Optus Caught in the Coonan-Conroy Crossfire

Optus Caught in the Coonan-Conroy Crossfire

By Nathan Statz

October 25, 2007: We’ve crossed into the realm of less then one month remaining before the federal election and the broadband mud flinging has continued to escalate, caught in the crossfire this week is Optus’ head of technology and planning, Peter Ferris.

Ferris made a number of comments at the WiMax summit in Sydney which were seized upon by Communication Minister, Senator Helen Coonan and included in an official Liberal Party press release. The comments related to Labor’s broadband plan and the feasibility of rolling out Fibre-To-The-Node (FTTN) to 98% of Australia.

“There is no silver bullet. There is no single technology solution to cover a country the size of Australia. You have to use the most appropriate technology for the most appropriate area.” Ferris said.

Senator Coonan used the opportunity to push Liberal’s own broadband plan by claiming “The Coalition’s new $1.9 billion state-of-the-art network is using a mix of fibre, ADSL2+ and WiMAX to extend high speed broadband to 99 per cent of Australians within two years at a retail cost between $35 and $60 per month.”

This was followed up by an attack on Labor’s proposal which Coonan claims will be “upwards of $100 per month, will leave one in four people stranded, and won’t even be turned on until 2013, four years later than the Government’s broadband network.” She said.

Labor’s Shadow Communication Minister, Senator Stephen Conroy hit back at Coonan’s attack, explaining that “Labor has never indicated a price because we don’t believe it’s the job of politicians to set a price on a market economy. Labor believes it should be a negotiation between the ACCC and the winning bidder.” He said.

In regards to the Labor network leaving one in four people stranded claim, Conroy explained that “On coverage Helen Coonan has been touting a 75% figure for some time, she’s never yet justified how she concocted it, its just desperate claims by a desperate minister who’s own broadband plan is coming apart at the seams” he said.

Conroy also dismissed the 2013 figure, claiming the plan has always been too roll the network out “Street by street and suburb by suburb as it happens, its not a long piece of cable that you wait until 2013 before flicking the switch, all across Australia we will be upgrading nodes, exchanges and pillars and will turn them on as they're ready, that is how it will work.” He said.

Optus’ Chief Executive Officer, Paul O'Sullivan attempted to distance the company from the pre-election fireworks by explaining that “"Optus and the G9 believe they can work with the broadband plan of each major party. If Labor wins Government, Optus as part of the G9 intends to tender to operate the network under Labor's plan, consistent with the company's belief that the plan can be delivered. Similarly, Optus and Elders are well advanced in planning the OPEL network, consistent with commitments given to Government. Optus welcomes the fact that both major parties are treating broadband as a priority area." He said.

Comment on this story.