MELBOURNE - Optus, owned by Singapore Telecommunications, has threatened to pull out of the bidding to build the national broadband network unless the federal Government extends the deadline.
As well, Optus boss Paul O'Sullivan has called for an assurance from the federal Government for "structural separation" between ownership
and service provision on the new network.
"We are willing to bid if we get the right assurances from Government," O'Sullivan said.
The Optus boss identified two major areas of concern for the telco which heads the so-called G9 consortium preparing to bid for the network.
Optus wants a five-month extension to the July 25 deadline from the moment when crucial information about existing fixed line infrastructure is released to the bidders.
Federal Government legislation which would force the nation's biggest telco, Telstra, to release that information has not yet passed through Parliament.
O'Sullivan said if the information became available only weeks or days before the bid deadline, there would not be a level playing field for all bidders.
"That's clearly not a fair go and it's quite ridiculous to expect that a serious player like Optus would participate in a tender on that basis," he said.
As well, O'Sullivan reiterated a frequent criticism that competition will suffer unless there was structural separation built into the ownership of the new network.
Asked repeatedly whether Optus would go ahead without those assurances, O'Sullivan said: "We need the assurances from Government to be absolutely confident of putting our reputation on the line.
"If we get those assurances we will absolutely bid."
The Government earlier this month called for tenders to build the network, expected to cost around A$8 billion, as part of a public private partnership initiative. The Government is aiming for the project to be completed within five years and will contribute up to A$4.7 billion of taxpayers' funds.
But O'Sullivan warned that unless flaws in the current tender process were fixed then Telstra, as monopoly owner of the infrastructure, would also end up setting prices and access terms to the network.
"Their track record on that is disgraceful," he said.
O'Sullivan also stepped up the rhetoric on the Government's decision to cancel the A$958 million bush broadband network contract it had with the SingTel and Futuris Corporation joint venture, Opel.
"We do feel that the termination was unfair," he said. "We're reviewing our legal rights."
- AAP
