Government funding for FTTH? No way says Coonan

Stuart Corner
Friday, 12 October 2007 13:34

Opinion and Analysis

"Given the Expert Taskforce Guidelines, Telstra is not clear how bidders would be aware of the option of public funding. It is critical that all bidders have absolute clarity about the bidding process and the boundaries of what the Taskforce can consider, including the availability of any Government funding and the quantum of any such funding. Are there any other requirements in the current Guidelines that bids may not need to comply with, or any other areas in which the Minister anticipates that Taskforce recommendations contrary to its terms of reference may be accepted by the Government?"

The letter came from Telstra's general counsel Will Irving. Coonan replied, direct to CEO Sol Trujillo, and likewise made her letter public .

" The Expert Taskforce Guidelines state at paragraph 3.29 that, in relation to this process, the Australian Government is not providing funding. My media release of 20 September 2007 clearly endorses this position...If there is a proposal for a fibre to the home network then, as with all other proposals, it would be assessed by the Expert Taskforce solely against the objectives and assessment criteria detailed in the Guidelines and on the basis that no Government funding will be provided."

So what about the FR's article and what she was reported as saying therein? Coonan dismissed it saying she would  "...encourage all parties that are interested in participating in the Expert Taskforce process to rely on the Guidelines and not media reports taken out of context."

Telstra did not take the FR's report out of context. Perhaps Coonan was misquoted or her remarks taken out of context but if so, why did she not respond immediately? If shadow minister Stephen Conroy had been similarly  reported apparently reversing party policy, you can bet you boots Coonan would have fired of a press release faster than you can say fibre-to-the-node.

And why should Telstra or anyone else trust the Expert Task Force guidelines? The guidelines for Broadband Connect Funding said: "Up to $600 million may be available for this purpose, providing funding support for large scale broadband infrastructure projects. Only one funding round will be held. Depending on the nature of the applications received, the Australian Government may not allocate any or all available funds."

No smoke without fire I say and Coonan's reticence in quickly and directly contradicting the FR's report just makes my nostrils twitch even more.