The dominant telecommunications company in Australia has apparently taken itself out of one of the biggest broadband build-outs in the world. The Australian government said that Telstra submitted an inadequate response to its RFP for a proposed national network.
Australia plans to upgrade its largely copper network, installed by Telstra, the Australian equivalent of the old AT&T in the U.S. The country estimates that it may spend anywhere between $6 billion and $10 billion on the project.
The government agency overseeing the RFP process said there were five elements to the RFP, and that Telstra addressed only four, neglecting to include plans on how to serve the small and medium enterprise (SME) market. That automatically disqualifies Telstra from the competition for government contracts on the build-out.
Telstra insists its submission meets requirements.
The company has been at odds with the Australian government over many of the details of the plan, which is aimed at not only expanding broadband coverage but also increasing competition.
More Broadband Direct: