Soul-TPG drops out of Terria

Soul-TPG drops out of Terria

Summary: TPG-Soul today pulled out of the Terria consortium, saying the nation doesn't need a national broadband network.


TPG-Soul has pulled out of the Terria consortium today, saying the nation doesn't need a national broadband network (NBN).

Terria chairman Michael Egan
(Credit: Terria)

"Soul is not convinced about the immediate need for a national broadband network especially in the current economic climate," Soul executive chairman David Teoh said in a statement.

He said that Soul's customers currently had access to speeds averaging over 14Mbps, faster than the speed sought for the NBN.

"When you look at our ADSL2+ network performance and you take into account that Telstra has rolled out an ADSL2+ network around the country, there must be a serious question about whether there is any need for Australian taxpayers to make the sizeable investment the NBN network requires," he said.

Michael Egan said that Soul's withdrawal had not been a surprise since no representatives of the companies had attended any of Terria's meetings and there had been no engagement at all. "I've never met any of them," he told

"It won't affect our bid in any way," he said, since Terria never expected that Soul-TPG would contribute financially to the network. Terria would still be putting in a bid, he said, adding "we could well be the only bidder" with Telstra still adamant that it would not bid if separation was not taken off the table.

Egan did not agree with Soul's reason for dropping out. "It's like saying we shouldn't have rolled out an electricity network last century because some people were happy with lamplight," he said.

Topics: NBN, Broadband, Browser, Telcos, TPG

Suzanne Tindal

About Suzanne Tindal

Suzanne Tindal cut her teeth at as the site's telecommunications reporter, a role that saw her break some of the biggest stories associated with the National Broadband Network process. She then turned her attention to all matters in government and corporate ICT circles. Now she's taking on the whole gamut as news editor for the site.

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  • TPG pulls out of Terria

    So TPG/Soul reckon they've got 14 Mbps. I've got their ADSL2+ and average 1.2Mbps . Roll out some decent cable and lets join the developing world let alone the first world
  • Seeya

    I have to say Im glad. Saying the the country does not need a NBN, they should have decided this before joining a group like Terria. This is an example of poor management.

    Also, they struggle to supply a good product, and have poor support. I dont think they have much to contribute to a NBN anyway.
  • What this country needs

    What this country needs is a real NBN and to break Telstra into two parts; wholesale and retail. It has always been the best solution, it will remain the best solution but no politician has the guts to do it. Until that happens we will go on having these ridiculous debates and pissing money up against the wall.
  • All about ME!

    Maybe the best solution for you to promote your financial interests but perhaps not best for Australians.
  • This is political.

    TPG-SOUL was never going to come to the table after TPG's ill fated reverse takeover of SOUL.

    It is no secret that there's no love lost between David Teoh, and Michael Simmons (Former Soul CEO now with Terria) so it comes as no surprise that Teoh would wait until now put one over on Simmons - it's really about petty politics.

    The key point here that no one seems to have pulled Teoh up on yet is that the first N in NBN stands for 'National' - TPG's DSLAM's by no means 'national' because they cherry pick the most profitable exchanges, (as any business would).
  • Read the press release

    Mr. Teoh mentioned that TPG/Soul have their own DSLAM's and when combined with Telstra's ADSL2+ exchanges means the country is pretty well covered for 12mbs+ speeds already.

    I don't think he was implying that TPG/Soul covered Oz from top to bottom, just that there was already a viable solution in hand.

    I for one, won't be happy to pay $200 per month for what I get now for $70 just to enrich Telstra shareholders and enshrine their fixed line monopoly.

    Of course, main problem is a succession of brain-dead Minister's for Communication with hidden agenda's - like Conroy's Net Filter (Great Firewall of Oz) to allow censorship of the Internet by true assets to humanity like Family First. As Conroy said in the Senate only last week, if you're against the great firewall then you must be in favour of kiddie-porn - what a crock!
  • Good comment but missed one point

    The intent is not to charge people $200 for a $70 service, the intent is to enable more people to obtain the $70 service and to provide them with new services that would allow them to spend $200 or more.

    I look at my costs being $60 for 2 phone lines, one used exclusively for my security system which I also pay $45 for, I pay $110 for pay TV and $70 for my internet. That makes $285, I would be happy to pay this same amount to one company if they supplied the same or better services. In fact I would expect it to drop as my security service would no longer need a dedicated phone line and I would save more by not making automated security calls to the company.

    The country also only offers 12mbps+ speeds of about 20% of the population via ADSL2+ because you have to be quite close to the exchange to get those speeds, I live 1km from my exchange and probably about 2km away using the same path as the cable and I can get about 7mbps.
  • Mick

    Spot on !
    Mick ripped off Teoh big time and this is some minor attempt at payback
  • Used care salesman

    I worked at Soul for two years - Simmons is a used car salesman at best & a downright crook at worst.

    I have friends still there - Teoh doesn't get it either - he's a mum and dad ISP. Thats it.

    I have mixed feelings here, on one hand Telstra has to be split to really improve telco in this country, but I don't want Shifty Simmons getting any further in his sleazy career.