TPG will build, own and operate a 10Gbps fibre optic network in Adelaide under a project conceived by the City of Adelaide to establish itself as a major business hub.
The ‘ten gigabit Adelaide’ project was first discussed last year, with the council wanting to “create a city that is one big local area network”.
It will involve around 100km of fibre optic cabling and is part-funded by the City of Adelaide.
TPG CFO Stephen Banfield told investors this morning that the network would be built and operated by the telco’s corporate business unit.
“TPG will be Adelaide’s official foundation network and services partner to roll out a new fibre optic network capable of delivering 10Gbps services per customer to over 1000 sites in Adelaide,” Banfield said.
“TPG will own and operate the network, the construction of which is occurring with financial support from the Adelaide city.
“That support will substantially reduce the costs that would normally be payable by businesses in Adelaide to obtain access to such remarkable speeds.”
Banfield said TPG and its wholesale customers would benefit from the build by being able to supply carriage services to users in the CBD “and along the main commercial strips in North Adelaide".
“Adelaide businesses will benefit from high-speed connectivity at very attractive prices,” he said.
“It’s an extremely exciting project for TPG’s corporate business, and we’re pleased and proud to work with the City of Adelaide as it works to achieve its vision to become a hub for business in Australia.”
The network rollout is expected to begin in early 2018, the City of Adelaide said.
The Adelaide project underlines the problems - and types of competition - that NBN Co will encounter as it tries to coax enterprises onto its own inner-city network.
NBN Co is looking to supply 1Gbps symmetric Ethernet services for enterprise. It has also said it will prioritise enterprise orders as it looks to secure 20 percent of its total revenue from the business market.