Alex Zaharov-Reutt
Thursday, 22 May 2008 20:08
Opinion and Analysis
Page 2 of 3
Ovum’s Research Director, David Kennedy, said the decision was a good one, noting that Ovum was “not surprised that the Government is extending time for the tender process, because this is a very complex project.
“If anything, the Government has been pushing too hard to meet a political timetable. This is an important and complex decision, and shouldn't be rushed. This latest extension will improve the quality of bids and the competitiveness of the tender”, continued Kennedy.
He concluded that: “The Government should aim for the right result, not a quick result. Also, the extension must be kept in perspective. The network will take around four years to build, and it will be used for decades. A few extra weeks to ensure that the process is genuinely competitive are well worth any additional delay.”
News.com.au
quoted Federal Opposition spokesperson Bruce Billson saying the backflip was not only “ridiculous and unrealistic” but also “deeply embarrassing”.
Billson is quoted as saying that: “It's pleasing he [Senator Conroy] has been forced to finally acknowledge how ridiculous and unrealistic his proposal deadline was, considering he knew full well that proponents did not have access to the information they needed to develop and cost their bids at the time of calling for submissions.”
As Ovum’s Kennedy notes, getting Australia’s next broadband network right will have repercussions for decades.
Of course, this isn’t just over the issue of speed, but also the issue of price. What good will it be to have a network that smashes the tyranny of distance into the dust if it simply replaces it with the tyranny of non-affordability to people across Australia?
So, Senator Conroy’s decision that the Federal Government “will amend the Request for Proposals to reflect this [new] timetable” is a good one.
Who actually ends up winning the tender is still a whole other matter, with the G9 consortium of telecommunications companies changing their name to Terria.
Will be there a "war on Terria"? Please read on.
