Government spends $43 billion to establish National Broadband Network

Tenders thrown out with Government going it alone through new company

The Federal Government will establish a new public company to build the next-generation National Broadband Network (NBN) across Australia.

In a press conference this morning, Prime Minister Kevin Rudd said it would spend $43 billion to create a new wholesale-only fibre optic network across Australia. The government-majority owned National Broadband Network Corporation will work in partnership with the private sector over the next 7-8 years to build the network across regional and capital cities.

The network will provide access of up to 100Mbps to end users and cover over 90 per cent of the nation.

Prime Minister Rudd said it then planned to sell-off its stake in the operations within five years of it being established. The decision represented a historic moment in Australia’s history, and was the largest infrastructure project ever laid out, he said.

“This injects a new player into the broadband market… a national, wholesale, open access broadband network,” he said. “It sets up a path for economic recovery and building a 21st century economy withy 21st century jobs.”

Rudd claimed the network would provide 25,000 jobs every year during the lifetime of the project, and up to 37,000 jobs during its peak. It will also add $37 billion to GDP, he said.

The decision follows month of negotiations with private consortiums under the NBN tender.

“We have tested the market but that has not produced an outcome which makes the best use of the taxpayers’ dollar,” Rudd said. “Right now we are dealing with a capital constrained world. We have acted on the advice of an expert panel... otherwise we wouldn’t be here.

“There were two options – sit back, or get on and do it. And we intend to [get on and] do that.”

The first step will see the Government outlay $250 million and build a fibre optic backbone in regional Australia, Senator Stephen Conroy said.

“The conditions are that it is open access and wholesale only,” he said. “We will have an implementation study over the next eight or nine months to work out the issues and challenges.”

The Government will also work with the Tasmanian Government on its proposal for high-speed services in that state and hoped to get things rolling by mid-year.

“We’re negotiating with the Tasmanian Government over the next 24 hours as to the rollout… we believe they are ready to go,” Conroy said.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags Senator Stephen ConroyKevin RuddNBNbroadband

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Nadia Cameron
Show Comments

Father’s Day Gift Guide

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?