BREAKING NEWS NBN RFP scrapped!

Stuart Corner
Tuesday, 07 April 2009 05:07

IT Industry - Strategy

The Government has terminated the NBN RFP process on the basis of advice from the independent panel of experts that none of the national proposals offered value for money and will instead establish a new company that will invest up to $43 billion over eight years to build and operate a National Broadband Network. The Government will make an initial investment of the $4.7 billion earmarked for the successful bidder of the now cancelled NBN project. The Government will commence an implementation study to determine the company's operating arrangements, detailed network design and ways to attract private sector investment

The Panel noted the rapid deterioration of the global economy had a significant impact on the process. It said there  had been a once-in-75-year deterioration in capital markets that had severely restricted access to debt and equity funding.

"As a result all national proponents have either found it very difficult to raise the capital necessary to fund an NBN roll-out without recourse to substantial support from the Commonwealth or have withheld going to the market until they have certainty that their Proposal is acceptable to the Commonwealth," said the Prime Minister Kevin Rudd in his announcement address, flanked By Communications Minister Senator Stephen Conroy.

The panel added that none of the proposals had been fully developed.

" None of the national Proposals was sufficiently well developed to present a value-for-money outcome," said the Prime Minister.

In parallel, with its Australia-wide NBN plans the Government will fast-track negotiations with the Tasmanian Government, as suggested by the Panel of Experts, to build upon its National Broadband Network proposal to begin the rollout a FTTP network and next generation wireless services in Tasmania as early as July and will implement measures to address backhaul 'black spots' through the timely rollout of fibre optic transmission links connecting cities, major regional centres and rural towns - delivering improvements to telecommunication services in the short term.

The Government intends to put in place legislative changes that will govern the national broadband network company and facilitate the rollout of FTTP networks, including requiring use of fibre optic technology in future greenfield developments, and initiate s consultation on necessary changes to the existing telecommunications regulatory regime.