
IT has been some wait but the tender process for the Rudd Government's rather grandly named national broadband network is almost ready to proceed, now that Telstra has been given a tick on its network information.
The Government had wanted to name the successful builder in the next two months but will now have to wait until next year. It had wanted to have the build started by late this year but conveniently forgot about Telstra's hard-line tactics, its own lightweight department and the global credit crunch, which will make financing for those with skinny equity models.
As well, the Senate launched an inquiry when the Coalition still had control ahead of the June 30 changeover.
Welcome to the real world, Stephen Conroy.
The network information is likely to be provided in several batches, the first this week.
Bidders will be given the information they need for submitting tenders for the project and the $4.7 billion taxpayer subsidy that comes with it.
On the Senate inquiry, there were supposed to be hearings on August 19-20 but the deadline for submissions for that unnecessary gabfest - which will have no bearing on Government policy - has been extended until September 12.
At least Telstra has parted ways with Phil Burgess. The company is now in a position to conduct a complex and delicate negotiation with the Government on the possibility of building the network. It will have to hand over some concessions in return for what it wants.
As Telstra and Optus - with a little help from its seven friends - fight it out in the dusty halls of the Communications Department and the more polished hallways of Parliament House, the nation's third-biggest telecommunications company, Vodafone, has some big decisions to make.
Any new network that takes fibre closer to end users will feature heavily in the groups's thinking.
The Australian division of the world's biggest mobile company has certainly had a strong revival since Kiwi Russell Hewitt took the reins from the out-there Grahame Maher in 2005.
Hewitt and his well-regarded sidekick, marketing chief John Casey, the mobile operator's effective No 2, have radically cut back Vodafone's reliance on low-spending and unreliable pre-paid customers and bulked-up contracted users.
Having brought some stability to the company they will now be looking to the next step.
The broadband land grab is well and truly under way. It started in fixed line, where more than 50 per cent of homes now have some form of high speed internet.
Since Telstra launched its market-changing NextG network, everything has been mobile broadband. That move will only get more intense and popular when the next wave of mobile technology - known as long term evolution (LTE) - brings speeds of up to 50Mbps.
Vodafone's basic options to bulk up its business are to build something itself - which it is moving towards with the extension of its 3G network to 96 per cent of the population - buy another company, or do a long-term commercial deal.
There were some talk on Vodafone buying Hutchison's 3 network last year but it fell $1 billion short of the $4 billion asking price.
Last year, Vodafone and AAPT had a three-month trial of reselling fixed-line retail for consumers. It didn't work but on the business side Vodafone now sells resells AAPT broadband under its One Vodafone brand.
It may go further.
Twelve months after Paul Reynolds took over, Telecom New Zealand appears to be in worse shape than ever. Rather than AAPT being back on the block, it was never really off and could yet be sold off. Vodafone is an obvious buyer, as is Optus.
Fibre to the node could be the best answer, if it ever happens. Backhaul and capacity are the mobile sector's biggest issues. Every node can become a base station. Last-mile access over wireless will be far far cheaper than copper or more fibre. It will completely recast the economics and the shape of the fixed-line sector but mobiles as well.
Now, if only Conroy can get a deal done.
sainsburym@theaustralian.com.au
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