OMEN
04-06-2009, 04:19 PM
THE Government may have to go it alone and build its own national broadband network, industry sources say, ditching private bids to construct the multi-billion-dollar project.
The successful tenderer for the $9 billion-plus project, a key election commitment, is expected to be announced as early as tomorrow, The Australian reported.
Communications Minister Stephen Conroy has declared that building the network will be "one of the largest infrastructure projects ever undertaken by any Australian government". But large projects come with large problems, and the story of the NBN has already been fraught.
Tenderers face issues of access to capital in a global financial crisis, fears the project specifications have been too politically prescriptive and threats of legal action from Telstra.
"The details of the outcome of the bidding process are incredibly tightly held," one industry consultant said. "There are a number of different stories going about. One says the Government could do something itself. "Originally, the NBN was going to form part of the stimulus package. It didn't get done in time. Then it was supposed to be part of the infrastructure package.
"They might dress it up - digging trenches and all that - as a really big job-creation project."
The source is adamant that going alone has been considered: "The Government could build out the project over five years and then have an asset it would sell into the market space. Labor people would love it. 'We're going back into telcos,' they'd say. Voters wouldn't mind, either. Telstra's not exactly the flavour of the month out there."
Telstra was excluded from the NBN process in December. There are fears the company may sue to stop access to its infrastructure.
The Australian.
The successful tenderer for the $9 billion-plus project, a key election commitment, is expected to be announced as early as tomorrow, The Australian reported.
Communications Minister Stephen Conroy has declared that building the network will be "one of the largest infrastructure projects ever undertaken by any Australian government". But large projects come with large problems, and the story of the NBN has already been fraught.
Tenderers face issues of access to capital in a global financial crisis, fears the project specifications have been too politically prescriptive and threats of legal action from Telstra.
"The details of the outcome of the bidding process are incredibly tightly held," one industry consultant said. "There are a number of different stories going about. One says the Government could do something itself. "Originally, the NBN was going to form part of the stimulus package. It didn't get done in time. Then it was supposed to be part of the infrastructure package.
"They might dress it up - digging trenches and all that - as a really big job-creation project."
The source is adamant that going alone has been considered: "The Government could build out the project over five years and then have an asset it would sell into the market space. Labor people would love it. 'We're going back into telcos,' they'd say. Voters wouldn't mind, either. Telstra's not exactly the flavour of the month out there."
Telstra was excluded from the NBN process in December. There are fears the company may sue to stop access to its infrastructure.
The Australian.