Telstra broadband bid is valid: Conroy
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Natonal network: Telstra says it is prepared to commit up to $5 billion to the project (www.sxc.hu: Pantelis Kampas)
The Federal Government says Telstra has made a valid bid to build the national broadband network, even though the telco itself says it has not submitted a full bid.
Telstra says it is prepared to commit up to $5 billion to the project, but says it is not a fully-detailed bid.
The telco says it cannot put in a fully detailed bid because the Government has not yet addressed several issues, including the separation of Telstra's retail and wholesale businesses.
The Opposition says the Government cannot enter into negotiations with the telco because it has not put in a formal bid, and the process is a shambles.
But Communications Minister Stephen Conroy says Telstra's bid is completely valid.
"Telstra believes the Government can consider its proposal under the existing terms of the RFP so Telstra have stated that they believe that it can be considered, I'm sorry to disappoint Senator Minchin," he said.
Telstra's chairman Donald McGauchie says the Federal Government must meet all its demands before it will agree to build the network.
Mr McGauchie says the government's current requirements present too big a risk to Telstra's shareholders.
"Now is not the time for risks to be taken with shareholder funds," he said.
"The market presents all too much evidence of the troubles that some companies have got into by taking the decisions that in hindsight they've taken on risks that they should not have done so."
Several companies, including the Optus-backed TERRiA consortium and Axia, have today submitted bids to build the network.
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