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SingTel's NBN funding hole: Cartoon

cartoon SingTel-owned Optus has not yet clarified many details of its proposal to build the National Broadband Network, including exactly how it will be funded. In this cartoon, Telstra pushes its view of the situation.

SingTel's empty pockets

(Credit: Mikko's cartoon is re-published with permission
from his Now We Are Talking blog, blogtoon.)

What do you think about the issue? Post your comments below or drop us a line.

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Talkback 6 comments

    Isn't there other bidders too? Terry -- 10/12/08

    As part of the bidding process all bidders have a gag order preventing them from revealing details of the bid, so the fact Optus hasn't revealed any details isn't at all surprising.

    The only bidder (if you'd call them that) that hasn't adhered to that is Telstra, and they seem to be completely focused on the Optus bid and ignoring all others.

    Maybe someone should point out to Telstra that Optus isn't the only other bidder, and it's probably not the bidder that's the most serious threat to win the NBN funding either.

    Telstra bypassed the challenge by being greedy Mel Sommersberg -- 10/12/08

    What is so great about Telstra begging for twice the amount of money on offer by the Commonwealth? At least Optus is working the problem of how to pay for the investment themselves. Telstra, once again, just puts their hands out and along with that they expect to nett a 28% ROI.

    To me that means that with Telstra, the people pay twice.

    One choice only Mel. Sydney Lawrence -- 11/12/08 (in reply to #320118590)

    Mel ignoring your silly fabricated anti Telstra investment figures at least admit that Telstra has the capability to deliver a first class NBN to Australians. Mel in the fair dinkum department Axia is a dwarf company with very small roll-out experience.

    Consider Mel the 2008 Axia financial report.

    Revenue 63 million.
    Expenses 17 million.
    Net income 8 million.
    Share price down by half.

    Mel do these figures suggest that Axia should be granted the responsibility of building one of the biggest NBN roll-outs ever attempted in the world. If our Government was to grant other than Telstra the build and it all goes wrong they would expect retribution at the next election.

    Shareprice down by half - sounds like another Co. we know... Mel Sommersberg -- 11/12/08 (in reply to #320118635)

    What about Telstra's share price, down from a peak of over $8.00 down to a low of about $3.90 and hovering very close to that at the moment.

    I have no doubt that Telstra could physically deliver the fibre network and I've never ever said otherwise. However you constantly claim that Telstra is the only comany that can and that is sillier than anything else uttered in this thread.

    Regardless of who wins the bid, the winner is likely to choose from three or four prime contractors who will then forward work to the same subcontractors that'd likely get work if Telstra was the winning bidder.

    The fact is, Telstra (including Telecom, AOTC, PMG, etc) have never performed large scale network construction on their own. Conduits and pits are made by cement companies, exchange equipment by companies like Ericsson, Alcatel and Nortel and formerly by Standard Telephones & Cables and Amalgamated Wireless.

    Chances are, Telstra workers won't even be involved with installation and commissioning this time around.

    Logical choice.... Anonymous -- 11/12/08 (in reply to #320118670)

    What Sydney is trying to say is that Telstra is the logical choice.......

    but as mel says joe -- 11/12/08 (in reply to #320118683)

    anyone can hire the contractors telstra would use to do this NBN

    the reason syd is saying go telstra is because they can get the finincial backing...
    but who ever is awarded the tender is going to have the biggest fastest, near -monopoly wholesale network... If i was a bank I'd be happy to lend the money needed to buy it, its a near certainty win

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