Terria hit with two losses

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Terria hit with two losses

NBN consortium Terria appears to be falling apart after TPG/Soul and TransAct announced their decision to withdraw from the consortium.

The losses come less than a month after AAPT announced its decision to leave the consortium.

Michael Egan, chairman of Terria, said TPG inherited its interest in Terria via its acquisition of Soul earlier this year. Since that time, Soul has not been an active or contributing member of the consortium.

“Their announcement formalises what has been reality for a number of months,” he said.

According to Egan, Terria will be bidding the right to roll out the national broadband network (NBN) and is determined to win.

“Our bid team is finalising the plan for a crackerjack, ground-breaking, open network for the benefit of all Australian consumers and businesses,” he claimed.

The consortium will also have to make the bid without TransAct, who also formally withdrew from Terria.

However, Egan emphasised that TransACT and Terria would remain firm allies in the battle to provide all Australians with less expensive broadband services.

“This can only happen with an assured open access network that is properly regulated,” said Egan.

Both companies would be submitting bids for the roll out of the new National Broadband Network and Egan said this was a long-standing expectation by both companies.

“Terria will bid for the right to roll out the network nationally, while TransACT will bid for the ACT only,” he said.

Egan claimed that as the bid date drew closer it had become apparent that it was in the interests of both companies for TransAct to formally withdraw from Terria.

“This will enable commercial negotiations between TransAct and Terria to be conducted without any conflict of interest, either real or perceived, among our respective directors.”

Egan confirmed that proposals would be based on common principles.

The Terria consortium still includes: iinet, Internode, Optus, Macquarie Telecom and Primus.
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