Government takes over NBN

The Sydney Morning Herald is reporting to day that Telstra and OPEL have failed to secure a contract to roll out a national fibre network in Australia. This is potentially good news. The same political logic that says private business is the best and most effective choice for a service provider also says that there’s no way any business can provide broadband to the bush without losses. It makes no business sense to roll fibre out to rural areas. In Australia at least, the Internet should be seen more like a utility alongside water and power. Given our vast geographic arrangement, only the government has the capacity to provide this for our entire population. But have they got the tech smarts to pull it off?

In a shock decision this morning, the Prime Minister, Kevin Rudd, announced that none of five bidders including Optus and Melbourne group Acacia for a national network were up to scratch.Under the new plans, the funding for the network offering speeds of up to 100 megabits per second will be provided by a national broadband network corporation in which the Government will be the majority shareholder.

$15b national broadband network (NBN) on way

This entry was posted on Tuesday, April 7th, 2009 at 9:19 am and is filed under links. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Government takes over NBN”

  1. Just Another 24 Hours Says:

    Australian Federal Government Announces the Result of its National Broaband Network nbn Tender…

    The Australian Federal Government will establish a public private partnership to roll out ‘the largest investment in infrastructure’ in Australia’s history. In five years time the Government will sell down the company as a wholesale a…

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