Telstra will not build the $4.7 billion National Broadband Network! The Government’s expert panel has made extraordinary headlines by making a decision to reject their non-compliant bid based on a technicality. Telstra was dumped from the process on grounds that it did not meet a section of requirements surrounding a ‘small to medium enterprise plan’ which was a mandatory part of the NBN criteria.
In the biggest Broadband news to hit the industry this year, Telstra boss ‘ Sol Trujillo’ may have called his last bluff by submitting a pitiful 12 page NBN proposal to the Australian government. Trujillo was believed to be somewhat bewildered by the decision as he had not yet had any correspondence with Minister Conroy, thus receiving the news secondhand.
“We are a bit surprised at taking this action on a triviality, which we are very clear in our minds, we were fully compliant in the language of the RFP in terms of how we handled this matter. I don’t want to speculate beyond that, because we’ve not had any conversation with the Minister or the appropriate people involved yet,” – Sol Trujillo
Many Australians have been made buoyant by the sobering decision to dump Telstra from the NBN process as they believed the incumbent was too powerful in holding out competition; slowed down innovation and market growth; and charged extremely high prices for telecommunication services.
On the surface, this latest decision by the government is statement of strength and unity which suggests they will not be taken lightly with the national broadband network process, and furthermore, will endeavour to create an ‘open access’ network with ‘fair’ regulatory conditions for Australian consumers along with an equal playing field for Industry competition.
At the same time this decision will also force Telstra to re-evaluate their strategy on the NBN. This may included succumbing to the NBN process guidelines and submitting an eligible comprehensive proposal, if the door is still open that is? Or possibly considering business (on their own) beyond the NBN.
If this latest slap in the face doesn’t awake the arrogant giant, it’s quite likely that Telstra’s shareholders will, or the perhaps the possibility of declining stock value? You’re move Telstra, the ball is well and truly in your court now.
