Australian Govt matches NZ with fibre to home commitment

Kevin Rudd has just announced a major shift in policy:

THE Federal Government has announced the “largest infrastructure decision in Australia’s history” after deciding not to award the national broadband network contract to a company.

Prime Minister Kevin Rudd said the Government would lead the development of a national fibre-to-the-home broadband network up to “100 times faster than what many people use now”.

“Years of failed policy have left Australia as a broadband backwater,” he said.

“This new super fast national broadband network is the single largest national building project in Australia’s history.”

Mr Rudd said the Government would seek investment from the private sector to build the network.

Construction would begin in the middle of the year and take “seven to eight years”, he said.

Sounds somewhat similiar to here.

NBR reports:

The winning telco in Australia’s national broadband network tender? None of the above. At a press conference this morning, prime minister Kevin Rudd said the government will drive the building of a fibre network itself – taking a leaf out of New Zealand’s book.

The government has also dramatically expanded the scope of the network from fibre-to-the-the node to fibre-to-the-home, putting the total build cost in the vicinity of $A43 billion.

The government’s share of the network, beyond the initially promised $A4.7 billion, will be funded by an infrastructure bond.

The network will be built by a private-public company, with the private investors able to hold up to a 49% stake – a set up that echoes the public-private fibre companies proposed on this side of the Tasman by Communications and IT minister Steven Joyce last week. …

“Fibre to the home, fibre to the business and fibre to the premise is what the 21st Century economy is all about,” says Mr Rudd.

Well done Kevin Rudd. This may also provide some opportunities for companies to pick up work on both sides of the Tasman.