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Conroy confirms: Telstra's out

Communications Minister Stephen Conroy this afternoon confirmed Telstra had been kicked out of the National Broadband Network bidding process, but that all the other bidders were still in contention.


(Credit: ZDNet.com.au)

"The government's NBN process has always been bigger than Telstra," Conroy said.

"The request for proposals (RFP) was specifically designed to give proponents flexibility in preparing their proposals, and there are very few mandatory requirements," Conroy said in a statement, noting Telstra did not submit a small to medium enterprise participation plan as the others — Acacia, Axia, Optus, TransACT and the Tasmanian Government — had all done.

The minister said there were four other mandatory requirements:

  • That proposals be written in English
  • That Australian legal units of measurement were used
  • That proposals include a complete and signed proponent's declaration
  • And that proposals for more than one state or territory must include a proposal for all states and territories

The government's NBN process has always been bigger than Telstra.

Stephen Conroy

"There was nothing to stop Telstra from submitting a complete proposal and competing vigorously with other proponents in this process," Conroy said, claiming the RFP was a level playing field. "However, the Telstra board sought special treatment by proposing its own process."

"Telstra had more than enough time and resources to fully understand what was required of proponents in this process," the minister added. "Telstra's Board will have to explain to its shareholders why it has decided to sideline itself from a process that will shape the Australian communications sector for the next decade."

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Talkback 38 comments

    laughable man Anonymous -- 15/12/08

    Actually I think Mr Conroys rather cocky comments will come and bite him in the **** when he's mired down in trying to actually get his NBN rolled out.

    Fair enough, exclude away, but you've just excluded australias chance to get a top notch broadband network instead of something half assed as well.

    also.. Anonymous -- 15/12/08 (in reply to #320118969)

    also I hate to be the one to mention this, but im sure that the issue is more with lobbying from another telco (or two) rather than an actual reason. Sad isnt it.

    Pants down Sage -- 15/12/08 (in reply to #320118970)

    Thank god Telstra is not going to build the NBN... they can't even follow the bid instructions.

    It is clear that had the Government turned a blind eye to this non-compliant proposal, Tesltra would have taken that as a licence to ignore any or all requirements in the future.

    They are either stupid, incompetent, or thought they could bully the Government.

    Telstra shares are down 12% today. The market has spoken. Telstra tried to be too clever by half, instead they have been caught with their pants down.

    Pants down Sydney Mike -- 16/12/08 (in reply to #320119038)

    "They are either stupid, incompetent, or thought they could bully the Government."

    And you don't consider that they have been subjected to any bullying by the Government?

    You have to be kidding. Why is it that so many of you Anti-Telstra commentators are so "one-eyed" !

    @ Pants down Anonymous -- 17/12/08 (in reply to #320119188)

    "And you don't consider that they have been subjected to any bullying by the Government? "

    the Howard government basically gave them the freedom to become the monopoly they are today - everything is reciprocated and if you don't agree with that you are the one being 'one-eyed'

    you've never worked with them in the field iruka -- 05/01/09 (in reply to #320119188)

    have you ever tried to work with Telstra? i rely on them for things my business needs to function and anyone who's been in this position knows that they make a business out of pushing around people smaller than them. if the government doesn't push them around, who will?

    Here Here Anonymous -- 01/02/09 (in reply to #320119038)

    Telstra are just arrogant bullies.

    Hopefully the Government will continue to stand up to them so we as consumers can get a good network at a fair price.

    @ also Anonymous -- 17/12/08 (in reply to #320118970)

    no, what's SAD is people not accepting the blindingly obvious reason why they were rejected. Nothing to do with lobbying, just plain stupidity.

    Hey you cowardliness Rex Alfie Lee -- 24/12/08 (in reply to #320118970)

    No, in actual fact it boils down to entering a submission that fits the guidelines. Telstra didn't do it so the big "T" got boned or actually boned themselves. Get a brain!

    laughable man Sydney Mike -- 16/12/08 (in reply to #320118969)

    Stephen Conroy should be ashamed of himself. I believe he has dismissed Telstra's bid as being non compliant, simply because it was too concise, did not take up the 3 filing cabinets of paper he would have preferred, and therefore has not allowed him an extended period of time to weigh up all the alternatives. And because it made him look like the incompetent minister, he has now proven to be, he simply spat the dummy back at Telstra, that he considered had been spat at him.

    @ Laughable man Anonymous -- 17/12/08 (in reply to #320119194)

    If you are neither blind nor illiterate, how can you believe a complete fallacy as to why they were rejected?? It says right there in plain text - nothing to do with being "concise" (more like half arsed approach)

    Sydney Mike Rex Alfie Lee -- 24/12/08 (in reply to #320119194)

    So Sidley, you have access to Senator Conroy's thoughts do you? I'm a bit of a seer myself & I think you're a ****

    Not just Conroy but many others stated outright that Telstra's offer was not compliant & should have been dumped from the beginning & given no credence whatsoever. The fact that Conroy deliberated it shows he was open to consider Telstra's offer but when it didn't comply it was dumped & rightly so.

    I've been critical of Conroy from the beginning but I have changed my viewpoint. I thought he was far too much a Telstra walk-over. I was wrong & am glad I was. Good job Conroy.

    @ laughable man Anonymous -- 17/12/08 (in reply to #320118969)

    I sincerely hope you're still around here when someone else is awarded the NBN and everything turns out just fine. Complete opposite of what all the Telstra propaganda will have you believe

    @ laughable man Sydney Mike -- 17/12/08 (in reply to #320119298)

    Well you better hope that it is not Telstra, with their band of very unhappy Sub-Contractors that I saw on strike today, and going by the slogans they had on their vehickles, a bunch of f.....k idiots.

    They should be happy that they even have a job, but are out on strike for better pay, which they certainly won't get, if they think Optus can do a better job than Telstra for less !!!!

    Sidley Strikes Again! Rex Alfie Lee -- 24/12/08 (in reply to #320119348)

    I know a few of these so-called "f.....k idiots" as you called them. "They should be happy that they even have a job". As far as I remember a very large majority of those actively in pursuit of work are working. Why should they miss out? Why should they be treated so harshly? All of the ones I know are incredibly unhappy, not so much with their work but rather the poor treatment they are getting from management, the intense pressures they are facing, the extreme overtimes they are forced into doing because Telstra is now top-heavy & has very low numbers of techies. The company is full of management just like a toilet-bowl pre-flush.

    Now what was your point Sidley? Do you actually have any idea of what you just said? Do you understand that Telstra have basically tried to demolish the workplace requirements that have been put in place around Australia by continued disregard to workplace laws? You say that the workers want more money, perhaps they do & perhaps they deserve more. Problem comes when you have Mr Sol-sun-shines-out-my-butt Do-nothing Say-a-lot Trujillo benefitting from his 13mill payload per year, not to mention the rest of the board & a few on the outer who no longer are even on the board, how can Telstra afford to pay their actual workers at all?

    I hope that A-hole, Sol, ends up in gaol along with the rest of the board for their disdain for the rights of their workers, let alone the public they have strived so hard not to deliver reasonable service to. Arrest the lot of them & leave them there for 5 years on fraud charges of "Impersonating a Telecommunication company's board". Then perhaps with a new board in place Telstra may become the great company it once was again.

    An Addition! Rex Alfie Lee -- 24/12/08 (in reply to #320119867)

    One of the things with a dissatisfied workforce Sidley is that they leave for better jobs elsewhere. I don't know if you realise that the bulk of setting up a Telecommunications company relies heavily on the techies on the ground. Even the middle-managers here are techies because they have to know the business from the ground up & once the jobs are better paid elsewhere that's where they're going to go.

    Telstra don't have those options available to them anymore & so the brains trust will be leaving & going over to the other side leaving Telstra without. Suddenly the other side have the capabilities to do the job.

    Having worked for Telecom Australia when it wasn't what it is now the heavy requirement of techies meant that they were being grabbed & taken all over the world to do their job. I guess their jobs will now be across the street.

    It's almost poetical. Well done Sol!

    There is Hope Anonymous -- 15/12/08

    I believe that this presents some hope to some real bids like Axia or Acacia.

    Lets hope they choose the best solution, that includes a futureproof network with decent access prices.

    Not surprising Terry -- 15/12/08

    This was always going to happen, let's hope that the best bid is now chosen from those who actually submitted what they intended to do.

    Telstra Out Anonymous -- 15/12/08

    Thank God Conroy has the guts to stand up to that Mexican American Bully.

    While he is at it, he should get the immigration Minister to pull Sol's work visa and deport him.

    This will send a message to all foreign thugs that when you come to Oz you play by our rules.

    Telstra Out Anonymous -- 16/12/08 (in reply to #320119042)

    Here here! Get the lot of them out of here now. Pure corporate poison the lot of them....

    @ Telstra Out Anonymous -- 18/12/08 (in reply to #320119042)

    Great comment, sums up the feelings of most Australians I think.

    I truly believed Labor would have awarded Telstra the contract, I am surprised- lets hope Australians can finally move forward and compete with the rest of the world!!

    Australia will be a laughing stock Syd -- 16/12/08

    Telstra's network will be the superior and the only one who will cover majority of Australia, where the NBN will probably not start and Telstra will be freed from the ACCC regulations and will allow to offer cheaper prices and the competitors can not complain.

    While Telstra's network is being updated the rest of Australia who will rely oon NBM will still be waiting and left behind.

    SHAME AUSTRALIA SHAME
    what a joke

    ...Huh? Anonymous -- 16/12/08 (in reply to #320119064)

    Telstra will NEVER be free from the ACCC and there are CHEAPER alternatives out there on the market that offer the same services, if not better, already.

    It's about time Telstra got slapped on the wrists. Just because they're a telco giant does NOT give them the right to lay down their own set of guidelines when everyone else has complied with those set by the Australian Govt.

    Remember people the Australian Govt. has a LOT more power than a privatised conglomerate who charge their customers grossly extortionate fees for such poor quality service, not to mention they've reneged on countless promises and contracts.

    Now THAT'S a joke!

    Well said Huh & another thing Sidley! Rex Alfie Lee -- 24/12/08 (in reply to #320119086)

    Telstra won't need the techs so they will go to other companies like the ones building the NBN. Can't see why their NBN won't work. Can't see why Telstra were so sure that they would be the team? Good riddance!

    It'll just be one more Telco that Sol has decimated.

    The joke used to go, "How do you get a small company?" Give a Kiwi a big company but I guess Sol has superseded that one. This is his 3rd attempt.

    I wonder Anonymous -- 16/12/08

    Gotta wonder in the back of your mind if it's also because Telstra didn't accept the Internet filtering trial:)

    Forget about court cases now Stephen Conman -- 16/12/08

    Let's just wait until they attempt to disconnect the copper in the ground (node to customer) from the Telstra network. All hell will break loose.

    Looks like this will not be completed before 2020.

    .. thank god for that Anonymous -- 16/12/08

    Final y some justcice int her world. Telstra have for too long bullied everyone and anyone.

    Telstra has hamstrung this country's broadband network for years, when all along they could have given us decent speeds, but instead decided to cream the top for a while.

    Sucked in is all I can say.

    If they wish to complain, perhaps they should call a help desk - just make sure it has one of those automated voices so that they go round in circles for hours on end wasting their day and their time...... On second thoughts, just call them selves.

    Why defend Telstra? Anonymous -- 17/12/08

    While we know that every big corporation is there to 'make money', Telstra have been screwing every last cent out of their clients for far too long (esp. Ma and Pa Aussies who stay with them because they don't know any better).

    Some real competition is what is needed right now and this may well do the trick.

    Sure, Telstra currently has the fastest network and most coverage nationally, but does that mean no one else should have the chance to provide an even better network?

    Actually while we're at it, let's limit all internet plans to 6 months or less and let some real competition happen?

    Can't defend Telstra. Anonymous -- 17/12/08 (in reply to #320119304)

    Telstra is one of the worst examples of profiteering I can think of. Lousy services at mindboggling prices, especially outside major cities where there is no alternative. Eg, extra data charges for ADSL of $150/GB on a lousy 200MB plan! Why are they allowed to do it? Telecomunications are essential infrastructure, not a luxury. The government must step in and stop this scalping, as they have for sports and entertainment. Forcing customers outside of cities to maintain a landline when VOIP is perfectly acceptable on naked DSL is probably their lowest act. Unfortunately the public are not texchnically savvy enough to appreciate what Telstra is doing. Billions of dollars in profit every year, yet keeping Australia using tin cans and string. Shame on you Telstra.

    Can't defend Telstra Anonymous -- 19/12/08 (in reply to #320119319)

    You obviously don't look at the practices of our Major Banks, if you think Telstra are profiteering to the max. Anyway, you don't have to use Telstra with their "mindboggling prices". Take your business elsewhere, at much lower prices, and stop your f.....g whinging. Nobody said you have to use Telstra, or are you too stupid to accept that fact.

    Read it again. Anonymous -- 22/12/08 (in reply to #320119560)

    Or can't you read? I'm aware of the banks, and insurance companies. I live less that 160 km from Sydney CBD, and Tel$tra is the ONLY phone provider where I am. "Essential Infrastructure", "monopoly", "gouging" are you too stupid to understand that? Listen to the whingers out there when they are scalped for mindless football or concert tickets. Why is ADSL2+ more expensive than ADSL with Telstra, when the opposite is true with other providers? I'll keep complaining as I resent the public paying exhorbitantly for Honest Sol's retirement plan.

    Can't defend Telstra. Sydney Mike -- 20/12/08 (in reply to #320119319)

    That was the most ridiculous comment posted in a long time. Here are all you anti-Telstra whingers complaining about paying too much, and wanting far more for less. Here are the Telstra workers going out on strike cos they want more money. Optus are also striking cos they want more money. All you bloody whingers want the best of everything, but not expect to have to pay for it, and in order to pay less would be prepared to see thousands of Australian workers at Telstra out of a job, and the profits going to an overseas outfit. Fair dinkum, when is all the bitching going to end. Why don't you whinging lot just pack your bags and move to Mumbai, or better still Afghanistan, where you can hurl all sorts of stupid comments at each other, well away from us here in the best country in the world. And to that bloke that wrote in some days ago, skiting about having his money in bank shares, I hope he has some in CBA.

    agreed!! joe -- 20/12/08 (in reply to #320119653)

    sydney mike!!! you made sense!!! *blows a party blower* congratulations, yes! people want cheaper services, techs want more money.... sol.. well sol can afford 20+ferrairis a year and telstra profits... phewwww! so the moneys got to come from somewhere... perhaps sol could take a slight pay cut? i heard he got some like 15 million plus bonus? 10 million between the 5000 striking workers... that would be pretty good no?? and all sol has to do is be content with his annual salary which is in the millions anyway... jeez, i agree sydney mike, if telstra wasnt such a money hungry greedy faceless corporation then there probably would be more money...

    Here we go again. Anonymous -- 22/12/08 (in reply to #320119653)

    Did anyone ever mention to you the old saying "a fair days pay for a fair days work"? The public wants value for money. Telstra does not provide that.
    What the hell does Mumbai or Afghanistan have to do with anything?

    Why defend Telstra? Anonymous -- 18/12/08 (in reply to #320119304)

    "Actually while we're at it, let's limit all internet plans to 6 months or less and let some real competition happen?"

    That would have to be one of the best suggestions put forward of late. (And I'm a Telstra fan !)

    2009 and falling... Anonymous -- 22/12/08 (in reply to #320119422)

    "Telecomunications are essential infrastructure, not a luxury".
    Minchin/Macquarie telecom/aided by the Australian newspaper are the direct mouth-piece for the US; and as such its lackey dog--the UK .
    [the latter has so gutted its own assets--by the
    astute and dishonest 'sleight of hand' that privatisation is productive--that all that remains are hospital bills for TETRA proximity.

    If you buy a lemon--you buy a lemon--hasnt sunken through to 'the obliging class' yet.
    THEY ARE TOO BUSY telling you how backward your country is.
    [of interest probably only for those 'in the know', and next-generation's investors--both the UK and US still see Nuclear Reactors as "powering the so-called future".

    The US representative is Al Gore--the Westinghouse
    salesman; while Professor Garnaut will provide the UK/OK Tedi/Petroleum 'sage' advice that only his own personal company can provide the expertise that such a 'complex issue' involves.

    Would it sound overly technical to disclose that
    'the luxury' of nuclear reactors-has never costed as an investement/return in the 50 years they have been in existence--and only Murdoch/BP Amoco and consorts accounting can prove otherwise.

    As a nation,australia has been a pawn since 1948--when the agreed sharing of technologies--never eventuated.

    Presumably continued censorship--and Phantom aircraft not even built--will instead propel us into the gutter even further.

    [essential infrastructures arent playthings for the bribery and corruption set].

    2009 and falling... Anonymous -- 22/12/08 Rex Alfie Lee -- 24/12/08 (in reply to #320119739)

    That's great but perhaps you should just stick top the subject. Your point may be valid elsewhere but we're talking about a specific issue here; I didn't say paranoid because I believe part of what you are saying. Yes America is in on the whole she-bang & if Britain had a point anymore it's not clear because America has taken over.

    Perhaps you are closer than initially suspected & talking about the Americans revolting us all by taking over the corporations here. Perhaps, maybe we should just remove all American CEOs in Australia & American board members to boot.

    I don't believe they have Australia's interests in mind at all.

    telstra dispicable dishonesty Anonymous -- 21/05/09

    This extract of a letter sent to Local member for Indi, the minister for stuffing up the internet Mr Conroy, and newspapers. Only our local member had the decency to reply, and has kept in touch regularly.
    "This letter is to ask if you are able to take up the cudgles on behalf of all of us that live outside the range of ADSL services. As a real estate agent with an office in North East Victoria, I do have ADSL in the office, but I’m sure like yourself work still has to be done from home.
    There are many issues involved in this argument.
    Telstra say they are upgrading exchanges. If you go to any provider’s web site, like Optus or Iprimus and type in my home number (number provided), you will be told, congratulations you have access to ADSL… Wrong! What you will find out if you apply through Telstra, is to pass the audit on the claim of updating their system is that they put a few hundred dollars worth of equipment in small exchanges but have no intention of upgrading the wires to the homes or businesses in those areas. Their representative told me that was not their focus, their focus was on wireless. Therefore no ADSL. Cynical and dishonest!
    The next issue given no line service is to look at the Government Guarantee satellite system. I would be grateful if it provided the same service but on enquiry, the providers or ISP’s of the service only deliver 200mb of download for the price I get a usable 5GB of download in the office. If I want the same limit at the same speed at my home office it is $109 per month or higher instead of $29. Not an equitable service.
    Wireless broadband the best alternative technically, is a similar price to satellite.
    I am sorry to be so disparaging of our bureaucrats and some politicians, but why don’t they have the sense to try some thorough research themselves in regional areas.
    Overseas, wireless networks are the way that they are heading. It is cutting edge technology.
    I am sure you are aware Australia is a laughing stock overseas when internet and phone services are discussed. The world is a smaller place now. People travel, listen to SBS and have satellite TV. The population can’t be told or misled about what is happening overseas. Japan and so many Asian and European countries have unmetered internet at extreme speeds. The argument Telstra puts forward in answer to this is to say we don’t have the population to support the infrastructure costs. Poppycock! Some of these third world countries don’t have huge GDP’s either. Some IT experts that have been on the ABC and news papers say it would be cheaper to rollout wireless networks than dig trenches to put out dated technologies such as optic fibres across Australia.
    Please, 2% of the population is 100% of the rural population and deserves greater consideration and equivalent services to conduct business on an equal footing."

    Opels contract for $2bill to roll out Wireless by end 2009 has been cancelled by Rudd, when they got into government. They announced Telstra was awarded a contract to do optic fibre "to the node". We then were told Telstra was not included in any tendering process...and finally we are told Telstra is going to be paid $43bil to roll our Optic fibre to only 80% of the population. Crikey! How stupid are we for not rioting over this deception? Oh sorry, the average Australian lives in the city areas and has no idea that this con is happening.

    My other question relates to the integrity of newspapers. Why don't we have any good investigative journalism anymore. Spill the beans on Telstra and the government.

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