Austar backs off broadband in WiMax waiting game

Austar has cooled its interest in a broadband rollout but hopes WiMax business models will evolve soon, according to the company's CEO.

Speaking at the company's half year results announcement, Austar head John Porter said that the company was still keeping an eye on broadband but did not plan to enter the market any time soon.

"There are a lot of things, as you would know, up in the air in relation to broadband. My view is the company needs to keep its powder dry in this area," he told investors.

Porter added that Austar would keep a watch on broadband in light of the changes in the regulatory and political environment, including the government's Broadband Connect scheme.

Under the program, the government will invest almost AU$1 billion in a WiMax network to cover the bush, bumping the broadband-enabled population up to 99 percent of all Australians.

Austar has already independently invested in the long-range wireless technology, recently awarding Nortel a contract to supply WiMax equipment for a proposed trial in regional Australia.

"[I think] it's premature to invest in a rollout with the company and that there are business models for WiMax that will emerge over next month, or year even, which may provide a better way forward for Austar, in terms of leveraging its assets of spectrum and intellectual property," Porter said.

The market should not expect a large capital investment from Austar in broadband in the near future, he added.

In 2005, the company said it intended to roll out WiMax in over 15 regional communities.