Optus: We will ditch FTTN
May 2008 - Optus has threatened to pull out of the fibre-to-the-node (FTTN) tender process unless the government approves operational separation for Telstra and a delay to the bid deadline, while Telstra has threatened to withdraw if it does.
Speaking on ABC, Optus CEO Paul O’Sullivan said without an extension to the July closing date, the tender process will be unfair. The Optus CEO is now calling for an extension of at least five months from the date the network information is provided.
As well as the delay to the tender process, O’Sullivan wants to see operational separation become part of the bid process. Without structural separation, Telstra could end up with monopoly control over the infrastructure while also setting prices and access terms to the network, according to O’Sullivan.
The “network separation” conversation will most probably occur during the negotiation stage of the tender. The threats of withdrawing will not have a significant impact to the tender process or the other parties bidding. Optus and the G9 need to put up the required bond, to exemplify that they are a serious contender for FTTN; O’Sullivans comments seem to only be a hopeless effort in trying to obtain structural separation from Telstra.














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