ID :
185876
Wed, 06/01/2011 - 14:05
Auther :
Shortlink :
http://m.oananews.org//node/185876
The shortlink copeid
NBN mass rollout to start in November
SYDNEY (AAP) - The first mass rollout of federal Labor's $36 billion national broadband network will begin in November after NBN Co made a "value-for-money" deal to deploy the optic fibre component.
NBN Co has struck a deal with Australian construction company Silcar, a 50/50 joint venture between Leighton subsidiary Thiess and Siemens, to install the cable that will link premises to the network.
The contract is worth $380 million over the next two years, with the option of a further two years at an additional value of $740 million.
The agreement, announced on Wednesday, follows the controversial suspension of construction tenders in April because the prices offered by the then 14 vendors were too high.
NBN Co acting chief executive Kevin Brown said while the decision to suspend the tenders had been heavily criticised, he had always believed the company could get a better deal for the large scale rollout.
He told reporters in Sydney the new agreement was reached after eight weeks of intense negotiations and was within the company's price range.
"I'm delighted to say that the price we achieved is in line with our corporate plan," said Mr Brown, who is filling in for chief executive Mike Quigley, who is on leave.
"I wouldn't describe Silcar as gouging us but I was pleased with the price reductions we achieved."
Mr Brown would not comment on speculation that the contract was for only two years because the Coalition might win the next federal election and scrap the NBN.
But he said NBN Co did agree in its negotiations to assuming the risk of other infrastructure providers while Silcar would assume the risk of construction.
Silcar, which was involved in the construction of NBN's first release site in Armidale, will start construction in November.
The contract will cover Queensland, NSW and the ACT, representing almost 40 per cent of national construction activity planned over the next two years.
Almost 400,000 house are expected to be covered by this rollout, while 10 million premises are expected to be connected by the network's completion in 2012.
The agreement includes nine of the 19 NBN second release sites, including extensions to existing works in Kiama, Townsville and Armidale and new sites in Springfield Lakes, Toowoomba and inner northern Brisbane, Riverstone in western Sydney, Coffs Harbour, and Gungahlin in the ACT.
At least two more multi-million dollar construction tenders would be announced in August, NBN Co said.
Mr Brown also said the $11 billion deal with Telstra to use its underground cables was expected to be finalised within weeks, if not days.
Communications minister Stephen Conroy said on Tuesday that the entire project was running a few months behind schedule because of the drawn-out negotiations with Telstra and the suspensions of the tenders earlier this year.
NBN Co also announced a 10-year, $1.1 billion contract with Ericsson to build and operate a 4G fixed-wireless network for the seven per cent of Australia not covered by fibre.
The superfast fixed wireless broadband network would cover rural and regional areas by 2015, the company said.
NBN Co has struck a deal with Australian construction company Silcar, a 50/50 joint venture between Leighton subsidiary Thiess and Siemens, to install the cable that will link premises to the network.
The contract is worth $380 million over the next two years, with the option of a further two years at an additional value of $740 million.
The agreement, announced on Wednesday, follows the controversial suspension of construction tenders in April because the prices offered by the then 14 vendors were too high.
NBN Co acting chief executive Kevin Brown said while the decision to suspend the tenders had been heavily criticised, he had always believed the company could get a better deal for the large scale rollout.
He told reporters in Sydney the new agreement was reached after eight weeks of intense negotiations and was within the company's price range.
"I'm delighted to say that the price we achieved is in line with our corporate plan," said Mr Brown, who is filling in for chief executive Mike Quigley, who is on leave.
"I wouldn't describe Silcar as gouging us but I was pleased with the price reductions we achieved."
Mr Brown would not comment on speculation that the contract was for only two years because the Coalition might win the next federal election and scrap the NBN.
But he said NBN Co did agree in its negotiations to assuming the risk of other infrastructure providers while Silcar would assume the risk of construction.
Silcar, which was involved in the construction of NBN's first release site in Armidale, will start construction in November.
The contract will cover Queensland, NSW and the ACT, representing almost 40 per cent of national construction activity planned over the next two years.
Almost 400,000 house are expected to be covered by this rollout, while 10 million premises are expected to be connected by the network's completion in 2012.
The agreement includes nine of the 19 NBN second release sites, including extensions to existing works in Kiama, Townsville and Armidale and new sites in Springfield Lakes, Toowoomba and inner northern Brisbane, Riverstone in western Sydney, Coffs Harbour, and Gungahlin in the ACT.
At least two more multi-million dollar construction tenders would be announced in August, NBN Co said.
Mr Brown also said the $11 billion deal with Telstra to use its underground cables was expected to be finalised within weeks, if not days.
Communications minister Stephen Conroy said on Tuesday that the entire project was running a few months behind schedule because of the drawn-out negotiations with Telstra and the suspensions of the tenders earlier this year.
NBN Co also announced a 10-year, $1.1 billion contract with Ericsson to build and operate a 4G fixed-wireless network for the seven per cent of Australia not covered by fibre.
The superfast fixed wireless broadband network would cover rural and regional areas by 2015, the company said.
