NBN - Everything you need to know about the National Broadband Network

Acacia up for national NBN bid

Further details have emerged about Acacia, the shadowy bidder for the government's $4.7 billion national broadband network (NBN), including the fact that it is planning an Australia-wide roll-out that would not be confined to a single state.

Fiber installation image by
macguys, CC2.0

When reports first surfaced of a group called Acacia lodging its $5 million bond to be eligible to bid for the network, the word was that its submission would be a state-based bid, like TransACT's for the ACT or the Tasmanian Government's for its own state. Almost no media attention has been given to the group, which is led by prominent local businessmen.

Recently, however, industry sources have indicated that Acacia is very much a national bid, one for which the leg work has quietly been coming along. Acacia has been talking to "all the right people" such as network hardware suppliers, according to sources, but its modus operandi has been extremely secretive, with tight non-disclosure agreements in place.

If Acacia were to win a bid, it would not only need an impressive array of partners to roll out the network, but also to operate the finished product. As with the other bids, talks surrounding these lucrative deals have been kept closely under wraps.

Directors of the Acacia Australia Group are Australia-Israel Chamber of Commerce chairman Leon Kempler and former Telstra executive Lawrence Paratz, according to the Australian, with investors including Steven Skala, vice-president of Deutsche Bank in Australia as well as directors from KPMG and the founders of employment website Seek.

In its regulatory submission regarding the network, Acacia seemed to lean closer to Terria than Telstra, with the group convinced that separation was necessary in the form of a rule that the new network owner should only be able to trade in wholesale and not sell retail broadband.

It also wanted assurances that the owners of existing copper networks such as Telstra would be forced to give access to the network builder, as well as amendments to communications legislation which would prohibit all carriers except the national broadband network provider from rolling out certain infrastructure, to protect the bidder's investment.

Acacia director Leon Kempler was unavailable for comment at the time of writing this article.

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Talkback 41 comments

    Fabricated story ! Anonymous -- 01/10/08

    Cmon Suzane,

    Stop making up rubbish.

    "Acacia director Leon Kempler was unavailable for comment"

    But somehow they require exactly the same absurd conditions Terria need and have revealed they want!

    What's absurd? Anonymous -- 01/10/08 (in reply to #320113249)

    Umm what exactly is absurd about the conditions Terria or Acacia are proposing? They seem like reasonable conditions to me.

    @whats absurd Anonymous -- 01/10/08 (in reply to #320113261)

    umm because some hate telstra so much, all sense goes out the window and anything else will do. they will believe anything, in hope, rather than being sensible.

    absurd 1, from above. If Acacia were to win a bid, it would not only need an impressive array of partners to roll out the network, but also to operate the finished product.

    so basically they want to be awarded the NBN, to grab the $4.7bill. but not really have much to do with it.

    absurd 2 from above. It also wanted assurances that the owners of existing copper networks such as Telstra would be forced to give access to the network builder, as well as amendments to communications legislation which would prohibit all carriers except the national broadband network provider from rolling out certain infrastructure, to protect the bidder's investment.

    they want a free ride on telstra and *anyone elses networks* with no competition.

    under these conditions me, sydney lawrence, james bell, sjt, lord watchdog, terry and all the other anonymous's should pool our resources and put in a bid. obviously the only work involved is holding out your hand and counting the $4.7bill. we can do that guys, right, hehe.

    here's an interesting and equally believeable thought. why not call mcgyver in. he can make an nbn out of a tin can, condom, bobby-pin and picture of graham samuels.

    when will this facade all end. probably never whilst fools believe this cra*

    @the smart fella Anonymous -- 01/10/08 (in reply to #320113264)

    Yes, and let me guess we should be entrusting Telstra, the true blue Aussie company with our network right?

    You're so obsessed with your employer (Telstra) winning you're not even open to the idea of another company putting in a better bid that would potentially benefit Australians more. Let's face it I must be right because you're already bagging Acacia despite knowing virtually nothing about their bid.

    "they want a free ride on telstra"

    umm and you care because..?

    @smart fella Anonymous -- 01/10/08 (in reply to #320113268)

    no we should be awarding the nbn to telstra [not trusting them, none of them can be trusted] just to get it done. is that really that difficult to understand.

    if you cant see a free ride by one mutibillion dollar company, even on another multibillion dollar company isnt right well you need a quick lesson in ethics. before you start the employee, shareholder cra*, forget it, i am neither. im just sick of waiting, either build it or scrap the idea.

    no, i'm bagging acacia on the information supplied in the above article.

    so please read my above first paragraph again or for **ck sake just call mcgyver.

    Yeah right Anonymous -- 01/10/08 (in reply to #320113269)

    "before you start the employee, shareholder cra*, forget it, i am neither. im just sick of waiting"

    Bullsh*t you don't work for Tel$tra. Letting them build the NBN is not going to provide any benefits to you otherwise.

    "no, i'm bagging acacia on the information supplied in the above article.:"

    You're bagging them based on the fact that they want the network owner to only be able to provide wholesale services? Geez that's a logical reason for bagging them.. troll

    Just like you mcgyver -- 01/10/08 (in reply to #320113272)

    don't work for Optus.

    There now prove me wrong or call me a liar.

    You are just another anonymous wan*er that can not come up with a solid argument so you try the fear, uncertainty and doubt routine.

    @yeah right Anonymous -- 02/10/08 (in reply to #320113272)

    tttt fellator

    just because you are obviously paid by the tttt to make ridiculous comments, doesnt mean everyone else is. i am not paid to discredit or talk anyone up, i also am not an employee, but you believe what you want bright spark, because its obvious from how easily you have been misled by acacia, terria, the wiggles or whoever will say something against telstra which you can latch onto, like the parasitc worm you are, that you are low on brain power.

    if you believe terria or acacia are legit and not just spoiling to get the best deal they can, once telstra win and build, well you are obviously a dunce beyond compare.

    say hi to the butt of egan, forman, osullivan or whoever you will sucking up to today ***kwit and then bring on mcgyver.

    Just admit to it and you'll feel better Anonymous -- 02/10/08 (in reply to #320113298)

    And you have comprehensive knowledge of Acacia's or Terria's plan? And even if these consortiums were simply "trying to get a better deal" WTF do you care? By a better deal I assume you're referring lower access costs, more transparency, possibly stronger separation which while may benefit them will also benefit all of us (i.e consumers)?

    You're not doing your employer any benefit through your posts, and only highlighting their poor employment practices. Now get back on the phones before your to catches you again.

    @just admit Anonymous -- 02/10/08 (in reply to #320113310)

    tttt fellator, please come up for air, youll gag.

    Interesting Sydney -- 01/10/08

    For the mentally retarded above, the Federal Government welcomed State bids. The only way the Australian consumer will win is if this NBN goes to anyone but Telstra. We will not stand for higher prices, simple as that.

    WIN WIN for Telstra Anonymous -- 01/10/08 (in reply to #320113271)

    Yo Moron, If Telstra builds the NBN and charges too much for it, then it wont get enough customers to make it viable and either it will be repriced at a level that will eventually get enough customers or they will lose a truck load of money and or it will give the perfect opportunity for Terria or anyone else to come in and build and offer a cheaper alternative !

    As opposed to Terria winning the NBN (not a chance) with a monopoly and then we would be stuck for price and no alternative competitor

    By the way NO ONE will lend Terria the money required to build the NBN.

    The Govt and ACCC will NEVER give anyone a monopoly.

    But if Terria can magically win the NBN, I as Telstra Shareholder will be ROFL. either way.

    Telstra wins BIG. plan B baby, plan B.

    In case you didnt know, Terria's ultimate position is NOBODY build's the NBN.

    TELSTRA WANT THE MONEY Peter -- 01/10/08 (in reply to #320113274)

    Dont fool yourself that Telstra dont want it built, they already asked for $4Bill before NBN was ever discussed, and they were rejected, Dr Ziggy even said himself that they under spent approx $400M per year for 10 years on repairs and infrastructure work as they wanted to replace not repair with fibre. They NEED the money from the Governement as they dont want to spend it themselves and they certainly dont want any REAL competition.

    Dont kid yourself that not enough customers means they fail, we need, we will use it no matter the cost, therefore Hellstra knows if they win the y can charge what they want, just look back over 20 years of monopoly telephone networks.

    Where do all these tools that Love Hellstra come from?

    I came from your mum's bedroom tool time -- 01/10/08 (in reply to #320113278)

    say hi to daddy

    @telstra Anonymous -- 02/10/08 (in reply to #320113278)

    i thought they already had a monopoly. at least get your stories straight down at tttt girls.

    The Real Story Anonymous -- 02/10/08 (in reply to #320113274)

    "If Telstra builds the NBN and charges too much for it, then it wont get enough customers to make it viable and either it will be repriced"

    This is absurd. Bigpond is already the most expensive ADSL on offer, yet have 50% of the market. Telstra only cares about 18% ROI, if they can bleed fewer sheep for more, they will. I repeat, I will not pay more for less.

    "or it will give the perfect opportunity for Terria or anyone else to come in and build and offer a cheaper alternative ! "

    Are you insane? How will TERRIA pony up $20 Billion to roll out a network along side Telstra?

    "As opposed to Terria winning the NBN (not a chance) with a monopoly and then we would be stuck for price and no alternative competitor "

    What on Earth have you been reading? We currently have a Telstra monopoly, and TERRIA wants to build a completely open access network. I repeat for the slow, open access. The consumer will win if TERRIA builds this netowork. It wil provide us with choice and force Telstra to lower prices. If Telstra is awarded the NBN, that is it. All current options are gone, and no one else can afford to compete.

    "The Govt and ACCC will NEVER give anyone a monopoly. "

    That is exactly why the ACCC is in court with Telstra every day of the week.

    It is disturbing that you want Telstra to build this. Do you actually want to pay more?

    @ The real story Anonymous -- 02/10/08 (in reply to #320113343)

    "Are you insane? How will TERRIA pony up $20 Billion to roll out a network along side Telstra?"

    I agree with you, Anon. These crazy NWAT fellas actually believe in "True Competition" (competition on the infrastructure level) in a country that's too big to afford more than 1 NBN.

    We want competition on the ISP level because no telco in this country can afford to build their own network that would provide all Australians with high-speed internet.

    Plus Acacia and Terria want to protect their investments, that's why they're asking for a monopoly (?). If Telstra is allowed to overbuild, then all of Terria and Acacia's investments will go down the drain!

    The Real Moronic Strory Anonymous -- 03/10/08 (in reply to #320113343)

    Terria -"Please give me a monopoly, my competitor (telstra) charges too much theirfore there is no opportunity for poor little me to sell to "ripped off" victim consumers !!!!

    I mean looks whats happenning now with mobiles, Those damn Telstra people are the most expensive and yet they keep winning customers, have the biggest market share. Giving us the perfect huge opening to "save" these victims but fewer and fewer customers choose to stay with our crapy service. * see world iphone survey - Optus worst in the world.

    I know open access is the 1 absolute condition of the nbn but I wont stop callng for it the media as if I'm the only party who will agree to it. And regardless of how`often Telstra say they dont ask for a monopoly and fully expect the ACCC to oversee and guarantee open acess.

    Did you guys find any finance yet ! or are you still collecting bottles to return for the 5c deposit.

    Alas the farce is drawing to an end.

    @interesting Anonymous -- 02/10/08 (in reply to #320113271)

    you wont stand for higher prices, for what stupid. there isnt an nbn and wont be in the forseeable future, unless its telstra. wake up tttt boy.

    In that case Anonymous -- 02/10/08 (in reply to #320113296)

    we're better off not having an nbn. no nbn is better than a telstra one

    @in that case Anonymous -- 02/10/08 (in reply to #320113305)

    yes, i know thats the whole tttt agenda, thanks for finally admitting it.

    Agenda Jason -- 02/10/08 (in reply to #320113306)

    Regardless who's "agenda" you think it is the better outcome for Australia is for no NBN if the only option is having Telstra build and control it.

    @agenda Anonymous -- 02/10/08 (in reply to #320113307)

    thanks jason that is is your opinion, which i simply disagree with.

    Can't help it I guess anonymous -- 02/10/08 (in reply to #320113308)

    As they say you can't stop the stupid from being stupid

    @cant help it Anonymous -- 02/10/08 (in reply to #320113312)

    thats so true, but there maybe hope for you yet, stupid.

    TELSTRA OR CHAOS. Sydney Lawrence -- 02/10/08

    Congrats Suzanne for the red rag to the bull. Look lets all be honest and a little sensible.

    The greedy have seen the 4.7 billion on offer and the snouts are in the trough. However the hope of big bucks for little effort using smoke and mirrors and three card tricks wont work.

    Easy cash is no longer available for the minnows and even Telstra will have second thoughts on the viability of the NBN. Talk is cheap but borrowings are expensive as Terria etc will soon find out.

    Senator Conroy please be very careful on behalf of the Australian taxpayer, to be sucked in by those who can't deliver without additional massive public cash injections would be a monumental disaster for Australia.

    Also, for those whose only defense is to call certain opinion posters Telstra lovers, please be advised that I have no Telstra shares, am not paid by Telstra and am driven only by my support for Australia and Australian companies.

    Chaos is better than telstra Anonymous -- 02/10/08 (in reply to #320113301)

    Did you sell your shares Sydeny?

    Telstra AND chaos Mel Sommersberg -- 02/10/08 (in reply to #320113301)

    I agree Sydney, let Telstra take $4.7bn of taxpayers' money to build a network that Telstra, and not the taxpayer, will own and then let Telstra charge upwards of $100 per month (ah la NextG) for piddly data allowances that would be exceeded by the end user sending a few pings.

    I mean, fair's fair - why should the taxpayer and customers benefit from this? let's do the right thing by Telstra shareholders and continue to let Telstra gang-rape our wallets.

    More NBN talk and no action! Steve Miller -- 02/10/08

    Here we go again, more spin & no action. This bidding process is never ending. Meanwhile there are thousands of households out there who cannot get broadband services at all.

    well! Anonymous -- 02/10/08

    tttt, heres what one of your own now thinks.

    http://forums.whirlpool.net.au/forum-replies.cfm?t=1049901#r19

    even the pro foemen are waking up, but not you hey.

    I prefer no one builds the NBN. James Dean -- 02/10/08

    What a load of crap.
    The whole idea of the NBN is such a pathetic attempt for government to vote grab and companies to get a free ride off the taxpayer.

    Specifically what is wrong

    Raiding the future fund by overriding the governors of the fund.

    One size fits all approach.

    Crowds out investment in alternative technologies.

    Crowds out alternative projects.

    Has stalled broadband development in Australia while everyone waits to see what will happen.

    I would like to see the government shelve this completely and leave it to consumer demand to drive roll outs of faster broadband.

    If you must have a monopoly provider backed by government money why not have 1 provider in each state with a proviso that after X years they can then compete against each other

    Rubbish about commercial returns. Government will crow if they get %10 returns but as keystone investor they should be aiming for %25 returns ie: double their money in 3 years then sell their stake.

    And lastly it fills Zdnets comments with idiots pretending that their favourite supplier is the only logical choice without ever actually considering the whether their is a real need for a NBN.

    Acacia - The Dark Horse... Anonymous -- 02/10/08 (in reply to #320113318)

    It seems that Acacia are well placed as a dakhorse to win the bid....Open Access is vital to the NBN being for all Australians!!!

    Telstra knows that and are now frightened...

    @acacia Anonymous -- 02/10/08 (in reply to #320113354)

    cra*

    telstras not to bad.. barry -- 03/10/08

    1st I'd like to apologise to sydney, (rofl yes u heard correct, someone saying something nice in this forum :O) I said some rather not nice things in some random post in some other random topic, regarding his shareholder status, anyways sorry, but i do get so ever frustrated watching telstra use flag flying as a propaganda tool, i work for them, I've worked in numerous departments, and I've learnt through all of them customer service to telstra is a means to an end, and the end been profit, as soon as cust service stands in the way of proift it must be cut...this is why telstra has such strictly enforced AHT (Avg Handling Time) limits and frankly i feel a little off put that when a customer is spending $60 a month there 1st fault in a year is only given 5 minutes of tesltra time... which equates to ~$4 of wage, most faults dont even make it to the field before telstra rectifies them from our end, so that $60 a month is going towards i dont know what, i just find the cust atittude horrendous, back when i worked for coles we would re-arrange a whole stockroom to reach a newly delivered carton of soy milk for a cust who wanted 1, a 2 hr + job, at telstra we get them to unplug all their equip, try different phones, neighbours phones, friends phones, if we do send a tech out there and they made an honest mistake and did have a faulty phone, we slap with no only the tech call out fee, but a bit of profit as well... if a company can happily (we have posters promoting this on our walls) do this to their customers and have its fans go 'but its australian hooray' then i truly am saddended at the state that this country must of become...

    hopefully syd you wont have a problem with acacia getting the bid if they prove they can fix it? cause hey, small aussie business's are better than big aussie business >.<

    Memory is a wonderful thing Anonymous -- 05/10/08

    Anyone but Tel$tra! Of course the right regulations have to be put in place no matter who wins, but if Tel$tra win then I will be sick.

    Anyone with a memory that does not have a personal stake in Tel$tra winning should agree with this. Just look at how they have screwed us over in the past:
    1) They limited ADSL for 8-9 years with their lame reasons and STILL limit the upload speed.
    2) When they had more power, we all used to have to put up with 3gigs/month!!
    3) They have been able to provide ADSL2+ for ages, but once again have held this back.

    These are only a few things that come to mind, but the trend is that if there is any way that Tel$tra can make a profit by screwing us all, they will, and I am sure they will find a lot of ways if they win this bid. It is what they do best.

    @memory Anonymous -- 05/10/08 (in reply to #320113532)

    you'd better head to the porcelain then idiot!

    Share the wealth. Sydney Lawrence -- 06/10/08

    Barry no need for apologies but thanks anyway. Your thoughts are interesting and I hope Telstra consider them. What must be understood, and I am sure you do Barry, is that companies (Telstra included) must make a profit to stay in business. Owners (shareholders) do profit but so do the employees and Government. And as I have said many times every man, woman and child in Australia has a financial interest that Telstra remains profitable and healthy.

    well, theres a difference me -- 24/10/08 (in reply to #320113551)

    well sydney, while i agree that all companies have a right to be profitable, I also believe they should put there responsibilities ahead of obsence amounts of profit, perhaps if telstra lowered there yearly profit by say, 2 million, thats 600 less customers who ring me every 2nd day, wanting to know why there crumbling pits havent been repaired in over 6months, why there pair gain system hasnt been upgraded, why there stuck on a sub standard RIM, why telstra wont pay to have a riser on the telephone pole so that everytime a truck comes down her street her phone line doesnt get taken out, I agree whole heartly with you sydney that a company deserves a healthy profit, but this profit telstra is getting right now, is not healthy, it is gained through the neglect of the infrastructure that it fights so hard to isolate from everyone else, and granted telstra may resent fixing infrastructure for optus sponging, but these were all telstra customers, all of them, that i deal with pay telstra good money to maintain there lines, over 90% of the repairs done to telstra infrastructre is a) resoldering a joint, b) wrapping a cable in plastic and rejoining the wires, CNI's (when new cable is needed) is a death sentence to anyone in want of a decent service... drop telstras profit by 10 million and most of this could be cleared off, problems gone, but telstra like a pig to its trough, refuses to give up anything

    hello barry -- 24/10/08 (in reply to #320113551)

    telstra isnt just healthy profit, but obscene profit at the expense of its existing infrastructure

    Acacia Anonymous -- 30/10/08

    Great, Israeli control of key telecommunications infrastructure. Isn't that what got the US into trouble.

    Racist Moron Anonymous -- 10/11/08 (in reply to #320115187)

    To Anonymous 301/10/08 - how did you come to the conculsion that Acacia winning a bid to provide NBN - is ISRAELI Control ...?

    What al oad of racist rubbish is that...! You really are a moron...

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