Stuart Corner
Sunday, 17 June 2007 11:13
IT Policy -
Regulation
Page 1 of 2
The Australian Labor Party has written to the Australian National Audit Office to ask the Auditor General to investigate the administration of the Broadband Connect Infrastructure Program tender process by the Howard government. The move comes with Minister for Communications, Information Technology and the Arts, Senator Helen Coonan set to announce Optus as the winner of all of the $600 million tender and a further $300 million plus, sources have told iTWire.
In recent weeks there have been a number of media reports suggesting that the government intends to increase the funding pool for the Broadband Connect Infrastructure Program from the original $600 million to at least $900 million.
The ALP points out that, if correct the decision to provide additional funding was taken after the application period for this program had closed. And it also says: "It has been suggested that some participants were advised of the possibility of increased funding under Broadband Connect Infrastructure Program weeks before other participants."
Shortly after Optus announced plans to spend $500m-$800m converting its entire GSM network to 3G with coverage of 96 percent of the population Optus revealed that, in addition to its joint bid with Elders for the $600m of Broadband Connect Infrastructure funds, it had
submitted a proposal to expand its 3G coverage from 96 to 98 percent of the population (the same as claimed by Telstra for Next G) at a cost of $370 million. Optus proposed that $200 million be funded by the Government's Broadband Connect program with it providing the remaining $170 million.
Communications minister Helen Coonan's
announcement of the programme, in September 2006 stated that the Government "will invest up to $600 million in rural, regional and remote Australia to encourage private sector rollouts of broadband infrastructure."
According to the ALP, "It was on this basis that participants prepared their bids in this tender. However, it has since emerged that some participants were advised by DCITA in private meetings that additional funds beyond the $600 million allocated to the program by the Government might be available to bidders. Tender participants have indicated that this information was not provided to other tenderers for many weeks."
