NBN Co has indefinitely suspended its network construction tender after construction companies were unable to provide acceptable terms and prices following four rounds of pricing negotiations.

NBN Co Head of Corporate Services, Kevin Brown said the NBN would be built, but not at any price.

“We have thoroughly benchmarked our project against similar engineering and civil works projects in Australia and overseas and we will not proceed on the basis of prices we are currently being offered.

“NBN Co is confident it can secure better value for money by going a different route. We have left the option open to continue negotiations at a later stage.

Mr Brown said the company was taking “a different approach that we think will produce a better result”.

“The new approach will take into account recent supply chain arrangements, volume certainty, a gainshare for continuous improvement, and involve a national construction footprint. The aim of these changes is to improve our capacity to accelerate the rollout in anticipation of a definitive agreement with Telstra,” said Mr Brown.

NBN Co commenced the tender process with a call for request for capability statements 12 months ago that attracted 45 potential suppliers. This was narrowed down to 14 companies and joint ventures that proceeded to the request for proposals. The 14 companies are:

 

  • Communications & Fibre, a division of Cut and Fill Pty Ltd
  • Connect X Joint Venture (Abigroup Telco & Energy a division of Abigroup Contractors Pty Limited and UGL Infrastructure Pty Ltd)
  • ETSA Utilities
  • Jemena Asset Management
  • John Holland Pty Ltd and Conneq Infrastructure Services (Australia) Pty Ltd Joint Venture
  • McConnell Dowell Constructors (Aust) Pty. Ltd.
  • Monadelphous and Instalaciones Inabensa Pty Ltd Joint Venture
  • Powercor Network Services
  • Silcar Pty Limited
  • Syntheo Joint Venture (Service Stream Holdings Pty Ltd and Bovis Lend Lease Pty Limited)
  • Telstra Corporation Limited
  • Transfield Services (Australia) Pty Ltd
  • Visionstream Australia Pty LTD
  • Downer Kordia Tenix Joint Venture (Downer Edi Engineering Pty Ltd, Tenix Australia Pty Ltd and Kordia Solutions Pty Limited)

The Queensland Government has released a discussion paper: Queensland’s approach to the National Broadband Network, and called for feedback from the community about ways to best use the NBN.

The Australian Government has announced plans to develop a national strategy to guide the uptake of the National Broadband Network (NBN) with the aim of making Australia a world leading digital economy by 2020.

A survey of IT experts by the University of Sydney has supported calls to halt the rollout of the NSW Clinical Information System FirstNet, with a review finding the system should be spearheaded by an IT-savvy clinician.

The Future Fund Board of Guardians has announced that it has ceased to be a substantial shareholder in Telstra with the sale of shares down to a holding of 620.4 million shares or 4.99% of the company.

The Queensland Government has launched a new online toolkit and ICT database and directory to assist local businesses to take advantage of the National Broadband Network (NBN) as is rolled out.

Amendments to the National Broadband Network (NBN ) legislation introduced by Federal Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy,  have been passed with some late changes.

A white paper produced by the Australian Information Industry Association (AIIA) and Fujitsu has outlined opportunities for the financial services industry to improve its customer service by using techniques of cloud computing.

Australian online retail businesses are facing road blocks from suppliers who are trying to prevent their products being sold online, according to a recent survey by eBay.

Telstra has been forced to delay its extraordinary general meeting, scheduled for 1 July, due to delays in the process of negotiation over the National Broadband Network. As a result, NBN Co has indicated that the schedule for construction of second release sites may be delayed.

The Australian Communications and Media Authority is seeking feedback on allocation systems for telephone numbers in its third consultation paper about the future of numbering in Australia – Allocation and charging of numbers.

The Korea-Australia-New Zealand Broadband Summit  is to be held in Hobart from 28 to 29 April this year. 

The Swedish-based Handheld Group has opened its Asia-Pacific headquarters in Sydney, Australia, to provide a local presence and take advantage of proximity to Asia.

Townsville has been selected as one of 24 cities around the world to receive a Smarter Cities Challenge grant from global technology company IBM this year.

The new 449 kilometre fibre link between Perth and Geraldton in south-west Western Australia  has been completed, becoming the the first part of the National Broadband Network (NBN) in Western Australia.

The Minister for Broadband, Communications and the Digital Economy Senator Stephen Conroy has announced an agreement with NEC Corporation to promote innovation and international excellence which capitalises on the rollout of the National Broadband network (NBN).

Under its terms of reference, the Committee will investigate:

A new computing facility called MASSIVE – or Multi-modal Australian ScienceS Imaging and Visualisation Environment – ­is the latest tool in the fight against serious and life-threatening illnesses including lung disease, diabetes, AIDS and cancer.

34 new inventions have received grants of up to $2 million to commercialise their projects under the Federal Government’s new Commercialisation Australia initiative.

Assisting the government to achieve digital switchover, delivering key projects to address ongoing spectrum demand, and planning for new services have been identified as key tasks in the Australian Communications and Media Authority’s key spectrum management roadmap, the Five-year spectrum outlook 2011-2015.

Software application provider App-DNA has established a new regional office in Sydney, NSW, and a research and development centre in Perth, WA, to take advantage of the opportunities available in the Australian market.

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