Broadband … positive steps from Basslink

Andrew Connor Digital Tasmania MR

“This is the kind of commercialisation timeframe we would have expected back in 2006 when Basslink was commissioned. This two and a half year delay on the part of the State government and the cable’s previous owners is simply inexcusable.”
MEDIA RELEASE

POSITIVE STEPS FROM BASSLINK

(FOR IMMEDIATE RELEASE)

Launceston, TAS, 15 May 2008 – Digital Tasmania cautiously welcomed today’s announcement by Basslink that they are committed to broadband choice in the state and have today secured a carrier license from the ACMA, an essential step required in preparation to light the Basslink fibre optic cable.

Andrew Connor, a spokesperson from Digital Tasmania, said that Cityspring had clearly wasted no time since acquiring the Basslink project from National Grid last year.

“We welcome the commitment of Cityspring and Basslink to the principle of consumer choice in the state. We are watching closely and will ensure that they are held to that commitment.”

“What is clear from today’s release is that, in the eight months they’ve owned the cable, Cityspring and Basslink have quietly progressed further down the road to a commercial outcome for the Basslink fibre than the Tasmanian government has since the day the cable was laid.”

“This is the kind of commercialisation timeframe we would have expected back in 2006 when Basslink was commissioned. This two and a half year delay on the part of the State government and the cable’s previous owners is simply inexcusable.”

The group however warned that Basslink’s parent company, Cityspring and the State government, along with their preferred network operator, Aurora, must work together to deliver a successful outcome for everyday Tasmanians.

“The most important thing in this situation is that we see true competition for ISPs and large customers, like Betfair or academic institutions, who move massive amounts of data across Bass Strait.”

“Going from a monopoly to a cosy duopoly is not the result we are looking for. Consumers will not reap the benefits if that happens.
Cityspring and Basslink must guarantee realistic and competitive prices across the strait.”

“The ACCC has the power to regulate the cost of data transit across Bass Strait, so we hope and expect to see an open access network, with pricing comparable to the ACCC’s cost model. If that were not to occur, then the regulator may need to step in and pull Basslink into line.”

Mr Connor said however that today’s announcement raised more questions than answers for the government.

“In light of this announcement, it is clear that Cityspring does not believe the Tasmanian Government had the exclusive right to commercialise the Basslink optic fibre. This directly contradicts claims made by this government in the RFP that was issued in 2006 to find an operator for both Basslink and the on-island fibre network.”

“Finally, this government simply must answer the question on everyone’s
lips: if Cityspring is going it alone, why are we committed to paying them a total of $30 million through to the year 2021?”

About Digital Tasmania:

Digital Tasmania is a consumer action group, created to give a voice to the views and needs of Tasmanian consumers in the digital age. More information can be found on the group’s website, http://www.digitaltasmania.org/

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The Basslink media release can be found at this location:
http://www.basslink.com.au/home/index.php?id=24