Telstra's Tasmanian monopoly to be broken by Basslink

Stuart Corner
Monday, 10 November 2008 12:10

Business IT - Networking

They expect the new network to also give a substantial boost to Tasmanian-based providers of value-added services such as content development and applications development.

Aurora Energy declined to provide any details of what capacity it has on Basslink saying it was confidential. Its telecommunications director, Michael Larkin, told iTWire that he expected available capacity to be "absolutely adequate for Tasmania [for the foreseeable future]." He added: "We have a long term agreement with Basslink over many years."

Netspace, which has been one ISPs most vocal on the Tasmanian backhaul costs responded swiftly to the announcement. Managing director, Stuart Marburg, said: "The issue in Tasmania has never been about capacity. It has been about lack of competition keeping prices high and disadvantaging Tasmania residents...We have commenced our planned investment in Tasmania. Specifically, we've commenced installation of the equipment required for ADSL2+ and high-speed broadband in the Hobart and Launceston exchanges."

Netspace has set up a web page on which Tasmania residents can pre-register their interest in a high speed broadband service.

The Tasmanian Government has been under increasing pressure to resolve the Basslink issue . For years it has been boasting about its "co-operative agreement" with the previous owners of the cable but that agreement appeared to be worthless after the cable was sold to its current owner, CitySpring.

Meanwhile the Government has been paying $2m per year to the owners to the owners of Basslink, a fact which the Opposition has repeatedly used to embarrass it.

Broadband users in Tasmania, frustrated with the delays, earlier this year formed a lobby group www.digitaltasmania.org to get the Basslink fibre in use. It claimed that the government was contracted to pay the owners $30 million over the next 15 years regardless of whether the fibre carried any traffic for the Government.

That issue has yet to be resolved. Eccles told iTWire: "The $2m is the subject of further discussions between Basslink and the Government as to where that goes to moving forward."

Tasmanian premier, David Bartlett's press release welcoming the agreement made no mention of this payment.