News Service from House Harris

Fed: Telstra threatens to pull out of NBN project=3D2

Mr Quilty said Telstra was ready and waiting to build a national broadband network, having put three separate proposals to the previous government,which were scuppered because of regulatory uncertainty.

The telco says conservative estimates indicate delays in building the network cost Australia200 million a month in lost productivity.

"The NBN needs many billions of dollars of new investment, a labour force of several thousand, and access to the world's leading broadband technology suppliers," Mr Quilty said.

"Telstra believes the building of the NBN should proceed as expeditiously as possible and it is time to make the necessary decisions to enable this investment to occur.

"Long and delayed processes are causing significant uncertainty and are holding back the industry and the nation."

The government had planned to have finalised the tender process for the multi-billion dollar project by June this year, with construction of the network to have commenced by the end of 2008.

It now seems more likely construction of the fibre-to-the-node network willnot begin until the end of 2009.

The deadline for bids has already been pushed back to November 26, after which a government appointed expert panel will be given six weeks to considerthe proposals.

The panel will then have a further two weeks to consider advice on the proposals from the Australian Competition and Consumer Commission before the government announces its preferred bidder.

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