The bid to build Australia's FTTN network: a one horse race

Stuart Corner
Sunday, 13 April 2008 13:35

Opinion and Analysis

Then there is the question of money. The Government is prepared to shell out up to $4.7 billion in debt or equity but it's expected that the successful bidder will have to find at least this much again. As Telstra's Phil Burgess gleefully pointed out this week, in the current climate investment capital is getting harder to find. And for anyone with this kind of cash, there must be plenty of infrastructure projects elsewhere with far fewer uncertainties attached to them.

Any serious bid in competition to Telstra is likely to come from a consortium of players - including those providing finance - so these bidders will have the additional burden of organising themselves as a viable competitor to the incumbent.

Releasing the RFP, Conroy said:  "The Government encourages interested parties to come forward with innovative proposals. These will be assessed by the Panel of Experts...who will then provide their recommendation to Government so that by the end of year the Government can announce the successful proponent and the new network build can then commence." He makes it all sound so easy!