Optus pushing for tender extension or boycott

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Chief Executive for Optus Paul O’Sullivan has said that the Federal Government offer a five-month extension for all bidders for the new national broadband contract or will face a boycott.

The $4.7 billion national broadband contract would see those bidding creating a new high-speed network that will reach 98 percent of Australia’s population. The price is expected to be twice that amount, with the government pouring in $4.7 billion into the plan.

But on ABC television, O’Sullivan wanted assurances from the government that there would be "structural separation" between owning and servicing provisions on the network.

Structural separation involves the telecommunication company building the network would not own the network, thus meaning the government has full control.

Telstra’s chairman Donald McGauchie has confirmed that if the telco would not tender for the national fibre-to-the-node contract if the structural separation was in the contract, claiming that it had fail in other countries.

All bids should be finalised on the July 25 deadline, or five months from that date if an extension is granted.