TransACT wants NBN bid costs back

TransACT wants NBN bid costs back

Summary: Unsuccessful National Broadband Network (NBN) bidder TransACT today said it felt the government had unfairly put it and other bidders out of pocket for a solution TransACT did not believe was any better than the one it had put forward.


Unsuccessful National Broadband Network (NBN) bidder TransACT today said it felt the government had unfairly put it and other bidders out of pocket for a solution TransACT did not believe was any better than the one it had put forward.

(Australia Dollars image by InfoMofo, CC2.0)

"We're not a large company, but we've spent a lot of money," TransACT CEO Ivan Slavich said. "It'd be nice of them to give us some of the money we spent on this process." He said the telco had spent around $1 million on the proces.

There wasn't a legal aspect to the telco's claim, but Slavich believed the government had an ethical imperative to hand back some of the cash.

He would have understood if one of the bidders had won, he said, since that was how the game worked. However, having the government whip the prize out from under the bidders' noses smarted, he said, especially since he didn't think the government's proposal was any better than what his company had been offering.

"In our opinion, ours would have been lower cost, same speeds and less time," Slavich said.

TransACT had been offering fibre to the kerb with category five cable going to the home, Slavich said. TransACT was also already rolling out fibre-to-the-home in some premises in the ACT. "The request for proposals didn't want fibre-to-the-home. If it did, that's what we would have put forward," he said.

The price users would face also troubled him. "$43 billion to roll out this network is a lot of money. I just wonder what the access price would be." He believed that it would be much higher than bidders had been proposing in their plans, unless the government subsidised it.

Despite his disappointment at the government choosing none of the bidders, TransACT would look to be a part of the new process. The government has released a discussion paper on regulatory issues for the future. "We'll certainly respond to the draft discussion paper," Slavich said. It was also possible that the company would look to be part of the government's consortium, he said.

He said the government's decision would certainly affect the way that TransACT rolled out its infrastructure over the next while. "We don't want to build infrastructure and find it's obsolete," he said. Over the next seven to nine months as the government sets up the consortium, TransACT would keep an eye on it to see how the roll-out would affect TransACT's assets.

Topics: NBN, Broadband, Government AU

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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  • Cry Babies

    I will never invite TransACT to bid on any of my business. Last thing I want is to get a bill when they don't win.

    Face reality, you bid knowing you would probably not win. The only difference is you were not beaten by another bidder, you were beaten by the actual poor quality of all of the bids.
  • You shouldn't have been given a chance

    What connection speed are you offering with your network? Home pack 1000: $69.95,1Mbps download/128kbps. Is it optic fibre? What a joke.
  • Agreed

    Totally agree with Anonymous, I currently pay less, ( $49.95 ) and get faster speeds ( avg 3.5 mbs download ) Why would I pay $20 / month more for 1/3 less speed?
  • Poor little darling - wanna tissue

    There are TELCO'S and there are telco's.
    Frankly - small - half baked enterprises that thought they could get their business boosted by my taxpayer funds were correctly left out.

    get a grip idiot - the rules were clear - an up front - non-refundable bid fee.

    Suck it up precious.
  • Money Back

    If he gets his money back then Telstra shareholders might also have a case.
  • re Poor little darling - wanna tissue

    More nonsensical drivel from the serial creep who keeps changing his name. But his DNA stands out like dogs balls, so we all know who he is. Why don't you grow up, you stupid idiot.
  • Let the good times roll!

    Nah give him whatever he wants. Big Kev can just run the money printing presses in Canberra for him like he does for his popular "cash splashes".

    Latest rumour from Canberra is the baby bonus is going to $20,000 per bub and a jackpot of $50,000 for twins.

    Only ones missing out are the old age pensioners, never mind they wont be around long. Kevvy hopes not to the next election anyway.

    Oh! buy the way just heard Kev has ordered an A380 to top Baracks 747.
  • TransACT is a RIP OFF

    TransACT’ entire network, including Neighbourhood Cable has the most excessive pricing it's appalling, let's look at NCable’ 2Mbps speed, with 25GB downloads, around $90 per month, for a 2Mbps speed..... are you kidding?!!
  • Each of your comments are missing TransACT's main point. They put in a BID for the NBN. Thats all fair enough and clear, the problem here is that no-one else won the BID, the Government backed out completely and said well, thanks guys... but uhh.. we'll kind of do something completely different ourselves. To all those that spent millions, too bad too sad, we actually had no real intention to accept anyone, just thought we'd suck up some of your money and get some tax dollars back.