102/07
Friday 3 August 2007

Telstra’s not happy, but consumers the real winners

The Minister for Communications, Information Technology and the Arts, Senator the Hon Helen Coonan said today that it has been ten years since the Howard Government took the landmark decision to open up Australia’s telecommunications regime to competition.

“In less than a decade, this decision has changed forever our telecommunications landscape and is delivering significant benefits to consumers in terms of choice and price.

“Australia’s telecommunications industry has been transformed from a single dominant provider in Telstra, to full and open competition with 167 licensed carriers in the marketplace and prices falling by over 26 per cent,” Senator Coonan said.

Just over six weeks ago, the Government released its much anticipated Australia Connected announcement and named OPEL as the winning bidder to rollout a new, wholesale high speed broadband network across Australia.

OPEL, a joint venture by Optus and rural group Elders, will deliver Australia one of the world’s most comprehensive rural and regional broadband networks for a country of our size and population spread. Broadband speeds will be 20 to 40 times faster than those used today and delivered in the country at city comparable prices.

OPEL’s new network will be funded by government support of $600 million from the program and $358 million of additional funding to a total of $958 million. OPEL’s own commercial contribution to the network is $917 million. The new broadband services will retail between $35 and $60 per month depending on the speed package chosen by the consumer.

“So it doesn’t surprise me to learn via media release today, that Telstra has taken sour grapes to a whole new level and has initiated Federal Court proceedings,” Senator Coonan said.

“It’s always been the Australian way to respect the umpire’s decision, particularly if you have been beaten fair and square by a superior bid.

“Quite frankly, I would be much happier if Telstra put this sort of effort into rectifying the rising level of consumer concerns with the rollout of their new Next G network.

“I have just spent the last six weeks on the road across Australia and based on the level of frustration I heard from people regarding their mobile coverage, this is the issue that needs Telstra’s urgent and genuine attention.

“As I have said before, my focus is squarely on Australian consumers and ensuring they get the services they need, at affordable prices, regardless of where they live.

“The fact that no-one can hide from is that Telstra put in a bid for funding; it was independently assessed and then soundly beaten by a superior bid from OPEL.

“According to Telstra’s own admission, its bid would have covered only 250,000 underserved premises, less than half that covered by OPEL.

“This is just a case of an ordinary bid being blown out of the water by an outstanding bid –and the loser not happy with the umpire’s decision.

“I completely reject the assertions made by Telstra. The process was fair and consistent with both the guidelines, assessment plan and probity requirements.

“Consistent with the highest ethical standard of governance, the Government established a competitive assessment process conducted by an independent panel that was backed by expert technical and probity advice.

“That panel assessed the competing bids, assessed the quality of the technology and made recommendations that were followed to the letter by the Government.

“To all the people in regional and rural Australia who have contacted me and expressed their interest in new broadband services, you can be assured that the Government will vigorously defend any legal challenge to its decision so that high speed broadband services can be delivered without delay,” Senator Coonan said.

ENDS