Monday, December 15, 2008

The Government, Telstra, and Australia’s proposed National Broadband Network

Today’s Federal Government decision to exclude our largest telecommunications provider Telstra, from the national broadband network tender process should come as no surprise. Indeed the reasoning provided - that its November 26 proposal did not include a plan on how to involve small and medium-sized enterprises - is nothing short of trifling and underscores what has been a rocky relationship between the Telco and Government.

I cannot see the sense of totally excluding Telstra from the process; regardless the Federal Government has treated the company poorly and this raises questions of integrity. Perhaps the Government sees this as payback for Telstra’s treatment of ALP mates as the companies present and past approach to matters IR are not in line with those of the Governments or it’s union bro’s.

Telstra chair Donald McGauchie said this morning:

Telstra is the only company to have submitted a proposal with a real financial commitment - $5 billion -” adding, “Telstra is the only company with the existing network, technical knowhow, world leading vendor, skilled workforce, established wholesale systems and proven track record of building world class networks.
Proven track record or not, if Conroy and the Government's decision smacks of any resentment, that is politics, then we shall all suffer for it - you cannot strengthen the weak by attempting to hurt the strong.

Related: How Bloomburg reported it

See also: Why The Federal Government Is Stuffed Without Telstra

1 comment:

Janine I said...

I cannot see the sense of totally excluding Telstra from the process; regardless the Federal Government has treated the company poorly and this raises questions of integrity. Perhaps the Government sees this as payback for Telstra’s treatment of ALP mates as the companies present and past approach to matters IR are not in line with those of the Governments or it’s union bro’s.

As a Bid & Tender Manager for a large corporation I can tell you this for free... if your tender response is non-compliant, your tender is not compliant (i.e., it has not met all tender requirements, or deigned to call out which requirement it will not / cannot meet in a non-compliance table).

The tender process is there to give all respondents an even playing field. As someone who supposedly believes in competition, would you have it any other way?

Or are you simply after cheap partisan political points?

(Disclaimer: I am of no political persuasion, other than that party that offers me the best deal on the day for my vote - but I do like honesty)