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Australias Biggest telecom Company Walks Out of Billion Dollar National Networking Project

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Published on : Sep 28, 2015

Telstra, Australia’s  leading provider of mobile phones, mobile devices, broadband internet and home phones, has chosen opt out from contending for the US$56 billion worth tender for building one of the biggest construction contracts for Australia’s national broadband networks. The project will connect millions of businesses and homes in the country with the help of the Coalition's preferred networking technology of fibre-to-the-node.

The networking technology fibre-to-the-node, as well as the fibre-to-the-basement, will reuse the existing network laid with the help of copper cables and will become the central phone and internet line for nearly 4.5 million businesses and homes in the country by the year 2020. This will cover nearly 38 per cent of the National Broadband Network (NBN) footprint of the country.

It was initially hoped that Telstra could be instrumental in installing the new technology, which primarily relies on the network laid with the help of copper wires and log owned and managed by Telstra. The first fibre-to-the-node services of the country were also built by Telstra and launched in the previous week in Belmont.

However, Telstra walked away from the project of in June and it had decided not to compete in the second round of the construction project, which covers most of the major contracts for the remaining territories and states of the country.

NBN has said that the winners of the last major contracts for connecting premises across the country with the help of fibre-based technologies, apart from the hybrid networks connecting fibre optic and coaxial cables will be announced on Monday.

While it is not confirmed how much the last rounds of the networking project is worth, it was said by a NBN spokesperson that the bids were similar in value and size to those awarded in June.  Market sources state that the bids were worth anywhere between US$1.2 and 2 billion.