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Consumers to benefit from alternative FTTN network

14.07.2006
A consortium of telecommunication carriers led by Optus, has unveiled plans for an alternative national FTTN network in Australia that could double consumer benefits. But there's a catch, they still need Telstra.

The details were outlined in a report conducted by Allen Consulting Group and dandolo partners titled A Competitive Model for National Broadband Upgrade.

The group of nine carriers, comprising Optus, AAPT, Internode, iiNet, Primus, Macquarie Telecom, Powertel, Soul and TransACT would form an independent umbrella company named SpeedReach to build and run the network.

The consortium estimated the total cost of the rollout at A$4.1 billion (US$754 million), one billion more than Telstra's proposed cost for its high-speed network. The added costs would allow the network to reach five million homes and businesses if jointly constructed with Telstra.

However, the report noted that without Telstra's participation, those numbers would dwindle significantly.

"It would be much better for everyone if Telstra supported the plans, but it is still doable without their support," said Allen Consulting Group director, Gerome Fahrer.