BREAKING: Telstra dumped from government NBN process

Dan Warne15 December 2008, 9:31 AM

Telstra is out of the running to build the national broadband network, after the Government's expert panel rejected the company's non-compliant bid.


The Federal Government has excluded Telstra from the national broadband network process. The company was advised of the rejection by the Government on Sunday night.

The NBN expert panel rejected Telstra based on what Telstra CEO Sol Trujillo said was a "technicality" -- that Telstra did not include a small-to-medium enterprise plan as part of its 12 page proposal to the government.

Trujillo says this was a technicality because Telstra had separately submitted an SME plan to the government in September, before its formal proposal.

He said Telstra had not even been allowed to make a presentation to the government's expert panel on its network.

"We are a bit surprised at taking this action on a triviality, which we are very clear in our minds, we were fully compliant in the language of the RFP in terms of how we handled this matter. I don't want to speculate beyond that, because we've not had any conversation with the Minister or the appropriate people involved yet," he said.

"The important point is that our proposal is the only one that is funded, has true technical capability and workforce and trucks -- to actually deliver and integrate into our existing network," he said.

Trujillo said the Department of Communication had a long history of failing to deliver on infrastructure. "Three and a half years and counting on the NBN, an RFP process that's six months behind schedule," he said (ignoring the fact that the delay was almost entirely due to Telstra delaying providing infrastructure details on its existing network.)

More to come...

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Raindog (Senior Forumologist):

Part Seven of a Government Broadband proposal that will vaporise into not going to happen.

We all know if Telstra is denied monopoly control that it will do whatever it can to stifle progress. For some litigation lawyers at least it looks like brighter times ahead.

As for Sol with his 12 page submission, what the hell did he expect? No doubt he'll add another few million to his remuneration package to compensate for the rejection he has had to encounter.

15 December 2008, 10:21 AM (1 year ago)report abuse Send to a friend reply

Cornblower (New user):

I am so glad the arrogant sod (Trujillo) got what was coming to him over this. They (Telstra) are right in believeing that as a privatised corporation their responsibilities are to their shareholders and not to the country ... but they parade around arrogantly, not bothering to pay lip service to the tender process, as though they own the industry. Well suck on this one Trujillo. The honeymoon is over baby.

15 December 2008, 10:47 AM (1 year ago)report abuse Send to a friend reply

Truckasauras (User):

Couldn't agree more mate. I am so glad that they've rejected Telstra's offer. This can only be a good thing.

15 December 2008, 1:53 PM (1 year ago)report abuse Send to a friend reply

Tin (Regular user):

Quoting Cornblower:
They (Telstra) are right in believeing that as a privatised corporation their responsibilities are to their shareholders and not to the country


Not entirely... They still have responsibilities to all STAKEholders, not just shareholders. If they don't treat customers and suppliers with respect, they will ruin the shares for the shareholders.
It's very simple business stuff taught to high school business studies students. Surely people making it to a board of a large company would know this too.

15 December 2008, 2:18 PM (1 year ago)report abuse Send to a friend reply

McBanjo (User):

Why is Telstra's share price tumbling? This is great news for both sides. The NBN and Telstra just aren't made for each other and Trujillo made this very clear from the beginning. Telstra even publicly demonstrated this this through their half-assed excuse for a bid, refusing to give full details until the NBN was guaranteed to make a highly profitable return.

The fact that the bid was thrown out on a technicality doesn't mean that Telstra had a chance of winning the NBN in the first place. Surely a company of this size would've read, and re-read, and re-re-read the terms of bidding if they even had the slightest interest in winning it.

15 December 2008, 2:29 PM (1 year ago)report abuse Send to a friend reply

Ausman (Regular user):

The Telstra board should fire Sol (and withhold any bonus, etc) for the rubbish he is trying to spin to cover Telstras non-compliance with the tender. There was no excuse and they could have resubmitted any prior SME information/proposals - and then argued their viewpoint afterwards.

Smart @sses should be put in their place by their parents when they are kids not promoted to eventually run companies as adults...

15 December 2008, 4:17 PM (1 year ago)report abuse Send to a friend reply

Raindog (Senior Forumologist):

Quoting Ausman:
The Telstra board should fire Sol

They should follow up by firing themselves soon afterwards!
Telstra's insular and hostile approach has impeded telecommunications in Australia.
While some short term gains for shareholders have been attained a big picture look says the current board and management have acted contrary to the interests of the nation and Telstra shareholders.


16 December 2008, 8:00 AM (1 year ago)report abuse Send to a friend reply

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