Optus wants government handout so it can match Next G

Stuart Corner
Wednesday, 07 February 2007 08:25

Business IT - Networking

Optus is seeking government funding to expand its 3G network beyond 96 percent of the population to match the 98 percent of Telstra's next G, which would cost another $370 million.

Optus is proposing that $200 million be funded by the Government's Broadband Connect program with it providing the remaining $170 million. The new network would cover 500,000 square kms in addition to the 650,000 of the $500m-$800m extension announced last week.

The extended network covering a further two percent of the population would operate at the 900MHz spectrum – pending successful evaluation of the spectrum. It would require around 750 base stations in addition to the 2000-2500 for the previously announced extension.

It will be overlaid with high speed downlink packet access (HSDPA), offering progressively increasing speeds starting at 3.6 megabits per second initially and rising to 14.4 megabits per second.

"Our proposed network extension will be purpose built for regional Australians, in places where they tell us they need it most," Paul Fletcher, Optus' director of corporate and regulatory affairs. said.

Optus claims that Telstra has received over $350 million dollars of public money to expand its network in rural and regional Australia in the last ten years, of which $120 million has been used for its mobile network, and it is calling on the Government to "square the ledger by funding the expansion of a competitive network into areas where it would not be commercially viable to build."

The proposal, dubbed 'Broadband Plus' was lodged by Optus when it applied for Connect Australia funding  on 18 December 2006. In addition to Optus Broadband Plus, the submission included a joint application by Optus and Elders for funding to build a fixed broadband access network serving rural Australia, owned by an Optus-Elders joint venture company.