Friday, September 7, 2007

Deutsche Telekom enters bid to build high-speed broadband network in Australia

German telco Deutsche Telekom (DT) has entered an unexpected bid for a tender being held in Autralia to build a high-speed network.

DT is seeking partners for the venture, with its subsidiary DT Asia stating that: “In terms of the investment required, DT Asia is confident that appropriate financial partners are available to support such a strategic infrastructure opportunity. DT Asia has a preference for Public Private Funding with an appropriate commercial return.”

If successful, the venture could precede the roll-out of IPTV services across the new network, as it has recently demonstrated a firm level of commitment to the technology in its native Germany by announcing plans to gain an extra 100,000 to 200,000 customers by year-end.

Due to Australia’s sparse population in large parts of the country, DT is also reportedly asking for “targeted subsidies…. to reach the desired coverage that would otherwise not fit within ‘normal’ economic models for the wholesale broadband operator.”

Other entrants in the tender at present are Australian telco Telstra and the G9 consortium, which includes the telcos Optus, AAPT, Soul and TransAct, all of which already operate in Australia.

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