Telstra accused of dressing up regional spend

The Federal Opposition and telecommunications analysts are rolling their eyes following Telstra's announcement today of a AU$187 million spend to improve rural telecommunications services.

Shadow minister for communications, Lindsay Tanner, said the nation's incumbent carrier is simply dressing up scheduled capital expenditure to give an appearance that it is providing special attention to regional areas

Similarly, telecommunications analyst Paul Budde said AU$187 million was a small part of around AU$3-$4 billion worth of capital expenditure that the company invests across all its operational zones.

"It's made to look like something new and it's not," Budde told ZDNet Australia, adding that Telstra should have spent the money on upgrading rural services 15 years ago.

Telstra Country Wide group managing director, Doug Campbell, announced the upgrade during a tour of south-western Queensland today, to inspect work on the rollout of untimed calls in remote regions, announced last year.

Federal minister for communications, Senator Alston, was also trumpeting Telstra's achievements in regional areas, "welcoming" BigPond's latest round of offers to provide two-way broadband satellite Internet service in remote areas, launched September 2001.

The service was bank-rolled through a AU$150 million Federal grant.

According to Senator Alston, the Government has allocated AU$1 billion to improving telecommunications in remote and rural regions. Budde says the taxpayer-funded improvements to the network have been supported by the previous sales of Telstra.

Today's announcements follow indications given by Senator Alston last week that the Government may be looking to accelerate controversial plans to sell its remaining share of the Telstra.

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