Telstra lodges NBN bid that isn't

Stuart Corner
Wednesday, 26 November 2008 07:31

Business IT - Networking

Telstra has provided the Federal Government with an outline of what it says could be achieved through the detailed bid it has prepared in response to the National Broadband Network RFP but which it has not submitted "due to a number of unresolved issues in the Government's Request for Proposals (RFP)."

It says that "While Telstra has devoted very considerable resources to preparing a fully detailed bid a number of fundamental issues have not been resolved, including: the lack of clarity around possible further separation; the 12-month negotiation period under the RFP; concerns about the use of Telstra's detailed information; the proposed commercial terms issued by the Commonwealth."

Telstra says it believes the Government can consider its proposal under the existing terms of the RFP and should agreement be reached on outstanding concerns "a possibility exists for more detailed dialogue. Telstra has made it clear it is willing to engage in discussions with the Government to ensure Australia harnesses the benefits of a high-speed, high-definition world."

However when communications minister Stephen Conroy said earlier this year that the government would consider non - complying bids in response to the RFP the Opposition claimed that the terms of the RFP precluded this.
 
Then shadow minister, Bruce Billson, said: "There are...strong doubts about whether the clause pertaining to the RFP document not being a process contract [which would preclude the consideration of non-compliant bids] would be legally effective; in court you could have a situation where if it walks like a duck and sounds like a duck, then it could be determined that it is one." Legal experts cited a number of precedents that supported his claim.

Telstra says it would invest up to $5 billion of its own capital and wants the Government to provide its promised $4.7 billion in the form of a concessional loan.

The network would cover up to 90 percent of the population providing downlink speeds between 25Mbps and 50Mbps in 65 percent to 75 percent of the footprint and downlink speeds of between 12Mbps and 20Mbps in the remainder of the footprint.
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