Conroy confirms: Telstra's out

Conroy confirms: Telstra's out

Summary: Communications Minister Stephen Conroy this afternoon confirmed Telstra had been kicked out of the National Broadband Network bidding process, but that all the other bidders were still in contention.

SHARE:

Communications Minister Stephen Conroy this afternoon confirmed Telstra had been kicked out of the National Broadband Network bidding process, but that all the other bidders were still in contention.


(Credit: ZDNet.com.au)

"The government's NBN process has always been bigger than Telstra," Conroy said.

"The request for proposals (RFP) was specifically designed to give proponents flexibility in preparing their proposals, and there are very few mandatory requirements," Conroy said in a statement, noting Telstra did not submit a small to medium enterprise participation plan as the others — Acacia, Axia, Optus, TransACT and the Tasmanian Government — had all done.

The minister said there were four other mandatory requirements:

  • That proposals be written in English
  • That Australian legal units of measurement were used
  • That proposals include a complete and signed proponent's declaration
  • And that proposals for more than one state or territory must include a proposal for all states and territories

The government's NBN process has always been bigger than Telstra.

Stephen Conroy

"There was nothing to stop Telstra from submitting a complete proposal and competing vigorously with other proponents in this process," Conroy said, claiming the RFP was a level playing field. "However, the Telstra board sought special treatment by proposing its own process."

"Telstra had more than enough time and resources to fully understand what was required of proponents in this process," the minister added. "Telstra's Board will have to explain to its shareholders why it has decided to sideline itself from a process that will shape the Australian communications sector for the next decade."

Topics: Government, Broadband, Government AU, Telcos, Optus, Telstra, NBN

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

38 comments
Log in or register to join the discussion
  • laughable man

    Actually I think Mr Conroys rather cocky comments will come and bite him in the ass when he's mired down in trying to actually get his NBN rolled out.

    Fair enough, exclude away, but you've just excluded australias chance to get a top notch broadband network instead of something half assed as well.
    anonymous
  • also..

    also I hate to be the one to mention this, but im sure that the issue is more with lobbying from another telco (or two) rather than an actual reason. Sad isnt it.
    anonymous
  • There is Hope

    I believe that this presents some hope to some real bids like Axia or Acacia.

    Lets hope they choose the best solution, that includes a futureproof network with decent access prices.
    anonymous
  • Not surprising

    This was always going to happen, let's hope that the best bid is now chosen from those who actually submitted what they intended to do.
    anonymous
  • Pants down

    Thank god Telstra is not going to build the NBN... they can't even follow the bid instructions.

    It is clear that had the Government turned a blind eye to this non-compliant proposal, Tesltra would have taken that as a licence to ignore any or all requirements in the future.

    They are either stupid, incompetent, or thought they could bully the Government.

    Telstra shares are down 12% today. The market has spoken. Telstra tried to be too clever by half, instead they have been caught with their pants down.
    anonymous
  • Telstra Out

    Thank God Conroy has the guts to stand up to that Mexican American Bully.

    While he is at it, he should get the immigration Minister to pull Sol's work visa and deport him.

    This will send a message to all foreign thugs that when you come to Oz you play by our rules.
    RichardC-2d29a
  • Australia will be a laughing stock

    Telstra's network will be the superior and the only one who will cover majority of Australia, where the NBN will probably not start and Telstra will be freed from the ACCC regulations and will allow to offer cheaper prices and the competitors can not complain.

    While Telstra's network is being updated the rest of Australia who will rely oon NBM will still be waiting and left behind.

    SHAME AUSTRALIA SHAME
    what a joke
    anonymous
  • I wonder

    Gotta wonder in the back of your mind if it's also because Telstra didn't accept the Internet filtering trial:)
    anonymous
  • ...Huh?

    Telstra will NEVER be free from the ACCC and there are CHEAPER alternatives out there on the market that offer the same services, if not better, already.

    It's about time Telstra got slapped on the wrists. Just because they're a telco giant does NOT give them the right to lay down their own set of guidelines when everyone else has complied with those set by the Australian Govt.

    Remember people the Australian Govt. has a LOT more power than a privatised conglomerate who charge their customers grossly extortionate fees for such poor quality service, not to mention they've reneged on countless promises and contracts.

    Now THAT'S a joke!
    anonymous
  • Forget about court cases now

    Let's just wait until they attempt to disconnect the copper in the ground (node to customer) from the Telstra network. All hell will break loose.

    Looks like this will not be completed before 2020.
    anonymous
  • Telstra Out

    Here here! Get the lot of them out of here now. Pure corporate poison the lot of them....
    anonymous
  • .. thank god for that

    Final y some justcice int her world. Telstra have for too long bullied everyone and anyone.

    Telstra has hamstrung this country's broadband network for years, when all along they could have given us decent speeds, but instead decided to cream the top for a while.

    Sucked in is all I can say.

    If they wish to complain, perhaps they should call a help desk - just make sure it has one of those automated voices so that they go round in circles for hours on end wasting their day and their time...... On second thoughts, just call them selves.
    anonymous
  • Pants down

    "They are either stupid, incompetent, or thought they could bully the Government."

    And you don't consider that they have been subjected to any bullying by the Government?

    You have to be kidding. Why is it that so many of you Anti-Telstra commentators are so "one-eyed" !
    anonymous
  • laughable man

    Stephen Conroy should be ashamed of himself. I believe he has dismissed Telstra's bid as being non compliant, simply because it was too concise, did not take up the 3 filing cabinets of paper he would have preferred, and therefore has not allowed him an extended period of time to weigh up all the alternatives. And because it made him look like the incompetent minister, he has now proven to be, he simply spat the dummy back at Telstra, that he considered had been spat at him.
    anonymous
  • @ Laughable man

    If you are neither blind nor illiterate, how can you believe a complete fallacy as to why they were rejected?? It says right there in plain text - nothing to do with being "concise" (more like half arsed approach)
    anonymous
  • @ Pants down

    "And you don't consider that they have been subjected to any bullying by the Government? "

    the Howard government basically gave them the freedom to become the monopoly they are today - everything is reciprocated and if you don't agree with that you are the one being 'one-eyed'
    anonymous
  • @ also

    no, what's SAD is people not accepting the blindingly obvious reason why they were rejected. Nothing to do with lobbying, just plain stupidity.
    anonymous
  • @ laughable man

    I sincerely hope you're still around here when someone else is awarded the NBN and everything turns out just fine. Complete opposite of what all the Telstra propaganda will have you believe
    anonymous
  • Why defend Telstra?

    While we know that every big corporation is there to 'make money', Telstra have been screwing every last cent out of their clients for far too long (esp. Ma and Pa Aussies who stay with them because they don't know any better).

    Some real competition is what is needed right now and this may well do the trick.

    Sure, Telstra currently has the fastest network and most coverage nationally, but does that mean no one else should have the chance to provide an even better network?

    Actually while we're at it, let's limit all internet plans to 6 months or less and let some real competition happen?
    anonymous
  • Can't defend Telstra.

    Telstra is one of the worst examples of profiteering I can think of. Lousy services at mindboggling prices, especially outside major cities where there is no alternative. Eg, extra data charges for ADSL of $150/GB on a lousy 200MB plan! Why are they allowed to do it? Telecomunications are essential infrastructure, not a luxury. The government must step in and stop this scalping, as they have for sports and entertainment. Forcing customers outside of cities to maintain a landline when VOIP is perfectly acceptable on naked DSL is probably their lowest act. Unfortunately the public are not texchnically savvy enough to appreciate what Telstra is doing. Billions of dollars in profit every year, yet keeping Australia using tin cans and string. Shame on you Telstra.
    anonymous