Despite having mothballed the previous government's $1bn OPEL WiMax network plan, Stephen Conroy has announced his great new idea: a WiMax network to cover broadband blackspots.
The network, which will be built by SA ISP Adam Internet, will be jointly funded by State and Federal governments along with some contribution by Adam.
"This investment will deliver high-speed broadband to homes and businesses across Adelaide suburbs in advance of the National Broadband Network," Senator Stephen Conroy said today.
"Broadband is an important part of family and business life and this project will help ensure more people in metropolitan Adelaide have access to high-speed broadband services," Senator Conroy said.
SA Minister for Science and Information Economy, Michael O’Brien said Adam Internet had won the contract to construct the network because of its "strong track record and position as one of the industry’s leading Internet Service Providers."
Senator Conroy's press release said the contract would create 110 jobs during the network construction and customer connection phase with 75 permanent jobs for ongoing operation and maintenance.
"Work will begin almost immediately on addressing more than 350 blackspot locations across Adelaide. First connections are marked for significant problem areas in Reynella and other southern suburbs.
"About 10 per cent of residential, commercial and industrial, properties across metropolitan Adelaide are unable to use ADSL, the most common form of broadband access," O’Brien said.
It is the first metropolitan roll-out of WiMAX in Australia (though WiMax is already used in some rural areas such as Internode's network on the Yorke Peninsula.) It will be called "Adam Max" and Adam says it will provide an "ADSL2+ equivalent service."
The rollout will take 15 months, with the first WiMAX service area coming online in October this year, but unlike the previous government's $1bn OPEL network plan, will only cost an initial $3 million from South Australia’s Broadband Development Fund and some ongoing contributions from the Commonwealth’s Australian Broadband Guarantee.
Mr O’Brien claimed the broadband blackspot initiative would bolster the South Australian economy. "A study by economics consulting firm, Systems Knowledge Concepts Pty Ltd (SKC) has shown that the economic benefit to the State of this initiative is estimated to be more than $87 million over five years," Mr O’Brien said.
People who can't get ADSL or cable and are interested in registering for the Australian Broadband Guarantee can do so at www.dbcde.gov.au/abg or by calling 1800 883 488.