion government-sponsored national broadband network project.

Stephen Conroy said the company has 'excluded itself' by failing to submit "one of five mandatory requirements of the RFP and there was nothing to stop Telstra from submitting a complete proposal and competing vigorously with other proponents in this process.''

The minister also confirmed that other bidders like Acacia, Axia, Optus-Terria, TransACT and the Tasmanian government have all met the requirements and conditions for participation.

The $15-billion project involves laying a fibre optic cable network to 98 per cent of Australia by replacing the old copper cable with high speed fibre optic cable and Telstra has a commercial advantage over its rivals as it owns the exchanges from where the existing copper wires are to be replaced.

The mandatory requirements for bidding included that proposals were to be written in English, Australian legal units of measurement are used, they include a complete and signed 'proponent's declaration', that proposals for more than one state or territory include a proposal for all states and territories, and the inclusion of an SME plan is 'the condition for participation'.

Conroy said, NBN bidders were informed of the mandatory requirements in writing on two occasions, and accused Telstra of having ''more than enough time and resources to fully understand what was required of proponents in this process''.