Telstra lodges $5 million bond for national broadband network

Telstra has taken a step closer towards securing the Federal Government’s $4.7 billion national broadband contract by being the first company to lodge its $5 million bidder's bond.

The Optus-led G9 consortium also showed it was seriously vying for the tender by appointing former Telemedia CEO Michael Simmons to manage the group’s bid.

Telstra said it had also delivered its previously secret network information to the Department for Broadband, Communications and the Digital Economy. This information will detail Telstra’s network infrastructure, allowing other bidders to base their tender proposals around it.

However, Telstra said the information would only be available to other bidders when the Department agreed to a confidentiality deed.

"Today's actions by Telstra put us a step closer to starting work, and put the onus on others to quit complaining and put up their money," said Telstra wholesale group managing director Kate McKenzie.

"Telstra's bid team is now fine-tuning the company's plans, and we look forward to the Government making decisions in time to allow construction to begin by the end of the year as the Minister has stated.”

Telstra also supplied the Department with a mathematical model that other bidders can use to help estimate their costs.

The model is based on Telstra's physical records of the elements within the company's network, allowing bidders to estimate costs based on the location of homes and exchanges, pits and pipes.

"With the combination of the network information and the (mathematical) model, Telstra's competitors will have access to data that is reasonably required to put together their bids," McKenzie said.