|
SYDNEY (Australia) - AUSTRALIA'S competition watchdog said on Monday it had rejected a proposal led by Singapore Telecommunications Ltd to build a multibillion-dollar high-speed broadband network in Australia.
The Australian Competition and Consumer Commission rejected the bid proposed by SingTel and eight other telecommunications groups, saying it did not have adequate audit mechanisms.
'The undertaking gives the network owner a high degree of discretion in unilaterally determining non-price terms and conditions for the 15-year undertaking period, without independent regulatory review,' ACCC Chairman Graeme Samuel said in a statement. 'We could not accept so much discretion from a gas, electricity or rail firm. Access seekers would not know where they stood.'
The regulator, however, said it was generally comfortable with the pricing structured offered by the so-called 'G9' consortium, and that it was open to receiving a revised proposal.
David Tudehope, chief executive of consortium member Macquarie Telecom, said while the proposal was rejected, it 'shows clearly that the ACCC does view our approach favourably.'
Last year, Telstra Corp abandoned talks with the ACCC on building a network after failing to agree on price mechanisms.
Broadband was a hot political topic during the recent Federal Election. The newly elected Labor government has said it plans to invest A$4.7 billion Australian (S$6.1 billion) to build a high-speed network in a public-private partnership. -- AP
| 
