Telstra makes mockery of NBN tender process

Stan Beer
Thursday, 27 November 2008 09:12

IT Industry - Tenders

It really makes no difference whether a Howard Coalition or a Rudd Labor Government is in power, Telstra obviously considers itself answerable to no-one. What other conclusion can be drawn from the monolithic telco's action of answering the Government's RFP to build the National Broadband Network with a non-compliant 12-page document?

Telstra appears to be supremely confident of winning Australia’s National Broadband Network bid after submitting its 12-page “proposal”, in stark contrast to Optus-Terria’s weighty 1000-page tome detailing precisely how it would deliver an NBN to Australians.

In effect, Telstra has taken off a duelling glove and slapped Communications Minister Senator Stephen Conroy across the face shouting: "I dare you to use someone else!", yet again declaring “war on Terria”.

As a result, the Government now finds itself backed into a corner. It has issued an RFP to build the NBN with clearly defined guidelines.

The Government has received five detailed compliant responses from players who are largely unknown quantities, except perhaps Optus-Terria.

From Telstra, the only player with the capability to build the NBN on its own, all the Government has received is a demand not to break the company up, a promise to sell wholesale access to the NBN and notice that the best it can do with $4.7 billion from the Government plus $5 billion of its own is reach 80-90% of the population - once again the bush is dudded.

Telstra also wants the $4.7 billion as a “concessional loan”, implying the money will be paid back in full, thus granting Telstra full ownership of the network thereafter.

What's more, Telstra would only be able to provide world class broadband (25Mbps to 50Mbps) to 65-70% of the population. The rest would have to make do with sub-standard broadband (12Mbps to 20Mbps).

So the Government is faced with a choice: take a chance on an untested new player and pray to the heavens that it can build the NBN and make it work; or get down on its knees, lick Telstra's boots and admit that the carrier is the real of ruler of this nation.

Neither choice is very attractive.

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