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Telecommunications Basslink bites back: plans to be a wholesale carrier
Telecommunications Basslink bites back: plans to be a wholesale carrier | Basslink bites back: plans to be a wholesale carrier |
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| by Stuart Corner | |
| Thursday, 15 May 2008 | |
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When Basslink was built, a fibre optic component was added with the intent of making some of this available to bolster Tasmania's broadband capacity and increase competition for provision of broadband. The Tasmanian Government has long-claimed to have had an agreement with Basslink for access to this fibre, and is paying $2 million per year for 15 years for what is believed to be some form of deposit towards a full usage agreement. However statements made by the Government seem to indicate that it planned to negotiate access to the dark fibre and hand this to its chosen strategic communications partner, Aurora Energy, which would have been responsible for interconnecting the Basslink fibre to other services on the mainland. In a competitive market the revenue, and margin that CitySpring would be able to extract from such a deal would be much less than from providing wholesale bandwidth services terminated on the mainland in a data centre where they could be interconnect however a wholesale customer chose. It would therefore seem that the Tasmanian Government's agreement with Basslink's previous owner did not lock in access to the dark fibre and CitySpring, not surprisingly is looking to capitalise on is new asset to the greatest extent possible. CONTINUED |
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