Conroy sure of Telstra role in NBN
- — 21 December, 2010 10:44
The Federal Government is confident Telstra shareholders will approve a deal that allows the giant telco to participate in the national broadband network (NBN).
NBN Co chief, Mike Quigley, will re-open talks with Telstra in January to try to secure the $11 billion deal to compensate for the telco's loss of monopoly when the network is built.
Communications Minister Stephen Conroy is confident an agreement will be reached.
"NBN Co and Telstra are absolutely beavering away to try to finalise this before Christmas," he told ABC Radio on Tuesday, adding the government already had a non-binding agreement with the telco.
"The Telstra board are recommending the deal to its shareholders."
Senator Conroy's comments follow the release of NBN Co's business plan, that estimates a basic broadband service will cost between $50 and $60 a month.
The federal opposition is sceptical of the project, arguing the technology could be obsolete by the time the network is rolled-out over the next decade.
Senator Conroy insists fibre won't be outdated in the "foreseeable future".
"Suggestions that another technology is going to come along and replace fibre are just absurd," he said.
"Fibre is considered, by all of the technology experts, to be future-proof."
Opposition frontbencher, George Brandis, says the NBN is not a good deal for consumers and reiterated the coalition's call for an independent cost-benefit analysis of the $35.9 billion project.
"Australians deserve a good, affordable broadband service," he told Sky News, noting taxpayers won't begin to see a return on their investment until 2030," he said.
"20 years ago people didn't even use the internet ... we are entitled to be sceptical."
